As the new financial year is underway we wanted to make sure you’re all up to date with the easiest ways to organise your club’s finances. Below are just a few top tips that will help your club to stay on top of its money, as well as utilising benefits such as Gift Aid:
Managing your Money
- Set up a routine to maintain control of your money month to month
- Check your club bank accounts at the end of each and every month – check ins and outs and see if there are any differences
- Keep personal finances separate from club funds
- Keep receipts for all expenses and make sure they are in line with your club policy
- At end of financial year prepare annual accounts and check requirements dependent on the type of club
Responsibility of keeping a budget usually falls on the Club Treasurer but the committee should all be aware of how the budget works. To determine your budget, it is good to compare to the previous year’s figures.
It’s best to have both a short-term budget and a long-term budget:
Short term - This should focus on your income and costs for the next year and will keep you focussed on your everyday finances.
Long term – This will cover costs over a longer period, say the next 3 – 5 years and will help you plan for the future, and in particular any one-off projects you want your club to undertake
Tax and Sports Clubs
Tax is an issue for many sports clubs. Understanding what you need to know is the first step in making sure your sports club meets its obligations. If you don’t, your club could be at financial risk.
The areas most relevant to sports clubs are:
- Business rates
- Corporation Tax
- Sale of Land
Gift Aid is a government tax relief that adds an extra 25% on top of donations made by UK tax payers. Your club can become a community amateur sports club (CASC) and with this accreditation, you will become a registered charity and will be eligible for tax relief on income, gains and profits from certain activities, along with business rates relief and Gift Aid repayments on donations.
The benefits of Gift Aid are simple – your club can claim an extra 25% in tax from each donation made, meaning the possibility to increase the amount of funding for your club and leading to more opportunities for athletes and opening gateways to better things for the club itself.
This is just a taster of all the ways you can stay on top of your club’s finances. We want to make sure you’re always receiving the most up to date information so stay tuned for our new training sessions where will be discussing all of these in more detail with our panel of experts!
If you’d like to know anything else about club finances we’d love to hear from you, so tweet us @ClubMatters and get your questions in!