Can an Association donate members funds to charity? – Article by Mark Fragola

Associations are looking for ways to give back to their communities. One question does remain ” Can a Board of Directors donate member funds to a charity?”

Here is a great article I found to answer for this very question:

Can condo board donate member funds to charity?

By community living

 Q: Our board approved a donation to a local charity. The item was approved at a board meeting where it was not an agenda item, but added at the last minute. While I think it was a good and noble gesture, I question if the action was proper. Can you point me to any document that covers this action?

— W.K., St. Petersburg

A: The condominium act does not exclude contribution but it does list acceptable expenses. An interpretation of this section indicates that the board cannot properly make a charitable donation with member funds. The HOA act is not as restrictive, but boards should use caution and not make donations to charities. Your board cannot take action unless an item is on the agenda. If they do, it must be an emergency situation and at the next board meeting such action ratified. In such situations, I suggest that the board ask for contributions from the members and they be used as the donation.

 

If monetary donations are a “No go” for your community, try other methods. Try donating old cloths to your local Goodwill Chapter or donating food to a local food bank, their are a overwhelming number of options out there. In any event, if you don’t know how to go about this, consult your Property Manager and or Association Attorney.

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Comments
One Response to “Can an Association donate members funds to charity? – Article by Mark Fragola”
  1. Charity should go beyond ‘monetary donations’. For instance, volunteering remotely for distant education programs is one way in contributing to community development across the world, It is a matter of putting in a little bit of effort while creating a lot of value.

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