Dick, here is why I think the club would save. This year the club spent $7000 for the reception and had no income from it; therefore minus $7000 from the treasury. In my example the club would spend the same $7000 but would have an income of $4000 from the paid dinners; therefore minus $3000 from the treasury. The club would "reduce their losses", $3000 expenditure rather that $7000.