Bingo Finances vs HOA finances - Florida

Hello all! I'm new to this board and need some clarification - to what extent (if any) can Bingo proceeds be combined with HOA finances? Our HOA "sponsors" a weekly Bingo game. A "raffle" is held at each one, and half is given to the HOA as "HOA Share". It seems that this may not be allowed, since an HOA is not considered a "charitable" organization. It also says that all expenses (cards, raffle tickets, popcorn, etc.) must be paid out of Bingo profits BEFORE the remainder is given to a charitable organization. Does Bingo have to be a completely separate entity financially? Our HOA is a NOT FOR PROFIT and in reading Florida Statute 849, Section 0931, it seems that all expenses incurred by the Bingo committee must be paid out of Bingo funds, not HOA funds. Need some facts to present to our President. Thanks!

Thanks Melissa! That is my feeling as well, but our President will take some real convincing. Sounds like the Bingo committee needs a solid business plan for supplies and when they are needed, so that they can be deducted from Bingo proceeds, NOT the HOA. It seems the way it has been done in the past (before I became a board member) is illegal, as well as the way I've been told to do it.

FYI, in an attempt to revitalize our HOA after the Covid Hiatus, I used my own $$ to purchase bingo cards, poster signs, etc. The prizes were donations from attendees. I used no community funds and put this event on as a neighbor/owner...not as a BOD event. We are 140 SFHs, no clubhouse. No money crossed hands! The prize table was a big hit; if donation wasn't selected, the doner took it home. It was a great summer event.

In addition, a 50/50 is held at each Bingo game (which is also considered gambling) and the other half is given to the HOA (which is not a charity). How do 50/50s fit into all this?

I don’t know Florida law, but in general I would not recommend an HOA hold bingo and definitely not combine bingo funds with HOA funds. You might consider at separate organization, HOA Entertainment, Inc, for this kind of stuff.

It's really pretty simple. It's legal in Florida for an HOA or COA to have bingo games (it says so right in FS 849.931). However, because HOAs and COAs are not IRS 501(c) non-profits/charities, they cannot keep the proceeds of the bingo games. All the proceeds must be distributed. So if the OP's HOA or COA is keeping any of the money beyond expenses, they are breaking the law unless they are donating the money to a real charity.

You could report this to Florida DBPR or to the attorney general's office, but unless it's a large amount of money, I doubt they will do anything. However, I would write a polite, facts only letter to the board and let them know they are breaking the law.

We do have bingo games every week in our HOA and it's a big activity. However, we give back all the proceeds in prize money. The HOA provides snacks (we are allowed to spend money from the budget on entertainment per our declaration).

Here it is from FS 849.031(4)

(4)The right of a condominium association, a cooperative association, a homeowners’ association as defined in s. 720.301, a mobile home owners’ association, a group of residents of a mobile home park as defined in chapter 723, or a group of residents of a mobile home park or recreational vehicle park as defined in chapter 513 to conduct bingo is conditioned upon the return of the net proceeds from such games to players in the form of prizes after having deducted the actual business expenses for such games for articles designed for and essential to the operation, conduct, and playing of bingo. Any net proceeds remaining after paying prizes may be donated by the association to a charitable, nonprofit, or veterans’ organization which is exempt from federal income tax under the provisions of s. 501(c) of the Internal Revenue Code to be used in such recipient organization’s charitable, civic, community, benevolent, religious, or scholastic works or similar activities or, in the alternative, such remaining proceeds shall be used as specified in subsection (3).