Real Estate & Property Law

Should A Board Send Flowers or Money?

I have received questions about monetary and other gifts in the context of deaths and holiday bonuses for vendors. See my responses below.

Questions:

"I am the [on] the board for our HOA and sadly one of our board members passed away during the Christmas season. I feel that the Board of Directors on behalf of the HOA should have flowers delivered to [the family]to extend our sympathy, AND that the HOA should pay for this expense. I think it is definitely a proper use of HOA funds and is the proper thing to do, especially since [this person served on the board] for many years. I suggested this to the president, and she responded by saying that she was willing to do this but it would have to come out of our own pockets, not the HOA's. I disagree, only thinking to myself how rude and inconsiderate that is...yes, it is a personal as well as business gesture, but I don't know which way to go on this? "

And similar question from the other side: "I was out of town during the holidays and found that the board approved holiday gift payments of $_[over $100]__ to our gardener and pool service person. It seems an extravagant gift. I think we pay these people enough and am against this."

Since these people asked for my opinion, I will say this:

The death and flowers situation would seem to me a more personal expression and should come from those who want to contribute from personal funds. Although I would not say it is illegal to give such a gift from association funds, I think it opens the board to criticism for spending. The same question arises if a board member ends up in the hospital or sick. In this case, I think it better to "take up a collection" from those who knew the person if you want to have flowers delivered or a memorial of some kind offered.

I see that to be different than a business arrangement where money is the key to the relationship. And I believe that common recommendations are to "tip" service providers around 20% of a service or month's service charge for a holiday gift. I do not know if the bonus mentioned is in line with that. But I believe it is easier to justify this as a "business expense" than the other.

I am sure there are those that would disagree, but people asked.

Full post as published by California Condo & HOA Law on January 05, 2010 (boomark / email).