Member funded "Sunshine Fund"

No, you're not being unreasonable. It's fine to help neighbors, but HOA money is intended for maintenance and improvements of the common areas, and for association operations (e.g. paying for master insurance or a property manager). There's no reason this committee can't send out notices when someone has an issue and ask for donations. You can even post information on your community website (if you have one)on local government and non-profit agencies that provide assistance.

I agree with Shelia and Barbara. A line item as proposed is unlawful.

I do think this is a chance to educate, gently. This includes educating the three board members who think that what the committee proposes is okay. The Board should write the committee and say simply: Dear Committee, The Board understands that the Committee wishes to help residents in financial need using a portion of others' HOA assessment. The Board believes your intentions are commendable. However, Florida corporate statutes, HOA statutes, and the HOA's Declaration only permit the HOA to spend the income from assessments on infrastructure and HOA management. Thank you, HOA Board

Jerry,
All of the above answers are perfectly correct. I think that this committee needs to stay in their lane and continue to do the Cards or letter items only. Anything else would be a very slippery slope to go down. Here are some reasons why.

1) Who makes the decision on what need gets the support?
2) How do you prove that the money is going to pay the bills it is intended to pay?
3) The board would certainly be judged by many sides if the committee ever gets a case wrong.
4) This sounds too much like a Welfare plan to me. That system does not work very well for most and can enable people to look for more assistance down the road.

What would happen if the Board suddenly was dominated by a group of individuals that all came from a Religious group that asks for tithing? You be ok if they gave 10% of the HOA funds to the Church?

I want to expand on what Mark provided.

Expect to have issues when the first request is denied.
All sorts of accusations could be levied at the board and committee.

Don't forget the tax implications for the Association and/or the receiver of any funds.

Tim reminded me of something else. If this committee is officially recognized by the HOA, then the board is accountable for its actions whether or not any HOA funds are being used. So the board needs to tell them to stop and to stick to the birthday cards and such. If some committee members persist, the board should thank them for their service and remove them from the committee. If this group of committee members wants to get together and do something on their own, the board should make it clear that this is a private group that does not represent the HOA in any way.

It's SUCH a bad idea.

For one thing, there's a pretty good chance that someone who is having financial difficulties has bigger issues than any group of well-meaning neighbors can deal with. The sooner the person gets in contact with organizations that can really help, the sooner he'll be able to get back on track.

Second, I always assume that if someone tells me something personal that the information should be kept confidential. If an owner hears about someone who's having money problems and then goes and blabs it to others, then the owner is acting in his own self interest, no matter how much he may dress it up as "sunshine" and "good deeds". Not praiseworthy in the least.

A HOA is a not for profit but NOT a charitable one. The money is to be used for operational/maintenance expenses ONLY. Gift cards to board members, coffee/cookies at meetings, or assisting owners is NOT in the budget. Fundraising is frowned upon. HOA's income is from dues collections. Otherwise, your fundraising efforts could be subjected to taxation.

That reminds me of a situation we had. A member tragically died in a car accident. Other members wanted us to "skip" that month for collecting dues from that home. It was out of respect and lessen the burden on the family.

However, the reality is that was a bad idea. It was better that individual volunteered to gather funds to pay for the dues. Why? That is because it's a LOOOONG Probate process. It's not unusual to be not paid for 6 months or more during this process. Which our policy was to Lien at 6 months behind. Unless of course of special circumstances like this.

If the person who ended up with the house still did not pay dues, what point would we start? Miss a month? That month couldn't be included in the lien process if we told them they could "skip" it.

So if you want to establish helping people pay their dues, then it is an INDIVIDUAL choice. It doesn't matter who writes the checks to pay the dues. Just those dues get paid.