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MelissaP1 (Alabama)
Posts: 13,836
Posted:
That would be dumb. The HOA can raise money by two ways. Raise Dues or have a special assessment from it's members/owners. Everything else is subject to taxes. A HOA is NOT a "Charitable" non-profit.

Former HOA President
WendyM5 (North Carolina)
Posts: 1,522
Posted:
go fund me is for deserving people and charities, I doubt most people would donate to an HOA which is neither.

vis ta vie
MichaelT21 (Arkansas)
Posts: 200
Posted:
I think go fund me has fallen out of popularity.

However, be aware that your HOA will need to pay ~30% income tax on any revenue gained by gofundme, so it may no be worth your time.
JohnT38 (South Carolina)
Posts: 1,631
Posted:
I am truly curious why anyone would donate their hard earned money to an HOA?
CathyA3 (Ohio)
Posts: 6,299
Posted:
There are laws that limit the ways in which HOAs are able to raise funds: namely through assessments, fees (such as usage fees for amenities), and through investment returns. I'm not including loans because those need to be repaid - they're not new money.

Go Fund Me and other similar services exist to support charitable giving, which doesn't describe an HOA. Go Fund Me and others are also *for profit businesses* - they take a cut of every dollar that is donated. You can argue over whether or not their cuts are excessive.

In other words, Go Fund Me is inappropriate in this context.
SheliaH (Indiana)
Posts: 6,964
Posted:
What most others said. If you want to go this route and wind up with assorted tax issues should you succeed (and you probably won't), do you.

This is a HOA and you and your neighbors need to be willing to cough up the money for services the association is responsible for. If the community doesn't have the money in the operating budget or reserves (which is supposed to pay for major repairs and replacements - it's not a slush fund), you'll have to consider a special assessment or loan - maybe both. So it's not as simple as "money is money" - if it was that easy, everyone would do it.

All of that said, there was a time when my community had a vending machine outside the clubhouse - we used the money to pay for community extras, such as flowers for planting at the entrance. It worked for several years until someone broke in the machine and took the money - and then someone else made off with the replacement machine. We contacted a few vending machine companies to see if they'd be interested in providing a machine in exchange for renting the space, but the terms they suggested weren't financially viable, so we said "nah" and haven't had one since. Maybe that's an option you could consider - if you can anticipate and address possible theft, trash from whatever pop cans and candy wrappers would litter the neighborhood after people bought whatever they wanted, etc.


If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
MelissaP1 (Alabama)
Posts: 13,836
Posted:
No one has tried it because it is beyond stupid to try it. So that is the advice everyone here is going to give as we aren't stupid. We also LISTEN and not tell people to stop telling people to tell you ONLY what you want to hear. It doesn't work that way. Good luck and "Go *und me".

Former HOA President
KellyM3 (North Carolina)
Posts: 2,239
Posted:
The answer is "no," no HOA is referenced in this forum as having tried a Go Fund Me fundraiser.

Generally, an HOA "GoFundMe" is a called "Special Assessment" - jokes aside. Go for an assessment because paying for HOA operations should not be optional among property owners who benefit from HOA services and protection.

SheliaH (Indiana)
Posts: 6,964
Posted:
And there must not be anything on TV for you to watch - otherwise, why come on this website with a question you know is ridiculous so you can make snide and pointless remarks to peopke who tried to take you seriously ? This is why you don't have nice things. Or a date.

Fool me once, shame on you, fool me twice, shame on me. I'll remember not to post to any of your questions again. Have a nice day!

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
CathyA3 (Ohio)
Posts: 6,299
Posted:
Yup, another rando thinking that he can insult a bunch of strangers into giving him free, useful information. FAFO.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
But I am not the one trying to put a hand in someone @ss to control them. Good luck in getting that $ hit out. It boogers the nails.

Former HOA President
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Godess like now worship me.

Former HOA President
JohnT38 (South Carolina)
Posts: 1,631
Posted:
Quote:
Posted By TV on 03/20/2023 3:27 PM
lah de dah

can you say inflation.

I don't need spontaneous opinions , I want to know who has tried this.

other than that shut up!!

Now I understand. I'm always willing to donate money to an HOA who's Board is not smart enough to factor in annual inflation into their assessment fees. When you get the GoFundMe page up let me know and I'll donate $10,000.
ElleN (Idaho)
Posts: 4,420
Posted:
The subject of donating to a HOA comes up here often. A HOA is doing nothing wrong per se when it accepts donations. As MichaelT21 pointed out, the tax on this income (from donations) will be higher than the tax on income from assessments. Also the usual caveats apply, like not playing favorites because someone made a donation.

