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Thursday, November 15, 2018
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Subject: HOA Donations
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Author Messages
AngeloR2
(Arizona)

Posts:4


10/30/2018 4:03 PM  
As a non-profit HOA, IF a homeowner donates $ to the HOA is that a possible tax deduction.
CarolF
(Florida)

Posts:410


10/30/2018 4:20 PM  
Is it really a non-profit ( like a 501 C3) or is a not for profit corporation?
I can only speak for a Florida HOA corp, which is a not for profit, as
opposed to a real non-profit, that status is given by the IRS.
MelissaP1
(Alabama)

Posts:7716


10/30/2018 5:20 PM  
A HOA is NOT a "Charitable" non-profit. They are a Not-For-Profit. It is ONLY funded by it's owners for it's owners. It's to collect as much as it needs to spend on it's operational, maintenance, and capital improvements (reserve account).

Many people confuse a HOA for a non-profit corporation. However, if the HOA was to raise money let's say by having a yard sale, that money collected could be subject to taxation. It's not collected via dues.

Former HOA President
SteveM9
(Massachusetts)

Posts:3105


10/30/2018 5:24 PM  
Posted By AngeloR2 on 10/30/2018 4:03 PM
As a non-profit HOA, IF a homeowner donates $ to the HOA is that a possible tax deduction.




Its is entirely possible to do, although not legal.

An HOA is a not-for-profit, not a charity with non-profit status like a church with a tax id number the irs can look up to see if its a legal deduction.

But if a homeowner did put it on thier taxes as a donation and tax deduction and they never go audited, its likely it would never be caught. But I dont recommend doing that.

TIP: With the new tax laws 21 million people are not going to be itemizing anymore, therefore most people will have no tax deduction benefit of giving to a charity anymore.
DouglasK1
(Florida)

Posts:1263


10/30/2018 7:14 PM  
Posted By SteveM9 on 10/30/2018 5:24 PM
Posted By AngeloR2 on 10/30/2018 4:03 PM
As a non-profit HOA, IF a homeowner donates $ to the HOA is that a possible tax deduction.

But if a homeowner did put it on thier taxes as a donation and tax deduction and they never go audited, its likely it would never be caught. But I dont recommend doing that.


If you're going to cheat on your taxes, just report that you gave a church $50,000, don't bother bringing an HOA into it.

As to the original question, it takes more than non for profit corporate status with your state to make donations tax deductible. The organization needs to have a tax exempt status from the IRS, such as a 501(c)(3) charity.

Escaped former treasurer and director of a self managed association.
SueW6
(Michigan)

Posts:325


11/01/2018 2:59 PM  
Angelo,

You don't describe the situation in detail, but . . .

If the HOA threw a fundraiser dinner to benefit the March of Dimes, the check you wrote could possibly be tax deductible. $100 donation - the value of the dinner = amount you could deduct.

The HOA then takes all donations, minus the costs, and donates the funds to March of Dimes.


KerryL1
(California)

Posts:5852


11/02/2018 5:49 PM  
Melissa probably has made this blanket, all-encompassing misleading statement 301 times: HOA are not non-proftis. Sometimes she adds "charitable," sometimes not.

My CA HOA is a "nonprofit mutual benefit corporation," and I think most others in my state also are.
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