How to Set Up Club Finances: Collecting Money and Club Membership Fees Online

Clubs are a great way to connect with like-minded people. And if you want to start a club (or already lead one), you know just how many components there are to organize. The financial part can feel the most intimidating.

Club membership fees seem simple. But without the right tools and a strong financial structure, it can get overwhelming. This holds true whether your club is brand new or your existing club has an outdated system.

Whichever category you fall into, your members need a fresh, modern way to pay. And you need an easy way to collect, manage, and spend club membership fees.

So whether you're at the helm of a kayaking club or just starting a female entrepreneurs club, keep reading. You're about to learn how to set up your club and streamline your finances, including how to set up a convenient way to collect club membership fees.

Topics covered:

• How to start a membership club in 7 steps
• How to set up the financial structure of your club
• How to collect club membership fees
• Why you should use Pool

How to start a membership club

Congratulations! You've decided to start a membership club, and soon, many people are going to reap the benefits of your hard work.

1. Define the "Why" for your club

What's the main objective of your club? Write a brief mission statement that's easy to remember.

2. Set up your club structure

Clubs with very little overhead, where members self-organize, thrive with loose club structures. Clubs that require steady cash flow to operate and cover overhead costs typically need a more defined, formal structure.

Often, when a club forms, it starts small, and a loose structure is adequate. As it grows and expands, it may graduate into a formal structure. Whether your club is loose or formal, fill these five leadership positions to ensure it runs smoothly:

• President: club leader
• Vice-President: assistant to the president
• Treasurer: manages club money
• Secretary: manages internal communication
• Membership manager: maintains member records and develops strategies to recruit new members

3. Attract new members

Every club has a few founding members, but you probably want to grow. Use the following questions to define your ideal member:

• What criteria should members meet?
• What are the best demographics for members?
• Which factors (if any) prevent members from joining?

In addition to identifying your ideal member, get clear on the benefits and value you will be giving them. Once you define your ideal member and how your club will benefit them, develop a persuasive marketing strategy.

4. Set up the financial structure of your club

Creating and maintaining a financial structure is essential for every club. Below, you'll get a comprehensive guide to creating a robust financial structure for your club with the support of Pool.

5. Set up a club website

Showcase your club and help new members find you with a stellar website. Publish high-quality content, outline membership benefits, provide an application form, list FAQs, and share information about how prospective members can join your club and participate in club activities.

6. Have a kick-off meeting

Gather everyone together for a special inaugural meeting. Use this checklist to have a successful time:

• Briefly introduce the club and its mission
• Introduce the founding members
• Describe the structure of future club meetings
• Ask members why they joined and what they want to get out of it
• Invite members to apply for any open leadership roles
• Mingle and get to know each other

7. Keep the momentum going

There are many fun ways to keep your members engaged and interested in between meetings:

• Send eNewsletters
• Create a "Members-only" section on your website
• Create social media accounts
• Have an online membership database to track attendance and involvement, and to identify member preferences so your club can evolve as needed

How to set up the financial structure of your club

Let's set up a financial structure that's simple and convenient for both you and your members. The more organized and efficient it is, the easier it will be to provide incredible value to your members.

What does a club treasurer do?

No matter how big or small your club is, you need a treasurer. Club membership fees are the lifeblood of your organization.

Here's what a club treasurer does:

1. Create and maintain a budget
2. Create financial reports
3. Make payments and issue receipts
4. Collect donations and/or fundraiser money and issue receipts
5. Comply with relevant tax laws
6. Distinguish and manage capital, revenue, and expenditure
7. Give feedback on how plans and projects can impact club finances

What are club membership fees?

• Club membership fees are non-refundable dues that members pay to the club to maintain their membership and to participate in group activities
• Club membership fees are paid at monthly, annual, or multi-year intervals
• They provide immediate and unrestricted funds to the club, which uses them to give value to its members

How to decide on club membership fees

When you establish (or update) membership fees, a lot of important questions come to mind: How much should I charge? How often should members pay? Should I have membership tiers? Can I increase fees?

The right membership fee structure strikes a balance between asking a fair price and covering your operational costs while giving value back to your members.

Monthly fees

• Affordable and attractive to new members
• Provide more revenue because people pay the full price
• Members can leave at any point, increasing the risk for an unstable revenue stream

Annual fees

• A discounted membership and a convenient one-time payment are attractive
• Provide a substantial and predictable source of revenue
• Difficult to understand whether members are receiving value and are willing to return next year

Multi-year fees (guarantees membership for 3–5 years)

• Greater savings and convenience
• Guarantee a higher retention rate
• The club must operate with less revenue while still providing enough value to retain members for up to five years

Flat rate vs. tiered memberships

Flat rate memberships are simple to manage but may not be affordable for all members, and some members may be willing to pay more in exchange for increased value without the option to do so.

