Volunteer Board Members -Should They Receive Compensation?

We have discussed this issue in a previous post. It is probably not worth rehashing. However, a just posted (November 4) article on the topic under California law may be of some interest.

Volunteer Board Members -Should They Receive Compensation?
http://www.communityassociations.net/cacondoguru/

I think this quotation accurately captures the gist of the post:

The "volunteer" board members accepting compensation lose valuable protections that exist in the law for [bona fide] volunteer board members. They are no longer "volunteers". These protections insulate board members from personal liability - and the compensation is often not worth the loss of that protection.

I do not generally recommend that an HOA compensate board members for services the board should be providing; however, I certainly understand why some HOAs do it. It often results in (1) a savings over hiring outside services, and (2) having someone to do the work who has a personal interest in the HOA.

However, it often also has some negative effects. In some cases it results in paying for services that require specialized knowledge or training, without getting the benefit of specialized knowledge or training.

No board member should receive compensation simply for serving on the HOA Board when the governing documents say that board members shall not receive compensation.

Our docs specifically allow the BOD to approve compensation to the Sec or Tres (in both cases, moi). We have interpreted this to cover only work outside the scope of the listed S/T duties. This has come in handy since we have become self-managed, as in, nobody else to handle some things. Thus far, all these “fees” have dealt with landscaping issues, most of that related to the successful resolution of our Maple Tree claim (+$4K). $50 x 6 hours (actually more, but I rounded down a lot). Could we have retained an attorney for $+250/hr for the same work? Sure. But (I’m guessing here), attorney would have probably billed us more than 6 hours, would nonetheless have required my time and assistance, and might not have prevailed.

But paying Prez to do Prez stuff or S/T to do the regular S/T stuff? If an HOA has a PM, I’d think not. Though every HOA situation is unique, so ought to be looked at on a case-by-case basis, and the guidance provided in the docs followed.

Susan,

Had to look it up. Our D&O covers elected directors and officers of the HOA. There is no exclusion re: paid vs. purely volunteered actions.

I'm sure we'd get TONS of people running for the Board if they knew they'd get PAID for it! Of course that would be the only reason they'd run. As it is now, very few people want to run because it IS a volunteer position.

A lot of board members get verbally beat up all the time for the "volunteer" job they're doing. Imagine the abuse they'd receive for the "paid" position they have.

No thanks. I'll keep my unpaid position.