Question:
Our HOA is non-profit. We have nine-hole golf course which loses money each year. My question is may our non-profit HOA make money thru event donations to offset golf course expenses?
Our goal is to break even with our yearly expenses, so our members do not have face year assessment increases. To be very clear we do not wish to violate our non-profit status.
Some money-making suggestions are bingo, dinners, cooking class, casino night, fashion show, pool night with DJ, 50/50 raffles at events, community yard sales, cooking contest, etc.
– Brad
Answer:
Hi Brad,
Most homeowners associations in Virginia are incorporated as nonstock or nonprofit. That doesn’t mean your HOA can’t organize fundraisers. However, keep in mind that generating income outside of HOA dues and assessments may affect your taxable income. It is best to consult an accountant for further advice.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
