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ChrissyB (Florida)
Posts: 4
Posted:
Can our HOA give HOA funded prizes in bingo games? Our HOA currently offers $25 gift cards for certain things. Is this legal? We are in Florida.
MichaelT21 (Arkansas)
Posts: 501
Posted:
Quote:
Posted By ChrissyB on 05/27/2022 6:23 AM
Can our HOA give HOA funded prizes in bingo games? Our HOA currently offers $25 gift cards for certain things. Is this legal? We are in Florida.

It depends. Are you charging the homeowners to participate in the bingo game, and they pay to compete for a prize? Without a license, this probably is not legal. Charities that are 501c3 can get away with it often but your HOA is not a 501c3 and thus more restricted.

If you are just giving the prize away without charging admission or to play, then you don't have to worry about the raffle rules. You just have to be sure that your CC&Rs allow you to use homeowner dollars for prizes. I probably would not recommend this on a frequent basis but perhaps it makes sense as a once per year community building activity.
ThadC2 (Florida)
Posts: 820
Posted:
our HOA gives away $100 visa gift cards for best decorated house, filling our surveys and coming to annual meetings. It works decent to improve turnout. but so does a sign saying you are going to increase dues to install a pool
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By ChrissyB on 05/27/2022 6:23 AM
Can our HOA give HOA funded prizes in bingo games? Our HOA currently offers $25 gift cards for certain things. Is this legal? We are in Florida.
Some here at HOATalk argue that such games with gift cards for prizes come under the category of serving the general welfare of the HOA, and so is allowed under the Declaration or Bylaws. Others here say that either the Declaration, Bylaws or statute must authorize a HOA expense more specifically than 'for the general welfare' for the expense to be appropriate for a board to incur.

If I lived at this HOA, I would resent the board taking owners' hard earned assessment dollars and spending these dollars on prizes for games.

If this board has so much time on its hands that it can tarry over organizing game nights, then I think the directors should consider asking a volunteer, non-HOA social committee to go out and solicit prizes from local businesses. Then at least the money for prizes is not coming out of owners' pockets.
SteveH35 (Washington)
Posts: 339
Posted:
Quote:
Posted By AugustinD on 05/27/2022 6:34 AM
Posted By ChrissyB on 05/27/2022 6:23 AM
Can our HOA give HOA funded prizes in bingo games? Our HOA currently offers $25 gift cards for certain things. Is this legal? We are in Florida.
Some here at HOATalk argue that such games with gift cards for prizes come under the category of serving the general welfare of the HOA, and so is allowed under the Declaration or Bylaws. Others here say that either the Declaration, Bylaws or statute must authorize a HOA expense more specifically than 'for the general welfare' for the expense to be appropriate for a board to incur.

If I lived at this HOA, I would resent the board taking owners' hard earned assessment dollars and spending these dollars on prizes for games.

If this board has so much time on its hands that it can tarry over organizing game nights, then I think the directors should consider asking a volunteer, non-HOA social committee to go out and solicit prizes from local businesses. Then at least the money for prizes is not coming out of owners' pockets.

[FACE SLAP] ...Augustin has brought us full circle to CICs asking vendors and unrelated businesses to become sponsors.

In complete disagreement with Augustin, CICs that have the legal authority to provide for discretionary spending can and should use that authority in a reasonable way. Here are a couple examples:

1) We're wrapping up a new satisfaction survey. To encourage participation, we offered 4x $25 gift cards to randomly selected participants.
2) We offer juice and doughnuts in the lobby every few months.
3) We have one or two low-key "social events" for residents every year. These are low-key enough that they aren't even catered, but we do supply some food and beverage to encourage participation.

Overall impact to our budget: about two tenths of one percent. Overall impact to promoting a sense of community: outsized.

Regards,
Steve
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By SteveH35 on 05/27/2022 6:50 AM
Augustin has brought us full circle to CICs asking vendors and unrelated businesses to become sponsors.
?

Quote:
Posted By AugustinD on 05/27/2022 6:34 AM
If this board has so much time on its hands that it can tarry over organizing game nights, then I think the directors should consider asking a volunteer, non-HOA social committee to go out and solicit prizes from local businesses.
As for the rest: The slippery slope is my concern. Boards are so happy to not do the work of actually reading their HOA's governing documents and the pertinent state statutes. Next thing you know the Board is arranging for construction of a new, previously non-existent pickleball court because the reserve account has hundreds of thousands of dollars in it. Never mind that this year's reserve study says the reserve account is still underfunded.
SteveH35 (Washington)
Posts: 339
Posted:
Quote:
Posted By AugustinD on 05/27/2022 6:57 AM
Posted By SteveH35 on 05/27/2022 6:50 AM
Augustin has brought us full circle to CICs asking vendors and unrelated businesses to become sponsors.
?

