The non-profit status of an association is not governed by the HOA Act, Fla. Stat. 720. This is an IRS matter. The HOA is not required to have a $0 balance at the end of the year, but does have to be careful about showing a profit (which is not the same as having $0 leftover) and cannot distribute excess funds to shareholders or members. The HOA should check with a CPA to ensure compliance with the IRS Code.
This communication is not intended to create an attorney/client relationship. It is always recommended you consult an attorney in person to discuss your case. The Law Offices of Stage & Associates practices state-wide and represents homeowners and community associations. Please visit our website at www.stagelaw.com.