Tiered memberships give members more flexibility and freedom, and allow members to move up or down the tiers — but they are more complicated to manage financially.

How to collect club membership fees

1. Collect dues on your website

If your club has a website, use it to share membership information and explain how members can contribute dues. While there are several PCI-compliant payment services available, many charge fees that can increase your club's operational costs.

If you'd like a safe and free option, use Pool. Sign up at Poolmoney.com and create a Pool for your club. Then, invite club members to join. Once they've signed up and joined the Pool, members can contribute dues directly from their linked bank accounts.

Pool uses best-in-class security and compliance practices to help protect members' money and personal information.

2. Use club management software

Club management software is a one-stop shop for online payments, financial reports, automated invoices, membership databases, etc. If you're running a small club, it might not be possible to spend at least $100 a month on software programs like Member Planet, Wild Apricot, and Aptus Soft.

3. Collect membership fees with club payment apps

Pool Pool is a fresh, new tool that makes it easier than ever to collect club membership fees. Sign up at Poolmoney.com and create your Pool for free — it's easy and only takes a couple of minutes.

Then, invite your club members to join the Pool. Once they've signed up and joined, they can contribute membership dues directly from their linked bank accounts. There are no fees to collect, manage, or spend money in your Pool.

PayPal Clubs have been using PayPal for years. While it's a reputable platform, it takes time to set up, it charges fees for every transaction, and you must transfer money into a bank account before you can spend it.

Venmo This app makes it easy to send and receive money for free. However, it does not offer a dedicated group account where you can manage and spend collected membership fees as Pool does.

Zelle This app allows members to pay directly from their bank account to yours. Like Venmo, this is solely a send-and-receive system. It does not allow you to collect, manage, and spend in a group account like Pool. You still need a club bank account — otherwise, club money mixes with personal money.

PayIt2 This service hosts an online collection page where club members can pay their dues. This service isn't free, and you have to wait 2–3 days before the collected fees are sent to the linked bank account.

Why you should use Pool to collect club membership fees

1. It's 100% free to use

Unlike apps like PayPal or club management software, Pool is free to use. Sign up at Poolmoney.com and create as many Pools as you need for free. There are no transaction fees, service fees, monthly fees, or overdraft fees — you keep 100% of the club membership fees you collect to invest directly into your organization.

2. Pool is a dedicated place for club membership money

Pool is where you can collect, manage, and spend money alone as the club treasurer, or together with other club leaders if they join the Pool and you assign them permissions.

Unlike most apps, you don't need to transfer money to a bank account to use it — club membership fees never mix with personal funds. Each Pool generates statements for greater transparency and easier bookkeeping.

If your club uses a tiered membership model, you can create separate Pools for each tier to stay better organized and to manage incoming fees more easily.

3. Spend directly from the Pool with the free Pool debit card

You can keep the collected funds in the Pool and spend directly from the Pool with the free digital debit card that comes with it. You can use it everywhere Visa is accepted to make payments and purchases on behalf of the club. Don't worry if you lose your receipts — every transaction is visible in the Pool.

For example, imagine you're running a book club. Each member contributes their monthly dues to the Pool from their linked bank account. When it's time to purchase the next book, the club Admin can use the Pool debit card to buy the book of the month for each member directly from the Pool.

Instead of one member fronting the cost and chasing down reimbursements, everyone contributes ahead of time and the expense is paid from shared funds. Pool keeps the contribution and purchase history organized, so members can easily see how club funds are being used.

4. Increased flexibility

Pricy club management software may be more than you need right now. Plus, it's a real hassle to cancel your subscription and switch to something else. Pools are a great way to collect and manage club money from your founding days up to your 10th anniversary.

Another perk of Pool is that you can add or remove Pool members with a couple of clicks, so your Pool always matches your club membership.

5. Easy bookkeeping

Being the Treasurer isn't daunting with Pool. Whenever you spend with the Pool card, the transaction is posted to your Pool. Pool generates statements to help you manage club finances accurately.

You can create separate Pools for each of your membership fee needs. If you collect both monthly and annual fees, different Pools ensure you collect money, not more stress. You can always consolidate money from multiple Pools into a new one if you choose to simplify things.

6. Easily remind members to pay their dues

Once members have joined the Pool, everyone has a dedicated place to view contributions, track club finances, and stay informed about upcoming membership dues.

You can also direct them to the Pool's description page, where they can review important details like due dates, amount due, and whether the payment is for a monthly fee, annual fee, membership tier, etc.

7. Pool is safe and secure

Pool uses best-in-class security and compliance practices to keep your money safe and your data private. All payment and personal information are encrypted end-to-end using SSL 256-bit encryption.

Having a club is a great way to connect with like-minded people and grow your community. Use this guide to create a strong financial structure for your club and conveniently collect club membership fees using Pool — so you can give your members lots of value in the months and years ahead.