Gifts from vendors

Why a vendor gift is a conflict of interest

A vendor who is bidding for, or already holds, the association's business has a financial reason to want a favorable decision from the board. A gift, a meal, tickets, a discount on unrelated work, is one way to try to influence that decision. This is a self-dealing risk even when nothing is asked for in return: the duty of loyalty requires a director to act in the association's best interests, not to let a personal benefit shape a vote on a contract, a bid, or an enforcement decision involving that vendor.

What the industry's own ethics code says

The Community Associations Institute (CAI), a trade body whose model code many boards adopt as their own code of conduct, states the norm directly.

"Decline gifts directly or indirectly from owners, residents, contractors, or suppliers."

Source: Model Code of Ethics for Community Association Board Members (2021), Community Associations Institute

This code is not law on its own. It binds your board only where your governing documents or a board-adopted code of conduct have adopted it, so check whether yours has. Some states build a version of this into statute instead: Colorado requires every HOA board to adopt a written conflict of interest policy that spells out how a gift or other conflict must be disclosed, and whether recusal is required.

Florida makes it a crime

Florida is the clearest example of a state that went past ethics guidance and into criminal law.

"An officer, a director, or a manager may not solicit, offer to accept, or accept a kickback."

Source: Fla. Stat. § 720.3033(3), Florida Legislature

A kickback is defined broadly, as anything of value given without consideration in return. Violating this statute is a third-degree felony, and the board must remove the officer or director from office once a violation is found. Florida also bars board members from personally benefiting financially from their service at all, separate from any vendor gift. Other states have not been confirmed to make vendor gifts a crime; check your own state's HOA or condominium statute.

What to do when a vendor offers something

Decline before you accept. If something arrives unsolicited and you cannot reasonably return it, disclose it to the full board and get it noted in the minutes rather than keeping it quiet. Follow your association's own conflict of interest policy for how and when to disclose, and whether you must recuse yourself from any related vote. A small exception exists in Florida's own statute for food consumed at a business meeting worth less than $25 per person, a useful floor for thinking about what is trivial and what is not, even outside Florida.