Cohousing-L Mailing List: RE: Funding projects?

[Casey Morrigan (cjmorr]

So, here are some additional questions we are hoping for responses to:

>>1) If we assess members through the condo association for a capital
improvement that we have agreed to, can we exempt any households that have
agreed not to block but have stated that they cannot afford their "share?"

2) If we have a fundraiser to voluntarily fund a project, can we funnel that
money into the condo association without tax consequences?  Or is there a
better method for collecting these funds?>>

Do you have an accountant who works with your books?  Ours has helped us
with these related questions.  For some categories of expenditures of an
HOA, members have to be assessed equally.  I'm fuzzy on the details.  We
maintain several non-HOA "pass-through" accounts, which are theoretically
maintained for the purpose of funding a specific event or project (in our
case we pay for social events, child care for meetings, and of course our
meal accounts) and which are not considered to be taxable income.

>>3) If we keep funds out of the condo association because of tax
consequences, how should we deal with liability for contractor accidents and
such?  We heard through the grapevine that another cohousing group had this
problem but we are very shy on the details.>>

Rosewind posted about this within the last month.

I suppose you need to clarify whether your HOA is commissioning the work
(with money gifted to it?) or whether someone else (who?) will be signing
the contract with a contractor. You can check with your contractor as to
whether his or her liability and workers' comp coverage is current.


>>4) How do other cohousing groups raise money for optional projects (i.e.
not replacement reserves)?>>

We haven't actually done this. Yet. Good luck

Casey Morrigan
Two Acre Wood
Sebastopol, California

_______________________________________________
Cohousing-L mailing list
Cohousing-L [at] cohousing.org  Unsubscribe  and other info:
http://www.communityforum.net/mailman/listinfo/cohousing-l