Donations for housing societies

If your hosing society is a Co-operative Society in Maharashtra the model byelaws have no provisions to raise funds through donations from outside paties.

Thanks Sir. This suggestion came from one of the member of our siciety management committee. As per him we will collect donations and deposit into society's account which can be used later on for various cultural events.

If any more details available please share. Because we should know the consequences of this decision.

You complain to the registrar of co-op housing societies. He should give orders to the society to stop the collection. Who is to give the donation?

Whether a housing society can collect donations from outside parties to raise funds for cultural events depends on the laws of the country or state in which the housing society is located. In general, however, housing societies are allowed to collect donations from outside parties as long as they do so in a legal and ethical manner.

Here are some factors to consider when determining whether a housing society can collect donations from outside parties:

• The purpose of the donations: The housing society must have a legitimate purpose for collecting donations. For example, the donations could be used to fund cultural events, improve the housing society's facilities, or provide financial assistance to residents in need.
• The method of solicitation: The housing society must solicit donations in a legal and ethical manner. This means that the housing society cannot use deceptive or misleading practices to solicit donations.
• The use of the donations: The housing society must use the donations for the intended purpose. The housing society cannot use the donations for any other purpose, such as personal gain or to fund political campaigns.

If a housing society violates any of these laws or regulations, it could be subject to legal action.

Notwithstanding the above, if at all your housing society is a cooperative society, then it would be governed by Cooperative Societies Act 2012. As such, it is imperative that  Sec 30 and 31 of the said act must be known to all members of any housing society if at all it is a cooperative society.

• Sec 30 of the Cooperative Societies Act 2012 which deals with restrictions on borrowing, mentions that a registered society shall receive deposits and loans from persons who are not members only to such extent and under such conditions as may be prescribed by the rules or bylaws.
• Similarly Sec 31 of the Cooperative Societies Act 2012 which deals with restrictions on other transactions with nonmembers, mentions that save, as provided in section 29 and 30, the transactions of a registered society with persons other than members shall be subject to such prohibitions and restrictions, if any, as the [State Government] may by rules, prescribe.

Therefore, it is always better to check whether your housing society is a cooperative society ? If yes, then what do the rules and bylaws say in the matter of collecting donations from outside parties to raise funds for cultural events.

Of which State is Co-operative Societies Act, 2012?

Another query- Can housing society open a bank sub account as *******Co operative housing society -Mandir to manage the other activities of Mandir which is in society premises?

No.  Such an account cannot be opened. The Mandir can be outside the premises of the Society. An association of interested members can be formed and they can have a bank account.

Yes, housing societies can collect donations from outside parties to raise funds for cultural events, but it's essential to adhere to legal and ethical guidelines. Here are some key considerations

1. Transparency: Clearly communicate the purpose of the donations, such as funding cultural events, and how the funds will be utilized.

2. Consent: Ensure that residents within the housing society are comfortable with soliciting donations from outside parties, as it may affect them in some way.

3. Legal Requirements: Comply with local laws and regulations governing fundraising and donations, including any permits or licenses required.

4. Accountability: Maintain transparent records of all donations received and expenses incurred, and be prepared to provide financial transparency to residents or relevant authorities if required.

5. Tax Implications: Be aware of any tax implications for both donors and the housing society, and communicate this information to all parties involved.

6. Ethical Considerations: Ensure that the fundraising activities align with the ethical values and guidelines of the housing society and do not compromise its reputation.

Ultimately, with proper planning, transparency, and adherence to legal and ethical standards, housing societies can successfully collect donations from outside parties to support cultural events and other community initiatives.