Financial Resources

INTRODUCTION Profit centers in nonprofit corporations.  The first thing that probably comes to mind is “But, we can’t make money, we’re a nonprofit.”  True.  Most Community Associations are nonprofit organizations.  However, the ability to “make a profit” if you are a nonprofit organization exists none the less. Remember, the primary distinction between for profit corporationsGo to Resource

Hypothetical: Owner lives in a decades old association. Owner consistently pays assessments in a timely manner. Owner’s association needs to make a major renovation to replace siding and repair wood structures, which will cost the association approximately two million dollars. The association does not have an adequately funded reserve fund and a special assessment isGo to Resource

It is said that fraud takes motivation and opportunity.  If both are not present, fraud cannot occur.  It is hard to affect motivation, but managers and boards can control the opportunity.  In today’s economy with foreclosures, tight credit, and job layoffs, diligence in watching and guarding association money is crucial. Below are some key thingsGo to Resource

Introduction Associations are generally formed to perform many tasks on behalf of the owners within the common interest community.  In order to perform these tasks, there must be sufficient monies.  Thus, a funding mechanism is provided through the levying of assessments.  The declaration for a community generally contains a provision addressing how the yearly assessmentGo to Resource