Welcome to 2015! I hope everyone had a wonderful holiday season.
The days are starting to get longer, and it will not be long before we are enjoying warmer weather. This is a great time of year to set goals for your clubs.
One question I am often asked is how much a club should have in savings. Some clubs keep significant balances in the bank and others function on a shoestring budget. Although there is not a single answer for this question, I will offer some things to consider that will help you determine a number.
What goals does your club have for the future? This would include the purchase of land, building a clubhouse, paving the runway, adding electricity, and many others. You should define these goals based on what is important and what is urgent. (Steven Covey fans will recognize this statement.)
If you only address goals that are urgent, it becomes more expensive and often is not quite what you want. By addressing goals that are important but not yet urgent, you can lessen the financial burden and reach the best solution.
For example, let’s take a look at field equipment. We know that it is important to keep the grass mowed and looking nice. We know that equipment wears out. If you set aside funds each year, it becomes easy to replace the equipment as needed. If not, then you are scrambling to find something that will work.
I belonged to a club years ago that went from one worn-out mower to the next. With proper planning, we could have had a nice new mower for about what we spent on repairs and replacements.
A few months ago, I wrote about 501(c)3 vs. 501(c)7. Since my readership has topped 28, we have put this article on the website as a reference piece and to make it easier to find. Please let me know if there is anything I can answer that pertains to finance and your club.
I look forward to seeing members at the AMA Expo and several indoor events while we wait for the weather to get better here in the Midwest.[dingbat]