Hello

Our club is going to have an initial cost for any member of
$30 to cover start up expenses. How should they be entered?
If I add them in as fees, it seems to skew the unit
calculation a lot. Is there a way to have a pool for the
initial fee that is consumed from start up costs and fees
that does not get included into unit cost calculations? Or
is there a better way to compensate the initial members for
start up costs that they incur that later members will not
have?

Thanks

Enter the Initial deposit for each member as a member
payment. Not a fee.
Units will be allocated proportionally to each member. That
is OK, it needs
to happen. Then, the expenses are entered as expenses for
the entire club.
You could elect to draw from each member an equal porion for
the expense.

Example:
You have 10 members. Each deposit $30 as an initiation
amount.
Your club has a total $300 deposited.
Each member has a 10% stake in the club.

Your fee to Bivio is $150. Enter that as an expense,
dividing among the 10
members the expense.
Each member will be deducted $15 from the total amount that
they have
deposited.

The units remain the same.
50% expense and 50% cash. $1 per unit = $300 regardless.

Now, some members might decide to deposit more money than
the others.
That's OK. It's all proportional to the deposited amount.
As long as they
keep their club holdings within the specified limit in your
Bylaws. Ours is
25% limit for any member's holdings.

Your expenses should always be drawn from each member
equally.

Fees in the other hand could be used to penalize a member
for a bounced
check or for not showing up to the meeting.
The individual fees allocated to a member will not increase
the units of
ownership in your stake on the club. In the contrary, it
will reduce it.
There are other instances were you would like to account for
an income to
the club. And that could have its special treatment on its
own.

Regards.

Chicago Megabuck Club


Fred Smith wrote:
> Hello
>
> Our club is going to have an initial cost for any member of
> $30 to cover start up expenses. How should they be entered?
> If I add them in as fees, it seems to skew the unit
> calculation a lot. Is there a way to have a pool for the
> initial fee that is consumed from start up costs and fees
> that does not get included into unit cost calculations? Or
> is there a better way to compensate the initial members for
> start up costs that they incur that later members will not
> have?
>
> Thanks

Thanks for the answer, but perhaps if I give an example to
illustrate the concern I have. Maybe I don't understand the
unit system properly?

4 members join putting in $50 each to start
They thus get 50 units at $1 each
Start up expenses are paid out of $100
Thus unit worth is now $0.50 ?
If a new member now joins and puts in $50 don't they get 100
units for their $50 rather than 50 units? Is that equitable
since the startup costs were incurred by the original
members?

That is why I wanted to have a $30 joining fee that did not
go toward units, but it seems that it still gets used in the
unit calculation? If there is a better way to make this
equitable, please let me know.

Thanks


Alessandro Squeo wrote:
> Enter the Initial deposit for each member as a member
> payment. Not a fee.
> Units will be allocated proportionally to each member. That
> is OK, it needs
> to happen. Then, the expenses are entered as expenses for
> the entire club.
> You could elect to draw from each member an equal porion for
> the expense.
>
> Example:
> You have 10 members. Each deposit $30 as an initiation
> amount.
> Your club has a total $300 deposited.
> Each member has a 10% stake in the club.
>
> Your fee to Bivio is $150. Enter that as an expense,
> dividing among the 10
> members the expense.
> Each member will be deducted $15 from the total amount that
> they have
> deposited.
>
> The units remain the same.
> 50% expense and 50% cash. $1 per unit = $300 regardless.
>
> Now, some members might decide to deposit more money than
> the others.
> That's OK. It's all proportional to the deposited amount.
> As long as they
> keep their club holdings within the specified limit in your
> Bylaws. Ours is
> 25% limit for any member's holdings.
>
> Your expenses should always be drawn from each member
> equally.
>
> Fees in the other hand could be used to penalize a member
> for a bounced
> check or for not showing up to the meeting.
> The individual fees allocated to a member will not increase
> the units of
> ownership in your stake on the club. In the contrary, it
> will reduce it.
> There are other instances were you would like to account for
> an income to
> the club. And that could have its special treatment on its
> own.
>
> Regards.
>
> Chicago Megabuck Club
>
>
> Fred Smith wrote:
> > Hello
> >
> > Our club is going to have an initial cost for any member of
> > $30 to cover start up expenses. How should they be entered?
> > If I add them in as fees, it seems to skew the unit
> > calculation a lot. Is there a way to have a pool for the
> > initial fee that is consumed from start up costs and fees
> > that does not get included into unit cost calculations? Or
> > is there a better way to compensate the initial members for
> > start up costs that they incur that later members will not
> > have?
> >
> > Thanks