Quote:
Posted By AugustinD on 05/27/2022 6:34 AM
If this board has so much time on its hands that it can tarry over organizing game nights, then I think the directors should consider asking a volunteer, non-HOA social committee to go out and solicit prizes from local businesses.
As for the rest: The slippery slope is my concern. Boards are so happy to not do the work of actually reading their HOA's governing documents and the pertinent state statutes. Next thing you know the Board is arranging for construction of a new, previously non-existent pickleball court because the reserve account has hundreds of thousands of dollars in it. Never mind that this year's reserve study says the reserve account is still underfunded.

Ah, I didn't quite catch that Augustin. To your point though, what does it mean for the "offical" volunteer directors to ask a "non-HOA social committee"? Is that a group of homeowners that aren't officially recognized being asked by an officially recognized set of people to do something that makes it sound less official?

I'm definitely in the camp of CICs conduct their own business on their own dime, period. Anyone anywhere can solicit sponsorships for anything, but CICs should not be in the business of doing this as it does lead to a slippery slope. What you suggest as a slippery slope of capital improvements is about 10 to the 18th power removed from reasonable discretionary spending for community-building activities.

Regards,
Steve
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By SteveH35 on 05/27/2022 7:03 AM
To your point though, what does it mean for the "offical" volunteer directors to ask a "non-HOA social committee"? Is that a group of homeowners that aren't officially recognized being asked by an officially recognized set of people to do something that makes it sound less official?
This is the lawful board telling owners to shove off when it comes to asking the HOA to pay for game prizes.

I think what's most important is that many HOAs/COAs do what the OP does all the time.

The OP asked for opinions. She has mine. She has yours. She will get others. If I were on this board and lost the vote on this, oh well. Forward to fixing the pool pump, interviewing prospective managers, deciding on a date when all directors can meet for a hearing because Owner Brown has a junk car parked in his driveway and says he should be allowed to keep it, et cetera.
MichaelT21 (Arkansas)
Posts: 501
Posted:
All,

I think you are bringing an argument from a former thread into this thread, which is probably confusing the OP. I also think you are missing the elephant in the room.

More than likely, people have to pay to enter the bingo game in the hopes of winning a prize, which is gambling, and this is not something the HOA can sponsor without a gambling license.
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By MichaelT21 on 05/27/2022 7:19 AM
I also think you are missing the elephant in the room.

More than likely, people have to pay to enter the bingo game in the hopes of winning a prize, which is gambling, and this is not something the HOA can sponsor without a gambling license.
For Florida, are you sure? Positive? 100%?

See https://www.floridacondohoalawblog.com/2021/05/27/should-an-association-allow-its-clubhouse-or-other-common-area-to-be-used-for-gambling/ , among other sites.
SteveH35 (Washington)
Posts: 339
Posted:
Quote:
Posted By MichaelT21 on 05/27/2022 7:19 AM
All, More than likely, people have to pay to enter the bingo game in the hopes of winning a prize, which is gambling, and this is not something the HOA can sponsor without a gambling license.

What I read from the OP's post is that the HOA is putting on a "bingo event" funded by its annual budget. Part of the event includes rewarding participants with relatively small $25 prizes. Not sure there's any "gambling" happening and I'm also not sure that it's worth worry about in the grand scheme of all the really important things that CICs need to tackle like dealing with blistering insurance costs (especially in Florida!), planning for the future, maintaining, repairing and replacing infrastructure, getting their reserve studies in order, holding fair elections, ad infinitum.

Regards,
Steve
DavidG45 (Delaware)
Posts: 994
Posted:
Quote:
Posted By ChrissyB on 05/27/2022 6:23 AM
Can our HOA give HOA funded prizes in bingo games? Our HOA currently offers $25 gift cards for certain things. Is this legal? We are in Florida.

I see this bantered about a lot. I can certainly see an argument made that this is not technically legal, nor is charging a buck for a bingo card then using the money for prizes. On the other hand, hundreds of HOAs do this every week and I don't think the state police are running around shutting these games down and throwing grey-haired social committee volunteers in jail. I also haven't heard of a resident suing the board to stop bingo games.

However, I think a better alternative is to let social committee members go to local businesses and ask for gift cards. Our social committee does that all the time. The bingo game is free, and winners get a gift card that was free.

Being in a 55+, where most people are here specifically for the social aspect, I might have a different view than others. But I see social events as the heart and soul of our community.

KerryL1 (California)
Posts: 14,550
Posted:
I'm with David, Thad, Steve and anyone else who says, let them be. There's also no indication that the Board itself is organizing such games and spending any of their volunteer time on them. And if they/a director are involved, that's no indication that they are not active in other aspects of their duties.

Steve wrote: "Overall impact to our budget: about two tenths of one percent. Overall impact to promoting a sense of community: outsized."

