We used to go Christmas caroling as kids (organized by my mom; 5 of us, and we each got to invite a few friends, then would have doughnuts and cocoa back at the house afterward)and then in my early married life. No one ever offered us money, just usually cookies or treats (maybe we were awful singers?).
Hard to believe someone REPORTED you to police.
She had a daughter who was not allowed to play with other children in the neighborhood - and complained about everything. Her husband left the reindeers on the roof all year round - no HOA;)
Never did determine if we broke some law by accepting money for singing carols. It is an old English custom, passed down thru my family.
There's nothing more adorable than a bunch of youngsters singing carols acapella.