Independent Social Committee

Until now our Social Committee has been a chartered committee sponsored by the HOA. The budget is very small, just $300 a year, but through raffle tickets and direct donations they spend $1500 to $2000 for events. I have heard of other communities where the Social Committee is an independent organization unaffiliated with the HOA. I think our BOD would be happy with this arrangement, as would the Social Committee.

I am curious to hear from other communities that have done this. In particular, currently our clubhouse rules indicate that homeowners cannot organize large events (more than 20 residents) as a way of making sure individuals don't "take over" the clubhouse or pool with a big party to which the whole community was not invited. It seems we would have to get rid of that rule if the independent Social Committee were to try to organize events.

Thoughts? Suggestions?

The rule of thumb is that in order to be classified as a 501c3 charity, the charity must serve "the public". Any organization that benefits a only select group of individuals (ie, residents of an HOA) cannot be classified this way. And you certainly don't want them opening up HOA facilities to the public: liability, ADA compliance, and other gotchas lurk.

If you make the social committee independent, it must be completely independent and not use HOA funds. However, there is no reason that they would be exempt from the HOA's CC&Rs and rules. If you limit the size of gatherings so that a group can't take over the clubhouse, then it should apply to this group as well. Otherwise you'll essentially granting this so-called independent group a pass on obeying the rules, and I don't believe you can do that. Even if you could, it will let to conflict.

I don't think the committee should be completely independent of the association, especially if they use association resources like the clubhouse. If this committee's primary purpose is to sponsor activities that promote community spirit and harmony, they should be able to do that within the community rules. That wouldn't stop them from taking the association's name out of their group, getting their own insurance, and then doing whatever they want in whatever location they can find, like Le Diner en Blanc.

As for the pool, if this group wanted to sponsor a large back-to-school pool party for the entire neighborhood, I don't think that's the same as, say, Sally and John throwing a pool party at the clubhouse on Labor Day, but only people living in their cul-de-sac can use it. The back-to-school shindig is a one-shot deal, where Sally and John's throwdown is the type of situation your rule is designed to prevent.

That said, you could also enact policies where the association would charge considerably more if people want to rent for an event occurring on a holiday. As a practical matter anyone who had to clean the clubhouse before or after the event, provide security, etc. would want overtime, so why should the sponsoring homeowner pick up the tab, along with the appropriate insurance, if warranted?