8min read · by KindRise’s founder, a Brooklyn resident

HOA Fundraising in California: Rules, Ideas, and What Actually Works

California has more HOAs than any other state — an estimated 50,000+ associations covering roughly 14 million residents. Whether you're in an Irvine master-planned community, a San Fernando Valley condo complex, or a San Diego single-family neighborhood, the rules are the same: California HOAs operate under the Davis-Stirling Common Interest Development Act, the most comprehensive HOA statute in the country.

The good news: Davis-Stirling doesn't prohibit voluntary fundraising. HOAs can raise money for community improvements as long as they do it right. Here's what to know before you launch a campaign.

What California HOAs can fundraise for

Generally, HOA fundraising is permissible when it:

Targets a specific community improvement (playground, landscaping, pool equipment, fitness area)
Is authorized by the board via a recorded vote
Uses voluntary contributions — not mandatory assessments dressed up as "donations"
Aligns with the HOA's stated purpose in the CC&Rs

Common fundable projects in California HOAs include EV charging stations in the common parking area, drought-tolerant landscaping upgrades (very popular post-water-restriction era), wildfire defensible space improvements, and community solar projects.

What to watch out for under Davis-Stirling

⚠️ Important — consult your HOA attorney The information below is general guidance. California HOA law is complex and your specific CC&Rs, bylaws, and tax situation matter. Before launching a campaign, run it by your HOA's legal counsel or management company.

Assessments vs. contributions: Davis-Stirling has strict rules about how assessments are levied (notice periods, vote thresholds, etc.). A "fundraiser" that effectively pressures residents to contribute or withholds community benefits from non-contributors could be reclassified as an unauthorized assessment. Keep contributions genuinely voluntary.

Reserve funds are separate: Money raised through fundraising is not the same as reserve fund contributions. Don't commingle fundraised money with the reserve fund without accounting for it properly — your HOA CPA will thank you.

Raffles require careful handling: California's raffle law (Penal Code § 320.5) allows nonprofits to run raffles, but HOAs are typically not 501(c)(3) nonprofits. Some HOAs work around this by partnering with a local school or nonprofit that receives the raffle proceeds and then contributes to the project. Get legal advice before any raffle.

Political fundraising is out: HOAs cannot use community funds or association infrastructure to support political candidates or ballot measures. Don't use the HOA email list or newsletter for political campaigns — it exposes the board to liability.

Getting board authorization

Before you announce anything to residents, put the fundraising proposal on the next board meeting agenda. The motion should specify:

The specific project being funded
The dollar goal and deadline
The platform used to collect funds
How excess funds will be handled (returned, applied to reserves, or carried to next project)

Board Meeting Motion Template

MOTION: Authorize Community Fundraising Campaign

Moved by: [Board Member Name]
Seconded by: [Board Member Name]

The Board of Directors of [HOA Name] hereby authorizes a voluntary community fundraising campaign for the purpose of funding [PROJECT DESCRIPTION].

Details:
- Fundraising goal: $[AMOUNT]
- Campaign period: [START DATE] through [END DATE]
- Platform: KindRise (gokindrise.com) — low-fee donation page with QR code
- All contributions are voluntary and non-assessable
- Excess funds, if any, will be [applied to project reserves / returned to contributors on a pro-rata basis]

The [BOARD MEMBER/COMMUNITY MANAGER] is authorized to set up and manage the campaign page.

Vote: [ ] Ayes  [ ] Nays  [ ] Abstentions
Motion [passed / failed].

Fundraising ideas that work especially well in California

EV charging station campaign: California has strong EV adoption — often 20–40% of vehicles in newer developments are EVs or plug-in hybrids. If your complex lacks adequate charging, a campaign to fund charger installation resonates immediately. Many residents will contribute because they benefit directly.

Drought-tolerant landscaping upgrade: California's water restrictions and rising water bills make turf-to-garden conversions a popular project. Many communities have applied for LADWP, EBMUD, or local water district rebates alongside fundraising — the rebate offsets the cost and increases the dollar-for-dollar impact of donations.

