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CarolR11 (Colorado)
Posts: 2,563
Posted:

We’re a board of 7 and a director for four years, “Kathy,” is very involved with our Social Committee, is board liaison to it, and is close friends with some of its five members. Kathy completely organized a Soc. Comm.-hosted cocktail party not long ago for which she did some elaborate cooking.

The lounge for the party had just had a granite bar installed, with board approval, between the little kitchen and the main area. Before the party, 4 bar stools suddenly appeared at this counter, which I didn’t see until the party. I’m also on the board, which did not consider or approve barstools. Surprised, at the party, I asked a Soc. Comm. member, who replied that they were “donated.”

Our rules do NOT permit homeowners, including, of course, directors & comm. members to place any furnishings in our common areas for obvious reasons. I’m 100% certain that either Kathy donated these as she’s a very impulsive person, who wants her parties to be perfect and who loves to shop.

Or, with Kathy’s knowledge, the Social Committee “donated” them using what was left of its generous 2011 budget, which comes from our operating budget. Their charter doesn’t permit them to buy furniture. My guess is that the 4 stools cost 12-1500 dollars.

Our Board didn’t meet in December and I wonder if I should bring up this topic in Executive Session at our late January meeting. I don’t like the idea that a director either broke the rule herself or, worse, advised the Soc. Comm. to do so. If I do broach the subject. how should I approach it?

I’ve always been a great supporter of the Committee’s work--about 9 events year, and hate to upset its members. But . . . what else might they do under Kathy’s “guidance?”

What should I do? It’s too late to return the stools (which are a style which I would not have chosen--but that’s a very minor point). Should I just forget the whole thing? Kathy by the way, has a history of sneaking behind the board’s back when she made a different common area purchase before she was on the board.

TimB4 (Tennessee)
Posts: 21,046
Posted:
If they were donated, I don't see the issue (expecting that the social committee accepted the donation on behalf of the Association). Being donated is not the same thing as placing items in the common area.

If they were inappropriately purchased, that can easily be checked out by asking the treasurer for a copy of the committee's expenses.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
If they were donated they can never go back to the original owner. So if Kathy ever gets mad, she can't come and claim her stuff back. It should be understood that if you choose to "donate" to the HOA, it now is HOA property. There will be no taking back. Mind you that you can't donate cash to a HOA, but household goods such as these chairs shouldn't effect the budget any. There's no need to count this on the HOA budget at all unless non approved reimbursement is found.

Our HOA had a few items donated to it over the years. Those items ranged from Christmas decorations to furniture or basketball goal. We had a clubhouse which we could use some of those items. People sometimes left party supplies after renting the clubhouse. If those items stayed, they'd eventually become the use of any HOA member.

I would consider modifying the policy to indicate that leftover or donated property to the HOA becomes the HOA property forever. It can do what it wants with that property after the donation or time amount to reclaim has been met. Enjoy the stools!


Former HOA President
BruceF1 (Connecticut)
Posts: 2,535
Posted:
The fair market value of non-cash donations must be reported as taxable non-exempt function income.
SusanW1 (Michigan)
Posts: 5,202
Posted:
In a better world, the donor should have approached the board and made the offer of the donation. The make and style of the chairs would then have been approved and the board could have either voted to accept the donation or decline it.

Sounds like that was not done, or it was done within the social committee (does that committee have the power to accept furniture for the clubhouse?)

Anyway . . . that's the problem with unsolicited donations or gifts! Thanks for the puppy!

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