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Learn how to set membership fees within the club and how you can decide on an increase in contributions. Get valuable tips for designing contributions in your club.
In this short webinar, we'll show you how to manage contributions efficiently and keep a stress-free overview of your club finances — relaxed from the start of the year to the end.
The membership fee is a regularly paid fee that is charged by members of a club. This fee is used to cover the club’s operating expenses, such as rent, insurance, supplies, and staff costs. The membership fee is therefore a type of “operating contribution” that ensures the club can continue its activities.
In many cases, the amount of the membership fee depends on the type of club and its activities. For example, a sports club could charge a higher membership fee than a cultural club, as the costs of sports equipment and facilities are generally higher. The size of the club and the number of its members can also influence the amount of the membership fee.
Membership dues not only help cover operating costs but can also be set aside as a reserve for future investments or to fund projects. This allows the club to continue growing over the long term and expand its offerings.
It is important to emphasize that the membership fee is not a donation, but a fee that is charged by all members. However, this fee is usually very low and helps the club to maintain its important work. It is therefore in the interest of all members that the membership fee is paid so that the association can continue its activities.
Some clubs also offer discounted membership fees for specific groups, such as pupils, students or seniors. In this way, people with lower incomes can also have the opportunity to join the club and participate in its activities.
As a supplement to this general contribution, we have also written an article which includes the calculation of the membership fee. Feel free to read this one too — calculate membership fee.
There are various types of membership fees that can be charged by clubs. Here are a few examples:
The annual fee is the most common type of membership fee and is charged once a year by all members. It serves to cover the running costs of the club.
In addition to the annual fee, some clubs also charge a one-off fee, for example when accepting a new member. This contribution is often used to finance the purchase of materials or the furnishing of premises.
Instead of an annual fee, some clubs can also charge a monthly fee. In this way, the membership fee is charged in smaller installments and may be easier for some members to pay.
Some clubs also offer family contributions, which apply to all members of a family. In this way, families can join the club and participate in its activities more cheaply.
As already mentioned, some clubs offer reduced membership fees for certain groups, such as pupils, students or seniors. These contributions are generally lower than the contributions for “normal” members.
It is important to note that each club has its own rules regarding membership fees and that the examples given above are only suggestions. The type and amount of membership fees should always be defined in the club's statutes and decided by the members.
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There are no legal regulations for membership fees in clubs in Germany, but there are recommendations from some clubs. These recommendations serve as guidelines for clubs and are intended to help ensure that membership fees are made fair and transparent.
According to these recommendations, a club’s membership fee should be commensurate with the services and activities it offers. The amount of the membership fee should also be specified in the club’s bylaws and approved by the members at a general meeting.
It is important to note that the membership fee is no donation, but a fee that is charged by all members. Clubs are therefore not allowed to issue donation receipts and membership fees are also not tax deductible.
If a club does not claim its membership fees or if a member does not pay the contribution, the club can expel the member. However, the club must comply with certain rules, which should be set out in the statutes. It is therefore important that clubs deal with their members transparently and fairly and that membership fees are clearly defined.
The club's statutes should contain certain rules on membership fees so that they are made transparent and fair. Here are a few points that should be set out in the club's statutes:
The membership fee should be defined in the club's statutes. This amount may vary depending on the type of club and its activities. It is important that the membership fee is proportionate to the services and offers of the club.
The club's statutes should specify when the membership fee is to be paid. Some clubs collect the fee once a year, others collect it monthly or quarterly.
If the club offers reduced membership fees for certain groups, these should be specified in the club's statutes. It should also be determined who is entitled to a reduced contribution, for example pupils, students or seniors.
The club's statutes should specify what happens if a member does not pay the membership fee. Some clubs then block the member from the club's activities, others cancel the membership relationship. It is important that these rules are clearly defined and that the member is adequately informed.
It is important to note that the rules on membership fees in the club statutes must be adopted by the members in a general meeting. This ensures that all members are involved in setting membership fees and that they are made transparent and fair.
As a rule, a club can increase the membership fee by making the corresponding change in the statutes and submitting this amendment to the members for a vote. In the statute of the club it should be regulated how the membership fee is determined and how it can be amended. As a rule, a majority of members must approve the proposal so that the increase in contributions can take effect.
It is also possible that the club's statutes provide that the board or another body of the club can set or change posts. In this case, the Board could decide to increase the membership fee without the need for a vote by the members. In this case, however, it is important that the Executive Board explains transparently why an increase in contributions is necessary and that the burden on members remains sustainable.
If a member does not pay the membership fee, the club can usually take certain measures to claim payment of the membership fee. This can be done, for example, by payment reminders or reminders. If the member does not pay the fee despite reminders, the club can usually expel the member.
However, expulsion of a member should only be considered if all other options for collecting the dues have been exhausted and the member remains unwilling to pay the dues. Expulsion of a member must always be in writing, and the member must be informed of the reasons for the expulsion. As a rule, a decision on expulsion must be made by a governing body of the club, such as the board of directors or the general meeting.
You can find more information about a member exclusion in this post here:
Together with nine experts from practice, we have written a 98-page ePaper on current topics relating to clubs. The ePaper contains 5 chapters and 15 topics on important areas relating to the organization, members, funding, sponsors, taxes and more. You can download the handbook as a free download from the club handbook website.
