club house rental

Our by-laws say a lot owner is a member. A member, with his immediate family(resident)and guests, has a right to enjoyment of the common facilities. We allow clubhouse rentals by members for their private parties, etc.
Our club house was recently rented by a member for a relative who lives in another state who is arranging a local hich school reunion to be held in our clubhouse. I say this is a violation of both the by-laws and the rental policy becuase a high school reunion is not a private function of the member and the person arranging the high school reunion is not a resident(member). Am I off base?

Plus, a high school reunion can easily be positioned as a private function.

Karen, that's going to be difficult, because the host really is the member in all those examples, in my opinion.

I'm not sure how large your club house is, but it must be fairly sufficient to support some of those things mentioned.

And class reunions are often listed/promoted in local media.

Two of my brothers, my sister and myself are all withing a few years age range of each other. And all attended the same high school, and all graduated, in sequence, a year from each other (my two brothers in 72, me in 73 and my sister in 74).

If any of us were to be having a class reunion, we would either also be a part of each other's reunion or have cross-over invites from each.

If I had access to a club house that I could rent, I would certainly do that from either of my siblings, and not feel as though I were using or abusing the rules.

Size would be an issue, but I can't imagine using a clubhouse that wouldn't be sufficiently large enough to hold our expected attendees.

In addition, if I were a member of an organization, and I were renting the unit for a business function, even if I couldn't attend, since I'm a member of the organization, I'm still hosting it.

Po-tay-toe, poh-tah-toe. I can see arguments on both sides, is what I'm saying.

I think if the people who rent/use the clubhouse abuse it in terms of not cleaning up afterwards or conducting unethical business there, then that's a different sort of problem.

But if the dates are available, and it's first-come, first-serve, and the member is in good standing, I don't know that I'd pick those nits.

It's being rented (used) and not standing vacant collecting dust.

Plus, if you have been allowing such a broad interpretation, it's going to be really difficult to put that horse back in the barn without giving the appearance that it's a personal thing against the member.

Do your rules state that only a member can rent it or include also that the member must be present at the event?

I dunno.

Color me confused.

I see no harm in the request for the monthly business meeting.

The excuse sounds petty and trite to me.

But, meh. It's not my clubhouse.

For club house rentals, mostly there is a two part concern for the HOA: #1 insurance- the member needs to be present at the function (the entire time) #2- tax status (open rentals would not fall under non- profit).
Our Association looked into this topic because we bring in a lot of money through rentals.
Our council advised us that the resident/ member needs to be present while the function is taking place for insurance purposes. If anything where to happen the association's insurance should handle it, however the resident/ member may be liable for a portion.
We were even advised to add a clause to ask for rentals to indemnify the clubhouse rental under the member's homeowner policy for that rental. We were told that insurance companies do this all of the time (at no additional cost to the policy owner) and fax information to confirm the member is covered.
As far as taxes, you don't want to lose your non-profit tax status. Open retals and opening membership would throw your non-profit out the window.
I would consider class reunions as a private function. It maybe advertised, but it is not open to public. Members from that class are paying for tickets to go to that event.
Lastly, I suggest allowing nonprofit groups (501(c)) to reserve the club house for their monthly fuctions. It is a great way to get participation from those groups; Girl scouts and Boy scouts helping with clean up days, Red Hat Ladies helping with a Social Committee... I am not suggesting that you open any night to them, they have to work around the paid rentals.
I can understand the business group and the BOD choice, but we have rented our club house out to a local group (the one guy is a resident) and he holds monthly meetings (during the day).

Janice,

Could you elaborate on your #2? I was under the impression that if money is raised/earned by a NP on an occasional basis, but not as an end goal, that although taxes would need be paid, it would not endanger the corporate status.