Prizes for attending vendor training

Started by MichaelT21 • 11 replies • 268 views

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MichaelT21 (Arkansas)
Posts: 200

Posted:

Our property manager has coordinated with prospective vendors to offer a "training" session. They are giving away raffle prizes to a few that will attend. Curious if this is legal?

I checked our by-laws and nothing prohibits Board members from receiving renumeration from vendors (kickbacks) which suprised me, but I am thinking there must be some policy against it.

Any ideas?

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Just a dumb idea to me overall. The vendors aren't really going to receive any additional business from anyone in attendance are they? Seems a reason just to get free stuff. Plus this is on your Property Management bill. Why is the PM even doing this? The HOA should be doing its own sessions IMO. What is wrong with the HOA having their own "workshops" to talk over the use of their rules/documents?

Former HOA President

JohnT38 (South Carolina)
Posts: 1,631

Posted:

Quote:

Posted By MichaelT21 on 03/27/2023 10:33 AM
Our property manager has coordinated with prospective vendors to offer a "training" session. They are giving away raffle prizes to a few that will attend. Curious if this is legal?

I checked our by-laws and nothing prohibits Board members from receiving renumeration from vendors (kickbacks) which suprised me, but I am thinking there must be some policy against it.

Any ideas?

Take the highroad and just don't do it. This way, there is no chance of blowback, you don't need to spend any time on the issue and you don't need to spend time checking with a lawyer.

TimB4 (Tennessee)
Posts: 21,059

Posted:

The PM and vendors are certainly able to use their own money how they see fit.

Regarding legality, you should solicit a legal opinion from a local attorney.

If you want general knowledge, here are the likely applicable statute from Washington State:

RCW 74.09.240

Personally, I don't think what you describe is the same thing as a bribe or kickback.
Others may or may not disagree.

I think the simple answer is:

If you disagree with the idea of a raffle to increase attendees, simply don't enter the raffle but still attend for the knowledge.

ElleN (Idaho)
Posts: 4,420

Posted:

I think the board ought to tell the PM that raffle prizes must not be offered. This is because of what Washington Statutes say about nonprofit corporation conflicts of interest. See https://app.leg.wa.gov/RCW/default.aspx?cite=24.03A.615

I see the raffle prizes as coming at least partly from the PM. Which means directors who participate in the training (and having a chance to win a raffle prize) cannot vote on contracts involving the PM.

MaxB4
Posts: 3,513

Posted:

Quote:

Posted By ElleN on 03/27/2023 11:50 AM
I think the board ought to tell the PM that raffle prizes must not be offered. This is because of what Washington Statutes say about nonprofit corporation conflicts of interest. See https://app.leg.wa.gov/RCW/default.aspx?cite=24.03A.615

I see the raffle prizes as coming at least partly from the PM. Which means directors who participate in the training (and having a chance to win a raffle prize) cannot vote on contracts involving the PM.

Bunch of BS

ND (PA)
Posts: 792

Posted:

Depends. Are the prizes any good?

CathyA3 (Ohio)
Posts: 6,299

Posted:

Who is paying for these "gifts"? I assume it's the vendors.

My problem with it - aside from the poor optics - is that it can create an expectation of a quid pro quo. I think boards and vendors should expect that the association will pay a fair price for a quality service, and there shouldn't be anything muddying the waters.

FWIW, the top community management company in our area has a strict policy forbidding their employees from accepting any sort of gift from any of the people/companies they do business with. That includes clients and vendors, and it even applies to cheap junk that's worth less than a dollar. Seems like an excellent policy for any professional.

MaxB4
Posts: 3,513

Posted:

I have played in a number of CAI Golf tournaments over the years. Each of those tournaments is sponsored by vendors, which some associations or managers may never need or use. The tournament usually has a lunch or dinner depending on when the tournament ends and there is a raffle. I am sure that if it was illegal or unethical, law firms who are involved as sponsors would say something.

WendyM5 (North Carolina)
Posts: 1,522

Posted:

Quote:

Posted By MaxB4 on 03/27/2023 1:14 PM
I am sure that if it was illegal or unethical, law firms who are involved as sponsors would say something.

LOL!!!!!
yeah cause lawyers are known for high ethics. lol.

vis ta vie

CathyA3 (Ohio)
Posts: 6,299

Posted:

I think "legal" is too low a bar. Too many homeowners are willing to believe that the board is made up of unethical ignoramuses, and it seems counterproductive to give these folks any ammo if you don't need to. Really, are those prizes worth the possible hit to your reputation?

JohnT38 (South Carolina)
Posts: 1,631

Posted:

Quote:

Posted By CathyA3 on 03/28/2023 5:33 AM
I think "legal" is too low a bar. Too many homeowners are willing to believe that the board is made up of unethical ignoramuses, and it seems counterproductive to give these folks any ammo if you don't need to. Really, are those prizes worth the possible hit to your reputation?

Exactly, this issue is not worth spending time on. Just don't do it and spend your energy on things that matter.

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