@Paula Ratcliff it sounds like there was already an account with "money donated from lot owners" - is that correct? If so, what was the money originally donated for? How is that particular account titled and how is it listed on the balance sheet?
Lawyer - you can't have board members randomly calling the lawyer or it gets expensive fast - and this isn't a lawyer issue - it is a CPA question. When you need legal advice it should be discussed openly at the meeting and a motion made to contact the lawyer.
Fishing Derby Funds - a set amount (say $1000) should be left in the account from year to year as seed money. If the HOA is taking in more than it needs to properly host the event then a vote should be make to move the monies to another account. Keeping the account separate is a good idea.
Neighbor Fund - sounds like the money to pay off the accounts in arrears was a win-win. The neighbors got to stay and the HOA got to essentially "keep" the money. Again, this account should be separate.
Key Fund - this bank account could probably go away and just become a line item in your day to day fund account and the monies co-mingled with HOA dues, etc.
IRS - CPA You guys are probably a non-profit entity. Income from sources other than regular operations is taxable. You need to talk to your accountant about proper segregation of funds and bookkeeping. Many times boards have good intentions but make serious errors in handling the money. You are wise to question these moves without proper advice.
Thank you for getting back to me and being so thorough in your answer.
Hi again Teri:
We are not a 501C3. Does that change any of your advice to me?
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