If the money is deemed to be a loan to the Association, it should be recorded as a liability on the Associations books. It would increase the cash of the Association but it would have no effect on the reserves as it does not belong to the Association and would have to be paid back.
In addition there should be should be an agreement to document the loan, the terms and the due date. This agreement should be signed by the Sponsor and the Board.
Mohammed F. Salyani, CPA, FCCA (UK)
Wilkin & Guttenplan, PC
1200 Tices Lane
East Brunswick, NJ 08816
732.846.3000 x 109