How do most clubs handle paying the NAIC dues for the club.
For most expenses we allow the bivio software to establish
the ratio of expense per member. Since the NAIC dues are
paid dues for each person in the club should we distribute
this expense accross each member equally?

<<How do most clubs handle paying the NAIC dues for the club.>>

This is one of the most repeated questions on all the forums dealing
with club accounting. Do you assess [collect] amounts from members to
pay for the individual portion of the NAIC dues? If so, the simplest way
to handle it is to have the members make the check out to BI [NAIC], and
you submit their checks along with the club check for the club portion.
The members should deduct the amount they paid on their individual
returns. This not only is the simplest way, it covers the situation
where the club is not assess the individual portion for all members,
which happens when you have a life member or someone who is a member of
two clubs.

If, in the above situation, the members have made their checks out to
the club instead of NAIC, record the checks from the members as
transfers from Suspense to Checking. This keeps the checking account in
balance, and results in a credit in the suspense account. Although you
will pay NAIC with one check, record your payment to NAIC in two
entries. The first would be to enter the club portion as a check, to be
allocated to deductible expense. The second would be to record the
members' portion as a transfer from Checking to Suspense. This keeps
everything in balance, and wipes out the suspense account.

If you do not assess members for the individual portion, you can just
pay NAIC, and allocate either by ownership share or equally, in
accordance with your regular practice.

If you do assess your members, the thing to avoid is to record the
assessment as a fee, and then allocate the expense equally. I won't go
into it, but this results in a double whammy on those members with less
units. Far better, to keep the individual portion off the club books, in
accordance with my first paragraph, above.

Rip West
Saint Paul, MN

Kevin Boneta wrote:
> How do most clubs handle paying the NAIC dues for the club.
> For most expenses we allow the bivio software to establish
> the ratio of expense per member. Since the NAIC dues are
> paid dues for each person in the club should we distribute
> this expense accross each member equally?

Why join the NAIC at all?
--a B-Club member

Tom, BI (NAIC) also has stock study and portfolio management software, a
very reasonable datafeed of company data, and a network of chapters with
training classes and other resources, that are available. The dues are
best handled as an individual personal expense. Gene Rooks, Orlando

> Why join the NAIC at all?
> --a B-Club member

Now there's an interesting question! <VBG>

Our club members are all individual members of NAIC. We have been since the
beginning. We require that all members have the same analysis software, and
the data feed. After 12 years of clubbing, I discovered that people who
share the same tools are more likely to participate equally (which ours do)
and have better results (which we do).

NAIC's original methodology, developed by the great (and deceased) George
Nicholson, came from his avid studies of Security Analysis by Benjamin
Graham and David Dodd. Anyone can study this epic, but not many can put
their sophistiated, yet simple, approach to practical use.

I am an associate director for the Central Iowa Chapter and an instructor of
the software programs, as well a long-time member. I am also known for
vocalizing my extreme disappointment in the current management of NAIC which
was placed about 3-4 years ago. Even with my current discontent, I can tell
you without reservation that a personal membership would be an invaluable
asset for any beginning investor. This organization has supported
investment clubs for 50 years (until recently) and there are plenty of tools
available on their website to help a club operate successfully.

Just my 2 cents.

Lynn Ostrem, President
garbagecop@foxinternet,net
Crow River Investment Club
www.bivio.com/crowriver