HOA giving to a Church

Giving such money is perfectly legal under most state statutes. The question is what is the purpose?

Corporate charity is an oxymoron for the most part. Corporate "giving" serves the best interest of the corporation.

I think the board ought to be queried as to the benefit that obtains from such giving? What is the direct value to the homeowners association or community from such "gifts."

I am not saying that there is no value, but it needs to be disclosed.

Based on this information, I would advise you that this was not a good expenditure of association funds.

However, if it went to a, say, Little League team in which several association families participated, then it might be something to consider. Or if it went to the PTA of the local elementary school at which the association held board meetings, that might not be beyond the pale.

There is value to members to have the homeowners association be recognized as a good member of the larger community.

Interesting points. Thanks!

I'd like to see the wording in Tam's docs allowing for charitable contributions, and who can decide to whom same are made, and in what amounts....if that wording does exist.

Tamara,
I guess that I am the only one who feels that this is NOT the thing to do. Money--NEVER!!! Give Turkeys, or donate time but never give it to just 1 church. A whole new can of worms just got opened.

Donna, never say never and I will agree with you. This decision was not a wise one for sure, yet their may be times when supporting a church sponsored program may be in the best interest of the association.

George,

I will NEVER EVER SAY NEVER AGAIN. How about "ONLY UNDER EXTREME CIRCUMSTANCES, SHALL, CAN , SHOULD OR COULD " (Geez, I don't know what I'm talking about now)

I think you run into some potential problems when you donate money to a church program of any type. First, what will the reaction be when you donate to an organization that is say Jewish? If that won't fly, then a Christian religious organization is also out.

But the main thing is the stated purpose of the assessments. For my HOA, the funds are to be used to the benefit of the neighborhood, members, and residents. Now the church you abut to could be the exception since it is essentially part of the neighborhood.

Kirk is wrong on this one. I may be splitting hairs here, but I do not see a payment to fund a church sponsored secular program or any other charitable organization as a "donation" if the association receives some benefit from it. The benefit may be only good public relations, but that is an important benefit. Thus, it is not a contribution, but it can be a proper expense for building good community relations.

There is a huge difference, folks, between helping a church youth group community clean up program and helping finance a religious activity.

For over 10 years I was the CEO for a charitable, non profit that offered a food cupboard, holiday programs, back to school program, assisted with financial aid, and provided free clothing for families in need and single adults.

I NEVER recall a check coming in that was drawn from an HOA's account - however, many times residents from HOAs would conduct food or school supplies drives and often there would be checks in the packages, written by individual homeowners.

I can't imagine an HOA writing a check for an indivudual church or even a charity UNLESS it was leftover funds in the social budget. But I never even saw that in my years there.

Mary, you are missing the point.

A payment with significant benefit to the homeowners association is not a charitable contribution. It is payment for benefits received. It is just like every other expense. You are getting hung up on the type of organization providing the benefit, rather than the benefit itself. That's crazy.

You can disagree about the value of the benefit received, or its desirability. That is a a judgment that the board makes. Good community/public relations is something valuable to any organization, as I wrote earlier. Just because an organization is considered a charitable organization, does not mean every payment to it is a contribution. That's fallacious.

With all that said, I don't think this particular payment for feeding needy church members was a wise decision by the board.

I still stand by that with HOA's and today's current economy? Charity needs to be begin at home..... you can't tell me that this hoa has so much $$ it must toss it awayside? If so I know someone in Washington who can take that extra $300 off you hands. no prob

I agree this should not have been done. I also agree with what George say's about recognition and good standing in the larger community. Our current Board can look into less self serving ways to do this and help the goodwill of our "own" and the community that surrounds us. I am still unsure of what our gov. documents say about this, but I will check that today.

This was a very self serving BOD's and there are plenty of examples. I recon that is why they bailed when I got back on.

I am still not sure today where they drew the money from. We do not have this on the budget. Possibly they drew it from the fence funds, since they took that off the budget????

Mary, here is how I stand:

I do not believe in giving to one specific church as we have a lot of diversity in our community and the community at large. I think this could reflect poorly on our community. I think charity should begin at home and if money was given from the the neighborhood fund, it should of gone to families in need that live here:

Example, we have had three instances where I rallied community donations from going door to door to help families here. That way people could give what they want. We had one boy shoot another, accidentally. When I collected the money in my mind it was going to both families. My fellow majority neighbors who gave were stern that it should go to the boy's family who was shot. I listened and that is where their funds, that I collected door to door went. Another woman lost her husband, he was hit by a car in front of our neighborhood. I did the same. Third one, I was played by an addict (known after the fact) that had young children. I collected monies for them to have a good Christmas.

I believe that it is good for the community to be seen in good standing with the community at large, Georges philosophy. Be that through a little league, the community library....some common ground....I don't know. I would poll the community and take the majority vote. However, on the polling chart I would not include a Churches name or a political party. If people felt passionately about giving to a Church they could write it in.

Well, since I asked for people's thoughts on this. I do not want to "engage in dispute" what I asked for. I agree with George's reasoning for giving, I will not challenge his philosophy on how that is done. Honestly, what George does does not affect me or my community. If he were on my Board and wanted to give to his Church I would vote no.

I respect all thoughts, philosophy and opinions on this forum.

Thanks, Tamara, but I would never ask a homeowners association to donate to my congregation. There is too much self-interest involved.

As I posted here earlier regarding the situation you described, "Based on this information, I would advise you that this was not a good expenditure of association funds." And, "This decision was not a wise one for sure, yet their may be times when supporting a church sponsored program may be in the best interest of the association." Were I on the board that made this decision, I would have joined you and voted no.

Again, where I think people fall down here is thinking that every payment to a church is a contribution. If there is significant value received in return for the payment, it is not a contribution, but payment for services. I stand behind all I have posted.

Again, it not disagreement on philosophy. It is a an issue of factual information and its application that can be resolved by independent authorities.

"Goodwill as a term was originally used to reflect the fact that an ongoing business had some "intrinsic value" beyond its assets, such as the reputation the firm enjoyed with its clients." (See Statement 142 of the Financial Accounting Standards Board, "Goodwill and other Intangible Assets," issued June 2001)

Goodwill shows up on the balance sheet not a profit and loss statement. It is not a term I would use here, since it has a specific accounting meaning.

I got that from your post.

Maybe you guys should quit hyjacking my thread and take your arguments to another place. JK! HAVE A GOOD ONE!