My favorite property managers -- worked with maybe 6 over time--are those who are able to oversee the big picture and simultaneously appreciate and support small efforts. These are my favorite board members too.

Very recently a couple of board members promoted and got Board approval for a weekly (for 6 weeks) $100 raffle for owners who voted on our restated CC&Rs & Bylaws, which needed 67% approval. These two members designed a raffle fish bowl decorated with a St. Patrick's Day theme to fit with such a party put on by our Social Committee, and "thermometer" fliers for out elevators showing voting progress. These same two, meanwhile, are overseeing a huge renovation project here AND the purchase/installation of EV charging stations for those wanting them in our underground parking levels.

My point is, there are motivated volunteers who can keep more than one ball -- of different sizes- in the air at a time and are good at it.

ChrissyB (Florida)
Posts: 4
Posted:
In Florida, HOAs are allowed to host bingo games (for money) in their clubhouse. Our board president who is also chair of the social committee is currently using association funds to give out gift cards to the person that covers a full card. (Or something if that nature) I believe I had read that although the gambling itself was allowed, the board was not allowed to spend association funds for prizes or things of that nature.

I first want to ensure that what they’re doing is legal. (All it takes is one person to report them and then the fun community event is over) Additionally, all of the gift cards total around $1500/yr which is a very large chunk of the social budget when only around 5 or so people attend the bingo events.

I appreciate hearing all of your suggestions and especially love the idea of asking local businesses to donate gift cards.
BillD16 (Texas)
Posts: 971
Posted:
Google turned this up, which I thought was a fascinating summary of Florida law on lotteries and so forth:

https://www.rpfoley.com/illegal-lottery-or-raffle-crimes-florida-statute-849-09.html

The Usual Disclaimers: I'm not a lawyer, I have no relationship with the website; I just thought it was a nice resource.

BillD

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”
MichaelT21 (Arkansas)
Posts: 501
Posted:
OK, so the question is "Can HOA funds to be used to provide prizes at bingo night".

I don't know your CC&Rs or your state laws, so I can't say if it is illegal or not. However, $1500 is a lot of money, and especially a lot of money for activities that are sparesly attended.

We spent $375 on an easter egg hunt which had 300 people attend and participate. That was money well spent. We are doing a summer movie night which will cost about $1200, but we had sponsors cover 100% of the cost so homeowners don't pay anything. (The Association is kicking in $100 to keep it an HOA-related event). We do National Night Out but spend less than $200 on it and it gets about 100 people in attendance.

So $1500 for an activity that attracts no more than 5, and usually the same 5, would be out of line for our association.
BillD16 (Texas)
Posts: 971
Posted:
Quote:
Posted By AugustinD on 05/27/2022 7:28 AM
Posted By MichaelT21 on 05/27/2022 7:19 AM
I also think you are missing the elephant in the room.

More than likely, people have to pay to enter the bingo game in the hopes of winning a prize, which is gambling, and this is not something the HOA can sponsor without a gambling license.
For Florida, are you sure? Positive? 100%?

See https://www.floridacondohoalawblog.com/2021/05/27/should-an-association-allow-its-clubhouse-or-other-common-area-to-be-used-for-gambling/ , among other sites.

*chuckle* I think that the real 'trick' to answering OP's question is that - whatever the answer is - it's going to have a uniquely Floridian flavor to it.

BillD

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”
MichaelT21 (Arkansas)
Posts: 501
Posted:
Quote:
Posted By BillD16 on 05/27/2022 3:34 PM
Posted By AugustinD on 05/27/2022 7:28 AM
Posted By MichaelT21 on 05/27/2022 7:19 AM
I also think you are missing the elephant in the room.

More than likely, people have to pay to enter the bingo game in the hopes of winning a prize, which is gambling, and this is not something the HOA can sponsor without a gambling license.
For Florida, are you sure? Positive? 100%?

See https://www.floridacondohoalawblog.com/2021/05/27/should-an-association-allow-its-clubhouse-or-other-common-area-to-be-used-for-gambling/ , among other sites.


*chuckle* I think that the real 'trick' to answering OP's question is that - whatever the answer is - it's going to have a uniquely Floridian flavor to it.

BillD

If a person wants state specific legal advice, they should contact their association attorney.

There about 5 or 10 of us and 50 states. We don't have time to research rules in every state, and we aren't knowledgable about the nuances of every state. Thus, our answers are not state specific.
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By MichaelT21 on 05/27/2022 3:43 PM
There about 5 or 10 of us and 50 states. We don't have time to research rules in every state, and we aren't knowledgable about the nuances of every state.
F

KerryL1 (California)
Posts: 14,550
Posted:
Are you on the Board, Chrissy? I appreciate the real-life details. I retract everything I wrote above in this case. The Board , imo, is wrong to fund that much $$ to entertain 5 residents every so often. This does not serve any kind of "community-building" function an is of no benefit to your HOA that I can see.
BillD16 (Texas)
Posts: 971
Posted:
Quote:
Posted By MichaelT21 on 05/27/2022 3:43 PM

If a person wants state specific legal advice, they should contact their association attorney.

