club_cafe: fines and s.s.#
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club_cafe: fines and s.s.# In a message dated 9/20/2006 12:20:08 P.M. Eastern Standard Time,
willywhy@bivio.com writes:
We charge late fees etc. Is there a spot where a $20.00 fine A fine should not remove units from a member. A fine increases that
member's cost basis without crediting him with units. When the "fee" (that's how
you enter the fine) is recorded, the total value of the club increases by the
amount of the fee, and the fee is allocated to all of the members (including the
penalized member) in proportion to their share of the club.
Conceptually, you could do as you suggest -- removing sufficient units at
the current unit value from the penalized member, but then you would have to
create a mechanism for returning the amount of the fine to the club's total
value. The way the software does it is much simpler (and is consistent across
all providers of investment club accounting sofware).
Must we include the social security number on our club site No. You can always enter the SSNs manually when you generate the K-1s at
the end of the year. However, it is much simpler to just enter them into the
database and leave them there. I believe if you search the club_cafe archives,
Rob Nagler has discussed bivio's security practices. Needless to say, I believe,
(and I have no connection with bivio other than as a satisfied customer) your
data are more secure on bivio's servers than they are in your wallet. There is
the additional risk that if you enter the SSNs manually, you will make a
mistake. This could subject your club to a fine of $50/error/month until
corrected ($250 maximum per error).
Ira Smilovitz Conceptually, you could do as you suggest -- removing sufficient units
at the current unit value from the penalized member, but then you would have to
create a mechanism for returning the amount of the fine to the club's total
value. The way the software does it is much simpler (and is consistent across
all providers of investment club accounting sofware).
These things always surprise me. Maybe I'm in the minority,
but...
I believe that all Investment clubs have specific rules that all members
must abide by. If they don't honor these rules, they shouldn't be in
the club. I've started 3 clubs and none of them have ever had a
problem with attendance or late payments, simply because we don't tolerate
it. To me, a late fee gives the impression that there is an alternative to
paying on time.
If a club member's offenses are SO egregious that the club would consider
reducing units (or even charging a fee) it's time to let that member go.
Here's why: If one member is allowed to get away with it, the rest will
eventually follow--especially the new ones.
Chances are, a private note to the offending member, asking if they would
like to leave theclub, will probably go a long way to resolving the issue.
Some members would like to leave, but don't know how easy it is to tender a
resignation. The question will catch them off guard (Why do you ask!?),
and open a discussion about the problem.
I'd have a conversation at the next meeting before I'd jump to
fines.
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