The search I did produces no examples of gofundme efforts for a HOA specifically. But so far, I see nothing in the gofundme rules that says a HOA cannot use gofundme to raise money. Some HOAs today denote folks of humble means. If this HOA's boards over the years got behind payments, and a HOA playground needs serious refurbishment, why not use gofundme?
ElleN (Idaho)
Posts: 4,420
Posted:
TV, I tend to think the first response (or first few responses) to a thread has (have) a better chance of setting the tone than subsequent responses. Also human nature seems to incline people to go along with the majority, especially if it becomes a pile-on? People get a little chemical brain kick when their thoughts are validated by a large group and they feel like they belong? (And having joined the herd on occasion, I take no moral high ground.)
CathyA3 (Ohio)
Posts: 6,299
Posted:
For honks and giggles, I Googled "HOA and GoFundMe".

Mostly what I found were people trying to raise funds for themselves because, from what I could tell, their associations were taking action against them for non-payment of assessments. Nobody 'fessed up to being a deadbeat, although one enterprising individual encouraged givers to "Help Me Stick It To The Man!" Oh sweetums, you and your neighbors ARE The Man. One other person griped about HOA rules, although I'm not clear how donating money was supposed to change this. All I learned from my research is how many people don't understand how HOAs work (not that this has ever been in doubt) and that the grifting class is alive and well and doing business on the internet.
CathyA3 (Ohio)
Posts: 6,299
Posted:
This article provides an overview of the subject: HOA Donations: Should The HOA Accept Them?

TL;DR: Yes it can but it should be prepared for the possible consequences, including tax implications and possible effects on its non-profit status.

Of the various donation avenues that were mentioned, most of them don't take a cut of the money as does GoFundMe and other for-profit donation platforms.
ElleN (Idaho)
Posts: 4,420
Posted:
Gofundme takes 2.9% + 30 cents per transaction. I think this is not bad.

I worry about what HOA representative would administer this. Preferably at least two reps would administer the gofundme donations.

People need to know such donations are not tax-deductible on their personal income taxes.

For HOAs with lower income residents, with the HOAs run in the past by inept boards, I cannot rule out using gofundme.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
Let's play the bouncing ball game... The HOA doesn't have enough money to pay for things. Someone suggests (TV for example) let's do a "Go fund me" as thinking outside of the box. What an original idea that is outside of the box! So now someone has to set up the "Gofundme" account. It can't be an individual HOA member. That would look suspect. It would have to be with the HOA itself. (Meaning ALL the members in the HOA). That way the money goes directly to the HOA and not to any individual member. Otherwise it may look like that member is trying to make a charitable tax contribution. Which is a no-no with the IRS or in this case the "Gods". Whom will tax that member and/or the HOA for that money. The HOA being a Not a Charitable corporation. Any money raised outside a special assessment or dues collection is subject to taxation. (Bake Sales, Garage sales etc...).

Now for the actual posting for the purpose. How should that read? The XXX HOA can not afford to fix X item(s) because of inflation. Please give us money to pay for our own items of which you will get no benefit nor access to at all as you are NOT a member of the HOA. You just give us money because we need it. Thank you.

The reality is the HOA has ALL the ability in the world to collect funds to fund it from it's members. It's called raising dues or having a special assessment. These are NOT subject to taxes. Plus a HOA is ONLY funded by it's members for it's members. The exact reason why a GoFundMe can not work because that would be NON-Members giving money out of their own goodness of their hearts. Otherwise I see no reason why someone would donate money to a HOA just because it can't manage it's own finances. That is just where the dumb part comes in.

As one of the "Gods" of this world it's good to know we have someone that can think outside of the box but yet still can't understand the box they are in... Good luck. I will be looking for your GoFundMe the next time I feel like tossing my money away for no benefit or interest.

Former HOA President
MelissaP1 (Alabama)
Posts: 13,836
Posted:
My board and HOA were not inept. We managed our bills and collections just fine. Plus increased our home values along the way Had a waiting list to get in. So I would not encompass ALL HOA's are inept or non-functional. It is just yours and in your universe.

Former HOA President
MelissaP1 (Alabama)
Posts: 13,836
Posted:
That is easy to explain. I sold my HOA house and moved...

Former HOA President
ElleN (Idaho)
Posts: 4,420
Posted:
Melissa, I had in mind a blurb like the following:

"Dear neighbors,

The Sunny Hills HOA has a small park that once served the children well, especially afterschool. (Note that the elementary school is only three blocks away.) Now the playground has fallen into disrepair, and the owners here will not have the money to pay for repairs for many years. The current board admits planning should have been better. But the situation is what it is. Won't you please consider donating to help replace the slide, swingset and turf for this humble subdivision's children?