There about 5 or 10 of us and 50 states. We don't have time to research rules in every state, and we aren't knowledgable about the nuances of every state. Thus, our answers are not state specific.

Yeah! And I’ll bet hardly anyone in Florida plays Bingo. Yeesh.

BillD

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By MichaelT21 on 05/27/2022 7:19 AM
More than likely, people have to pay to enter the bingo game in the hopes of winning a prize, which is gambling, and this is not something the HOA can sponsor without a gambling license.
In Washington state, HOAs/COAs may conduct bingo games without a license as long as certain conditions are met. See

https://apps.leg.wa.gov/rcw/default.aspx?cite=9.46.0321
MichaelT21 (Arkansas)
Posts: 501
Posted:
Quote:
Posted By AugustinD on 05/28/2022 7:18 AM
Posted By MichaelT21 on 05/27/2022 7:19 AM
More than likely, people have to pay to enter the bingo game in the hopes of winning a prize, which is gambling, and this is not something the HOA can sponsor without a gambling license.
In Washington state, HOAs/COAs may conduct bingo games without a license as long as certain conditions are met. See

https://apps.leg.wa.gov/rcw/default.aspx?cite=9.46.0321

Note that the events can be done no more than twice per year in Washington State.
SteveH35 (Washington)
Posts: 339
Posted:
Quote:
Posted By AugustinD on 05/28/2022 7:18 AM
Posted By MichaelT21 on 05/27/2022 7:19 AM
More than likely, people have to pay to enter the bingo game in the hopes of winning a prize, which is gambling, and this is not something the HOA can sponsor without a gambling license.
In Washington state, HOAs/COAs may conduct bingo games without a license as long as certain conditions are met. See https://apps.leg.wa.gov/rcw/default.aspx?cite=9.46.0321

I believe the statute is moot if there are no BINGO cards being sold, but don't quote me on that.
SteveH35 (Washington)
Posts: 339
Posted:
Quote:
Posted By SteveH35 on 05/28/2022 10:42 AM
Posted By AugustinD on 05/28/2022 7:18 AM
Posted By MichaelT21 on 05/27/2022 7:19 AM
More than likely, people have to pay to enter the bingo game in the hopes of winning a prize, which is gambling, and this is not something the HOA can sponsor without a gambling license.
In Washington state, HOAs/COAs may conduct bingo games without a license as long as certain conditions are met. See https://apps.leg.wa.gov/rcw/default.aspx?cite=9.46.0321

I believe the statute is moot if there are no BINGO cards being sold, but don't quote me on that.

FURTHERMORE, in Florida, the statue is even more clear about permitted uses. It clearly statutes the following. CICs in Florida are not considered exempt, but they're also not conducting a "Bingo game" if participants are not paying a "sum of money for the use of one or more bingo cards."

We all need to GET REAL about what's being discussed here. A CIC is using discretionary funds to provide for community engagement activities. Is $1,500 too much to spend to engage five residents? Perhaps. Is it illegal? Probably not.

Florida Statute 849.0931 Bingo authorized; conditions for conduct; permitted uses of proceeds; limitations
(a) “Bingo game” means and refers to the activity, commonly known as “bingo,” in which participants pay a sum of money for the use of one or more bingo cards. When the game commences, numbers are drawn by chance, one by one, and announced. The players cover or mark those numbers on the bingo cards which they have purchased until a player receives a given order of numbers in sequence that has been preannounced for that particular game. This player calls out “bingo” and is declared the winner of a predetermined prize. More than one game may be played upon a bingo card, and numbers called for one game may be used for a succeeding game or games.
(b) “Bingo card” means and refers to the flat piece of paper or thin pasteboard employed by players engaged in the game of bingo. The bingo card shall have not fewer than 24 playing numbers printed on it. These playing numbers shall range from 1 through 75, inclusive. More than one set of bingo numbers may be printed on any single piece of paper.
(c) “Charitable, nonprofit, or veterans’ organization” means an organization which has qualified for exemption from federal income tax as an exempt organization under the provisions of s. 501(c) of the Internal Revenue Code of 1954 or s. 528 of the Internal Revenue Code of 1986, as amended; which is engaged in charitable, civic, community, benevolent, religious, or scholastic works or other similar activities; and which has been in existence and active for a period of 3 years or more.


Regards,
Steve
LetA (Nevada)
Posts: 2,679
Posted:
I am going to assume you are in a senior community. I would consult with the local AARP chapter, perhaps solicit donations from places that seniors frequent. meal cards, restaurants etc.
business love free advertising.

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