Re: Related questions about taxes and donation income
From: Kathryn McCamant (kmccamantcohousing-solutions.com)
Date: Tue, 22 Oct 2019 08:56:48 -0700 (PDT)
HOA are generally mutual benefit non-profits, at least here in California. A 
mutual benefit non-profit is NOT a charitable non-profit, to which you can make 
tax-deductible donations. A mutual benefit non-profits is for things like 
homeowners associations that are not set up as businesses, but with the 
expectation that most of your income from member dues will be spent in that 
year or set aside for maintenance reserves. 

Katie 
-- 
Kathryn McCamant, President
CoHousing Solutions
T.530.478.1970  C.916.798.4755

www.cohousing-solutions.com



 

On 10/22/19, 7:05 AM, "Cohousing-L on behalf of Jude Foster" 
<cohousing-l-bounces+kmccamant=cohousing-solutions.com [at] cohousing.org on 
behalf of foster.jude [at] gmail.com> wrote:

    Ann, I was surprised to read that Takoma Village doesn’t pay taxes on your 
resale pod donations.   I didn’t remember if you said that at your conference 
workshop.  It might be worthwhile for some of us to hear from your bookkeeper 
why or how that is true, and if it is due to your District of Columbia tax 
laws.  But with or without taxes, it’s a remarkable level of donation income!
    
    Katie, I was surprised to read your words that most HOA’s are “mutual 
benefit non-profits.”  I was under the impression that most Coho’s are 
registered under state condo laws, which are not “non-profits” in any legal 
sense, are they?
    
    My community, Trillium Hollow in Portland OR, files for taxes and reports 
all donations - Common House room donations, mostly, plus use of Common House 
by an outside entity, etc.  A total of $3-5K a year, which is nothing compared 
to TV's resale donation income.
    
    The big accountant company who handles most of our Reserve Studies in this 
area, Schwindt and Co, also handles our annual tax filing. That donation income 
is offset by certain expenses, resulting in a close-to-zero tax assessment each 
year.
    
    Maybe the subject line should change to “questions about taxes on 
donations?!”  I’ll do that now.
    Jude, Trillium Hollow
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