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DanielL3 (Louisiana)
Posts: 65
Posted:
Does anyone see a problem or had problems with placing free ads in our HOA newsletter?
CjC
Posts: 210
Posted:
our newsletter is a glossy color newsletter and the ads more than pay the actual cost to publish it. Most are local realtors but also HVAC, pet sitting etc. We also have a free column for babysitting services, tutoring etc.
MarkM19 (Texas)
Posts: 1,459
Posted:
Daniel,
This is a interesting question and I look forward to seeing everyone's responses. Being on a board now for 9 years I can tell you the things that might make me have some concerns.

1) Would the add make people think the HOA is endorsing these business? What happens if the vendor fails to meet expectations would the board be blamed? The answer is as always of course.

2) Would allowing the adds be considered favoritism? Some will always find faults.

3) Would people think the board is getting some kickbacks from vendors? Board haters will use this and no way to counter.

MarkM19 (Texas)
Posts: 1,459
Posted:
CjC,
I see the difference in paid adds verses free adds. How do you handle the Non Profit revenue issues?
SheliaH (Indiana)
Posts: 6,964
Posted:
I don’t think I’d allow free ads simply because of the cost of printing and postage (for the offsite homeowners). It's best to develop a fee schedule, based on whether the ad would be in color (printing costs are more expensive) and space (a full or half page ad should cost more). For simple things like a teenager advertising his/her availability as a babysitter, you could always set up some sort of classified ad section and charge people a dollar to list things.

Of course, the board should reserve the right to reject ads that may be inappropriate, such as those using offensive language. As for the favoritism Mark mentioned, you could put a general announcement stating the placing of ads does not mean the Association or the board of directors endorses specific products or services and run that in every issue. It's also a good idea to come up with a deadline when ads should be submitted so the advertiser and the person(s) laying out the newsletter will have time to make adjustments or corrections before it goes to print.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
SheliaH (Indiana)
Posts: 6,964
Posted:
Almost forgot – regarding the revenue issue, the money we’d get for the few ads we did run went to miscellaneous income, just like clubhouse rental fees. That, added to HOA fees, would be spent for association expenses as usual and the newsletter never made a ton of money to create tax issues with us as a non-profit.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Typically ads are sold to newspapers/newsletters to pay for the production costs of them. It's how they make their money. The HOA is still going to incur costs running ads. So don't see them as "Free". It cost money to make/design the ad and print. The HOA shouldn't be getting any kick backs like "Mention this ad" kind of stuff.

I don't see offering ads in a HOA newsletter is a benefit. The HOA shouldn't be in the business of advertising other people's businesses. Especially since most don't allow them.

Former HOA President
SueW6 (Michigan)
Posts: 814
Posted:
You should know how much the newsletter costs for layout and printing.
There’s nothing wrong with having a sponsor to fund those costs. Give them a half page “ad” space.

Include In small letters: Thanks to all newsletter sponsors. Sponsorship ad space is not meant to be an endorsement of any product, company or services by the HOA or Board. .

DanielL3 (Louisiana)
Posts: 65
Posted:
Thanks to all for comments

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