Sport Private Club For Students Project
Type of Club
After graduation all students face the same problem, which lies in the fact that it is hard to stay in touch with everybody. What is more, some of my friends will come back to their home town or move to another city as well. For this reason, we have been discussing what the best way to stick together would be. We decided to set up a private club, which will help us to meet frequently. We consider it to be a great idea to gather in a specified place and communicate with each other. What is more, the private club is a place where people with similar interests, experience, backgrounds, professions can gather for social and recreational purposes, which are not open to the public and a person has to be accepted by the rest of the membership in order to join (Penn).
We would like to start a private sport club, because it is the best way to relax and hang out with some old friends. This club will offer some recreational sports facilities to its members. Moreover, it is a great opportunity to take advantage of it and make yourself healthier. However, what is more important, it is a chance to meet with your fellows. The club will be located in a suburban area. We will have a swimming pool, tennis court and place for playing golf in order to create a perfect atmosphere to chat or discuss some issues. Furthermore, this will be a 501(c)(7) Social Club, it means a tax-exempt private organization, allowed not to pay taxes due to having no income (Cullinane).
We will be meeting twice a month or even more often. If someone cannot come to every meeting, it is okay. What is more, it is better to make arrangement between even two or more members in order to meet earlier. Since the club will be private, the members are going to join us based on an invitation from management.
Speaking about memberships, our target members are graduate students from our college. First of all, we should find out what we can offer to them. What is it that brings these people together? This would be friendship and passion for sports. One of the most important issues is member fees (Johnson). We have to charge the membership payments in order to cover the club’s outlays. Moreover, how often will we collect the dues? And what do these fees cover? The owner of member cards will get full access to all facilities.
The privileges of the card include:
- Access to the clubhouse facilities, indoor and outdoor dining;
- Social gathering;
- Swimming pool;
- Catering facilities and services;
- Tennis court.
Types of memberships: basic, regular, social, nonresident and playing. Due to regular package, the fees are 45$ for one year membership, 25% discount on entry payment to all public events and free use of all sports facilities. The social type costs 80$ for one year membership and allows you to bring a guest with you (Penn). Moreover, it gives you a 25% discount on the entry payment to all public events for you and even for your guest as well. The playing one is available for those who want to have unlimited access to all the facilities such as golf, swimming, dining or tennis at any time. This package will cost 95$ for one year membership and there will be provided free drinks during the events. The regular membership gives the rights to vote, to hold office and to use all the facilities having the highest fees – 150$ per year. The nonresident package is designed for those members, who live a certain distance away from the club. That is why, the payment should be lower than the previous one, because such members will use the club less often than others. So, the cost will be 20$. Moreover, we will set up the possibility to choose how often the member may visit the club, for example, two or three times per month.
Governance of Club
The next step is to identify the governance responsibilities in the private club. However, we should determine the club’s organizational structure first, which depends on whether it is an equity or non-equity club. Governance is the system used by organizations to coordinate their activities. It is well-known that there are no differences between administration, governance and management (Perdue 10). Moreover, due to this model, the governance would be at the highest level of the club. The Club board of directors has to fully understand their core responsibilities and the way of carrying out successful long-term operations. Moreover, it is hard to implement one particular model that will fit all private clubs. It is important to have the communication element between them and management team in order to operate more effectively (Perdue 13). The private club has a lot of moving parts in terms of personnel and activities. That is why, it is hard for one person to organize and coordinate the entire work.
First of all, we should set the policy and club’s rules. From this perspective, it sounds very simple, but it is a very serious issue. That is why, we have to think strategically. What is more, we should deal with any issue very fast in order to provide excellent service. To use time more productively, it is better to focus on the long-term plans during the meetings and, of course, keep it short. Governance should know our club, its financial resources, traditions, culture or even internal rules. That is why, they should establish a framework in which work may be allocated and coordinated (Perdue 10).
The typical duties of the board are to establish general operational policies, control the financial stability, vote for new members, hire the new general manager, approve the operational budget and evaluate the work of club’s manager. The roles of governance should be clarified. There will be club members, board members, president and general manager. The communication channels should be fast and clearly established from members to the board, from the board to the general manager, and from general manager to the staff as well. The general manager will run the club on a daily basis. Moreover, the club’s board of directors should delegate the responsibilities of its operational functions to the general manager and also give some advices to him/her (Perdue 17).
Management of Club
The club’s facilities will face competition from public facilities. For example, we will deal with the independent public restaurants, cafes, or pubs and clubs. All of these competitive pressures make it clear that the private club must be governed by professional managers and employees, who can provide services of excellent quality.
The general manager is the chief operating officer of the club, who attends board meetings in order to report on daily club’s operations, but does not have a right to vote. He or she will manage the work of the whole club including its activities and the communication between its board of directions, members, guests and employees. Moreover, the manager administrates the club, implements the budget and monitors the quality of the services in order to maximize the members’ satisfaction (Perdue 17).
Human Resources at Club
As for human resource management, we would need to hire club professionals (athletic committees), a house committee, a catering manager, a controller and employees. The club professionals are a swim pro, who will be responsible for members and will have to deal with the situations, where a bad judgment or lack of training might lead to tragic consequences. The swim employee should be mature and trained swimmer. This position is a part-time and seasonal one. Moreover, we will need a house committee that will control the quality of the food during various events. However, he or she does not manage clubhouse personnel. It is important to satisfy our employees by providing high wages and benefits, which will be competitive in the same industry.