This gofundme site is administered by Wanda Chang and Chuck Ziegler (also directors). If you want more information about the playground situation, please contact either of them at ____.

Sincerely,

Sunny Hills HOA Board"

CathyA3 (Ohio)
Posts: 6,299
Posted:
Here's a hypothetical.

Say your board decides to do this - let's say to fund repairs to an amenity - and a number of owners contribute.

Two years later fights have broken out among neighbors over who contributed, who didn't, why contributors should have first crack at using the repaired whatever-it-was, why non-contributors shouldn't be allowed to use it all, and why the board shouldn't increase assessments ever again. No new budgets have been passed since the donation campaign began. The community's Facebook page regularly erupts in accusations and colorful language, and the community picnic is interrupted when good ol' Joe (who contributed) takes a swing at that lazy deadbeat down the street whom he never did like. The local TV crew - alerted by enterprising troublemaker - shows up and files another "oh those awful HOAs" story, which gets plenty of views so at least the TV folks are happy. Another enterprising troublemaker talks to his lawyer because he believes the GoFundMe campaign amounted to an unapproved amendment to the CC&Rs that require all owners to pay equal assessments to fund HOA expenses, and his lawyer thinks "sure, why not" and begins legal action against the HOA and the board.

You're on the board who agreed to this. What's your next move?

(You think homeowners wouldn't be this petty? Do you actually live in an HOA?!)
ElleN (Idaho)
Posts: 4,420
Posted:
CathyA3, these hypothetical HOA owners sound like the usual CCOs. My next move would be to vote for the board to ignore the CCOs and/or inform those CCOs threatening lawsuits to, "Get a number and stand in line." (Tact should not be required for volunteers? )

I am not saying that a gofundme effort is the best choice. I might not support it. It would depend on my sense of the neighborhood. I have driven around neighborhoods in, say, Colorado that were clearly HOAs and were incredibly run-down. Blight spreads. Sometimes extreme efforts might be appropriate.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Okay and your point is that your neighbors and fellow members won't cough up the cash they HOA needs to meet their needs due to the raising costs? Sounds like a YOU and your neighbors problem NOT mine and my money.

Either start raising your dues as most places are allowed to do a 3 - 5% increase a year to meet increases in yearly inflation/cost of living. The reality is that inflation is here. It is something everyone is dealing with. Also most likely due to inflation not going to be raising a dime from anyone else's pockets for your HOA that can't seem to manage itself right.

Who is going to sign up for this Go Fund Me and contribute? Raise your hands... (Mine is the one with the middle finger raised).

Former HOA President
BobH28 (California)
Posts: 1
Posted:
I am a first-time contributor, so please go easy on me. In addition, I am not an active HOA board or committee member. For years, I have volunteered to run quarterly golf practice events for the HOA community. The golf practice area, open to all of our HOA residents, is mowed weekly and given general maintenance. As are all HOAs, our board is struggling to fix and replace 45-year-old facilities.
I have tried, to no avail, to improve the "gamesmanship" of our mundane golf practice area. We rank at the bottom of the totem pole. None of the board or facilities committee members play golf. So, I am beginning to study the option of using GoFundMe to raise $50,000 to build a golf target hole that has country club quality and is adapted to serve ADA standards. No, it's never been done, so let me be the first to try. I want residents to be able to ride their electric scooters to and through the golf area with smooth access for golf practice. This requires pathways and creative design to give former golfers the opportunity to return to the game.
Having read your pro and con elements in this forum, regarding GoFundMe and HOAs, I submit my belief that there is a segment of the general public who look for GoFundMe projects that will benefit others and they give from their hearts in support. I am the first to help when my friends post a request to help a needy family or school. Taxes and fees aside, I see this method as the best I can find, except maybe Facebook, which I haven't tried.
So, I am not looking for an impossible assessment to 1900 homeowners, most of whom do not golf. That won't happen. Also, it is not poor HOA planning that is in question. My board keeps the place immaculate and as up-to-date as possible. I wish to rely 3ntirely on steady GoFundMe contributors to help "pave the way" for senior seniors who can no longer transgress a regular golf course. Let them regain the fun of swinging a golf club in a place that has been prepared for them. Thank you for being this forum for my initial investigation into fundraising. I welcome pro and con replies, as well as suggestions for other outside resources.

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