Chief among the considerations for many considering joining a Club is often cost.
On Tax Day, Clubland USA addressed many of the common questions that appear at club tables about the “tax benefits” that club membership provides. (TLDR: Most disappeared a long time ago and only made a marginal difference in your bill unless you were a corporation!)
As the next installment of our “Clubhouse Guide” series, we will provide a quick breakdown of the various fees that might appear on your next club bill.
Initiation Fee
Think of your initiation fees as your “buy-in” to club life. It is a one-time upfront payment that has the potential to range from $500 to $500,000 (or more), depending on the Club. This is usually non-refundable and is also the largest revenue source for most clubs.
Annual Dues
This is your annual cost of membership in the Club, which can be billed annually, monthly or quarterly. This covers the cost of day-to-day operations at the Club, including facilities maintenance, food and beverage operations, member services and staff salaries.
Assessments: These are charged either annually, biannually or on a quarterly basis. Assessments cover those variable expenses that are usually not covered by annual dues. An unexpected repair of an elevator in the Club that is crucial to meeting ADA compliance needs.
Capital Improvement Fee
Capital Improvement Fees, usually charged annually, biannually, quarterly or in quite rare instances, monthly, support ongoing capital improvements to the Club. Revenue from these fees could support an upgraded kitchen or bar to serve a growing membership base, adding a squash court, or even building an indoor cigar lounge. (Yes, Leonard and Ben will always keep hope alive!)
Historic Preservation Fee
If you are fortunate enough to be a member of a Club with a landmarked building, historic preservation fees are your friend. These fees support all efforts taken by your Club’s leadership to fulfill local requirements for keeping landmark status, preserve your Club’s unique architectural elements and share your Club’s history with the broader public.
Holiday Fund
Clubs, especially Gold Standard Clubs, often have strict rules that prohibit members from making individual tips to staff. As an effort to support member gratitude, holiday funds (which can be contributed to on a year-round basis) allow for members to pool their contributions to be distributed among all staff members during the winter holiday season.
This is the most important contribution that you will make to your Club, especially because the contributions aren’t public. In life and in Clubland, some of your most important actions are the ones you take when no one is watching.
Athletic Fees
Stay tuned for future coverage when these fees will be covered in depth in a future issue by Clubland USA’s chief club sports correspondent, Ishaan Jajodia.