QUESTION: The board decided to reward two retiring directors with a $200.00 gift certificate. The treasurer used association funds without approval of the membership. Doesn't this constitute misappropriation of membership funds?

ANSWER: No, there was no misappropriation of funds. Recognition in the form of a plaque or gift certificate is a small thank you to volunteer directors who put in a great deal of time and effort for their community. Some of our client associations give retiring directors plaques that cost $50 to $200. In my opinion, nominal gift certificates are not a misappropriation of funds. Even so, gift certificates may raise eyebrows among members, which is why I prefer plaques—they are less controversial. Gifts by vendors are another matter.