David said..."QUESTION(S) 1. Noting current 'cash' funds of around $82,000 - what is the long term objective of these funds?"

David, I will try to answer your questions as best I can. Any non-profit is allowed to accumulate and hold adequate working capital funds for one year of operation without question. At this point in time I do not believe we have an over accumulation of working capital.

David said...."Correct me if I am wrong, but unless tax laws are so dramatically different in the US, I would assume the club gets its 'exempt IRS' status due to the fact that it is supposed to be non-profit making. Surely most organisations with similar status are only allowed to accrue funds as they have buildings or other such projects to support? If we were ever to acquire a building, this would undoubtedly be the largest item of expenditure the club woud ever incur. If there is no other major long term 'capital expenditure' objective then why do we distinguish between the building fund and general fund?"

We distinguish between the two to maintain the integrity of the building fund. It is possible to ear mark funds for different educational purposes. The segregation by "purpose" makes it easier to analyze in terms of objectives.

David said...."Even if we maintain our tax status, the annual maintenance, utilities, security and insurance for any suitable premises are likely to be in the region of the clubs current annual net income. However...no matter how many eager volunteers we have, clubs always need to employ staff to work in premises unless they only want them to be open on an 'ad-hoc' basis, which to my mind defeats its purpose. At a shrewd guess I think subscriptions would have to be increased by 50% to cover ongoing costs."

David, what you say is may be true. We will not know for sure until the project is ready to begin.

David said...."I have seen insufficient evidence of the building sub-committees work so far. Please note I AM NOT SAYING THEY HAVEN'T DONE ANYTHING! I am merely stating that I have not seen any mention of the things I would have expected them to report back on. This is a 'club'... which means that anything which the sub-committee reports back to the main committee must be made public to its members at the same time. I would have expected to hear about the following by now, viz-a-viz"

David, all information can and will be made public. I believe your statement implies some sort of secrecy. I can assure you such is not the case. Please do not forget we are dealing with volunteers and as such depend upon them to handle the tasks. Obviously, this reqires patience and support. Kindly, demonstrate a little of both.

David said..."QUESTIONS (2). Has a 'feasibility study' been carried out to ascertain the likely square footage & location desired to see whether this is really achievable at todays property prices? Have any estimates been made of likely running costs and how that money would be raised? (subscriptions? separate membership? entrance fees? alcoholic refreshments...always a good earner?"

David, you are premature. The study has just begun.

David said...."My main concern would actually be that with property prices continually on the increase, the price of any suitable property could in fact be increasing faster than we are raising money."

Your concern would only be valid if the club planned upon purchasing the building. Such an option is currently not possible.

Hope this answers your concerns.
Jim