Wildfire defensible space improvements (relevant in fire-risk areas): In communities near the WUI (wildland-urban interface), fundraising for defensible space clearance, ember-resistant vents, or fire-resistant fencing is extremely fundable. After a major fire season, residents feel the urgency directly.

Community solar / Lighting: Upgrading common area lighting to solar or LED reduces electricity costs for all homeowners — a concrete, dollar-quantifiable benefit that makes the ROI easy to explain in your campaign.

Online donation campaigns work especially well in California HOAs because the population skews tech-comfortable and smartphone-first. A campaign link shared in the community app or Nextdoor group can hit its goal in a single weekend if the project is well-chosen.

KindRise Feature

Every campaign gets a QR code — automatically

Launch a KindRise campaign and a unique QR code is generated instantly. Download it, drop it on any flyer or poster, and residents scan to donate in under a minute — no URL to type, no friction between the ask and the gift.

Launch your campaign free →

How to frame your California HOA campaign

Two things move California HOA residents to give: direct personal benefit and environmental/community values. Generic "help improve our community" appeals underperform. Specific framing works better:

"This campaign funds 4 EV chargers in the east lot — reducing wait times and adding $X to property values."
"Replacing the front turf saves the HOA $X/year in water costs — every dollar you give pays back over time."
"Defensible space clearing on the north slope reduces our fire insurance risk — and insurance costs affect all homeowners."

Tip: California HOAs with 50+ units often have an active resident with project management or nonprofit experience. Finding and empowering that person to run the campaign — rather than the board chair doing it all — significantly increases how much is raised.

Template: California HOA Community Email

HOA Campaign Email — CA Version

Subject: Voluntary campaign to fund [PROJECT] — no assessment, just community support

Dear [Community Name] neighbors,

Our board has approved a community fundraising campaign for a project we've heard many of you asking about: [PROJECT DESCRIPTION].

What it costs: $[AMOUNT]
What it means for you: [SPECIFIC BENEFIT — e.g., "4 new EV chargers in the east lot, available to all residents"]

This is a voluntary campaign — no one is required to contribute, and it has no effect on dues or assessments. We're simply giving residents the opportunity to fund something they want.

Campaign link: [URL]
Goal: $[AMOUNT] | Deadline: [DATE]

The campaign page shows real-time progress, so you can watch it build. We'll share updates at the next board meeting and in the monthly newsletter.

Questions? Email [BOARD EMAIL] or bring them to the next meeting on [DATE].

Thank you,
[HOA Board]

For a full list of fundraising ideas beyond California-specific projects, see our HOA fundraising ideas guide. For the HOA fundraising playbook, see our main HOA community fundraising guide.

Ready to start? Launch a donation page on KindRise in minutes — with a free AI-generated banner, an auto-generated QR code for flyers, and low transparent fees so more of every dollar reaches your cause.

KindRise is a small, independent project. Email support@gokindrise.com and a real person reads it and helps directly.

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Frequently asked questions

What is the Davis-Stirling Act and does it affect HOA fundraising?

The Davis-Stirling Common Interest Development Act is California's primary law governing HOAs. It covers assessments, reserves, elections, and member rights — but doesn't explicitly prohibit voluntary fundraising. HOAs can accept voluntary contributions as long as they align with the HOA's governing documents and purpose.

Can a California HOA run a raffle or lottery?

California has strict gambling laws. HOA raffles are generally permitted as 'charitable' or 'community' events, but must follow the California Penal Code's raffle exemption rules: proceeds must benefit the HOA (not a for-profit entity), and in some cases registration with the Attorney General's Registry of Charitable Trusts may be required if the HOA qualifies as a charity. Consult your HOA attorney before running a raffle.

Are HOA fundraising contributions tax-deductible in California?

Generally no. HOA fundraising contributions are not tax-deductible for donors because HOAs are not 501(c)(3) nonprofits. However, contributions to a separate, qualifying nonprofit (like a PTA or community foundation) that benefits the HOA's project may be deductible. Consult a CPA for your specific situation.

Does a California HOA need board approval to fundraise?

Yes. Any fundraising activity should be authorized by a board vote and documented in meeting minutes. Review your CC&Rs and bylaws first — some governing documents restrict what the HOA can do beyond its core operational mandate.