A catering manager provides the club’s dining facilities for different events. He or she will administrate all aspects of serving food and drinks, promoting the menu for the meetings. Employees provide services to club members. As we will start with the small club, we will not need a lot of staff. For example, the kitchen might only have one cook. A controller of the club is supposed to develop some policies to coordinate and control accounting procedures, prepare the financial statements, and analyze financial information for members and board of directors (Gustafson 26).
The Club House
During the first year, we would like to offer some typical facilities such as dining facilities, a meeting and banquet room, a billiards table and an overnight accommodation. Firstly, club’s food is among the most important factors that may affect the member’s impression (Gustafson 27). Guests’ expectations are always high, and that is why, this is the best way to keep people happy with our club. Moreover, we will provide a casual dining room with food in a buffet-style. There will be some locker room in order to provide some space for the individual meetings. In addition, we will offer a meeting room for social gatherings with a billiards table.
In the following two or even three years, I hope, we will create more facilities such as the swimming pool and tennis court with the professional stuff. What is more, in ten years the club will grow into a large college club with a lot of facilities such as golf, restaurant or even a fitness club. Moreover, it would be very popular among the graduate students. Furthermore, we think, an overnight accommodation is a very useful proposal, especially for nonresident members. I hope we will find a sponsor for our idea, and maybe it will be somebody from college.
We will start from a simple social gathering place, where we can meet with friends, chat, relax and play the billiards. What is more, the dining room may be indoor and outdoor, which depends on the weather, season and member’s will. Discussing with future members, we decided to provide an overnight accommodation, because some of the friends will arrive from different cities. That is why there will be no need to hurry or book hotel rooms. Here is an example of how it will look like (Penn).
As for recreational activities, we will focus on sports and health-oriented activities. The main recreational activities are billiards and table tennis. During the first year we will be able to offer only a social room with some sport activities and free space for chatting to our members. Furthermore, we would like to play football and badminton outside. As we know what our friends are looking for, we would like to build a swimming pool, which will allow us to provide some events by the water and to play some water sports such as water polo and swimming. Moreover, I am sure most of the people want to be healthy and have a beautiful body. That is why, in five years the club will open a fitness room for its members. From this perspective, our initial members may also look for some fitness clubs and places for some sports events, and in a couple of years we may offer it to them.
Entertainment at Club
We would like to organize some events during the first year in order to gather together such as a Barbeque Party, Sunday Breakfast, Karaoke Night, Poker Night and so on. However, the club should focus its activities on sports. That is why we will offer the lounge room with billiards and table tennis. Moreover, we are planning to build a swimming pool there, and this may happen during the third year. The Barbeque Party will be organized once per two months during summer and autumn. It will be covered by membership’s fees. On the other hand, we will offer a Sunday Breakfast event, which may be a picnic once a month or breakfast in our cafe. The most interesting event is a Poker Night, so that we can play poker every Friday. The Karaoke Night will be held on Saturdays twice a month. In the next five years, we are going to provide more entertaining events such as the championships of poker, billiards or tennis every year. We may also celebrate graduation anniversary with some local band or singer, and invite our teachers as well.
Communications and Marketing of Club
People usually join the private club in order to meet with each other, make friends with others and chat with others about similar topics of interest. Moreover, we realize that we need a marketing strategy in order to increase the number of members. Our club will be exclusive, which means not everyone may join it. However, we may implement such kinds of rules to our marketing plan:
“Word of mouth”
Most of the members talk among other people and I am totally sure they will spread some information. Moreover, other people understand that not having a full membership leads to an increase in the amount of fees (Ferreira 21). On the other hand, we may ask our members to make people aware about this club.
Firstly, we can develop a website for our club in order to provide members with the current information, memberships’ fees structure and its categories. Secondly, we can post club’s ads on the college website, in social networks, etc.
These events, for example, speaker events, allow non-members (students) to gain some experience in the club. That is why, if they like it and have a great time, they may decide to become a member after graduation.
The Club Brochures
These brochures may depict pictures of members in different club areas. It helps to visualize how they would use the club (Ferreira 22). These marketing tools may help us to develop the club and make it widely known and popular among college students. I hope we will succeed in the implementation of these actions. As for the communication in the club, we will hold the meetings with the board of directors every month.
IRC 501(c)(7) Compliance
Let us discuss the main challenges for maintaining the level of tax exempt status and why it is advantageous.
To have this status, the social club should meet such requirements:
The private club should be organized for exempt purposes such as pleasure, recreation, relaxation and social ones (Penn). Moreover, it must not discriminate people by race, color or religion. The proposed activities also must meet exempt purposes. The memberships must be limited and give an opportunity to the personnel to contact other members. The club should be supported by members’ dues and fees. The financial income should not benefit any person, who has a personal interest in its activities. The club should not provide products and services to the general public (Government Equalities Office).
There are a lot of advantages of IRC 501(c)(7) status:
First of all, its main benefit for the club is that it does not require paying federal taxes for its day-to-day activities. Moreover, it gives an ability to sell the assets in a nontaxable transaction in order to reinvest in the club later (Cullinane). We may use all the money from fees in order to increase the quality of services and open new facilities that we are planning. Secondly, the club’s revenues can receive no more than 35 percent from non-member sources (“Social Clubs”). That is why it is a great idea to find some sponsor to help the club.
To sum up, after graduation people may join the club in order to meet with the old friends from time to time. They will be able to get engaged in a number of activities to relax, take a rest, chat with some interesting people and enjoy exclusive atmosphere. In the next 5-10 years the club will grow into a popular college club with fitness services. Moreover, I hope, we will create a tradition to be a part of our college family even after graduation and it will help people to always stay in touch with the fellow students.