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Revenue & Expenses

Club funds allow homebrew clubs to support a variety of activities. Whether a club is just starting, or is long established, will determine the priorities each club focuses on. One of the most entrusted positions within a club is that of Club Treasurer, and with this position, careful tracking of all expenses and revenues is essential.

Because many homebrew clubs are relatively small, the first challenge for many clubs is finding an appropriate financial institution that will allow for an account to be set up in a clubs name. Many banks will not set up an account in a clubs name. Credit Unions can be more flexible, but if all else fails, a checking account set up in both the club treasurers and presidents name can usually be set up. As members vote for new officers, this typically requires all names on the account (old and new) to visit the depository institution to meet and sign off on these changes. While logistically challenging, the value of a simple checking account for a club can't be overstated, as it allows a great deal of flexibility and accountability.

This section will focus on common revenue and expense sources for homebrewing clubs. However, readers are highly encouraged to add their own clubs unique experiences with club finances. By sharing these, clubs are better able to serve their members and grow stronger.

REVENUE SOURCES:

Dues

The primary source for many club's revenue are membership dues.  Dues are typically paid on an annual basis, and can run from $10-$25. Clubs can also pro-rate dues. In one of the clubs where I am currently the treasurer (Ann Arbor Brewers Guild - AABG), dues are $15 a year. This equals $1.25 a month, so if a new member joins during the year, it is easy to determine what they owe. However, for members who delay renewing (say in March for the year), we continue to ask them for the full year's dues.

Additionally, over the years, we have developed different classes of membership.

  • Family membership - For $20 a year, a family membership has been offered because many member's spouses, roommates and/or significant others didn't actively participate in the monthly meetings, but wanted to join a club's annual Beer-B-Que or obtain separate Local Homebrew Supply discount cards (a member benefit) so that they could purchase gifts with the club discount for their friends or partners.
  • Discounted Long Term membership - For members who wish to pay several years in advance, this membership was developed. While the discount is small ($40 for 3 years for an individual membership, $50 for a 3 year family membership), it provides members the option to pre-pay, save a little money, and beef up the clubs treasury. There are two things that are critical about money that I have learned. 1. More is better than less. 2. Now is better than later!
  • Out-Of-State membership - Because the AABG has been around since 1986, and with the club's email distribution list being one of significant feedback for members to obtain information, several members who have moved out of state have requested to stay members. For these members, we have created this form of discounted membership - $15 for three years, $50 for life.
  • Non-paying members - We allow people to request to be on the email distribution list, but until they are a member in good standing, they can only receive the club emails, and can not post to the distribution list.
  • Free membership - We have developed two free memberships.
    • The first is for exceptional service to the club or the homebrewing community.  Honored guests, competition organizers, whatever is deemed appropriate.
    • The second is for members who have fallen into hard times, such as losing their jobs. Because of the sensitivity of the later class, members just have to attest to the treasurer that this is the case. They can elect to pay back dues when they get back onto their feet again or not. The idea is that after one loses their job, it would be adding insult to injury if they had to prioritize other more basic necessities and lose the camaraderie and friendship of the club.

And here is a tip to encourage member's to pay their dues. A day or two before each club meeting, the treasurer sends out a note through the club email distribution list. I simply title mine "The Good List". Almost every month I receive stragglers dues this way.  And we also accept PayPal, and add the transaction fee to the amount.

 

Merchandise Sales

Anyone who has attended local beer festivals, a National Homebrewers Conference or even just walked into a local brew pub has probably spied someone wearing an article of clothing with a homebrew club logo on it. Virtually all homebrewing clubs come up with both a name and a logo,  and putting these onto a variety of items acts both as a source of pride and a form of marketing for the club. And selling these items to club members should also be a source of revenue.

The most popular logo'ed merchandise item is the club shirt. T-shirts and polo's are a great way for members to display their club affiliation. Hats, children and infant ware are other possibilities.

Additionally, tasting glasses, engraved with the club logo (and perhaps 1 & 2 ounce pour lines) are a great way to encourage moderation and show off the club logo.

Business cards with the club's logo, website and meeting information can also work terrifically in generating leads from current members.

These are some of the most common merchandise items. Clubs typically round up in $5 increments based on the costs. Shirts can be a difficult proposition for a fledgling club, as the discounts usually occur around the 2 or 3 dozen mark. Getting pre-commitments is the best way to go so that the club treasury can bear the upfront purchase, but then reap some dividends at subsequent meetings as the shirts are sold off. It is usually a good idea to order some extras as well, for future members,

Host a Competition

If the club has the inertia and resources (both in up-front funds and access to certified beer judges), a competition is not only a great fund raiser, but allows for a group activity that is rewarding on multiple levels. It can take a couple of years to generate the number of entries necessary to break even and then earn some funds, but it also allows members to participate in judging, stewarding, and pre-events such as calibrating their expectations.

50/50 Raffles

An easy way to supplement the club's coffiers is to purchase a roll of raffle tickets and sell these at the meeting. A dollar apiece, six for $5 allows members to participate in a game of chance whereby they can win half the pot, and the club earns the other half. Please make sure that you review your local regulations regarding this activity to ensure compliance with the law.

Silent Auctions

A great way for members to get rid of their unwanted equipment or excess ingredients, a silent auction can also be held in junction with a club event such as a Beer-B-Que or holiday party. A member asks their Local Homebrew Supplier to see if they have any items that they are willing to donate to the cause. Simply place the available items on a table with a signup sheet for each one, and members can add their name and see if their bid holds until the end.

Events

Most clubs host a variety of events. These can be annual Beer-B-Que, holiday parties, brewing demonstrations, Big Brew day celebrations, Pub Crawls and other events. Typically food is served at a number of these events, and decorations, prizes and other expenses can incur. It is up to each club to determine if these events will be gratis for paid up members, or if they want to defray some or all of the expenses with an event fee. The obvious benefit of doing so is to offset some or all of the event's expenses.

EXPENSES:

So now that the club has some funds, what are you going to spend it on? Because this list can be added to infinitum, I will only mention some of the better known expenditures that I have run into in my dealing with some local clubs.

Equipment

  • All grain system for club rental
  • Jockey box
  • Pop-up tent
  • Brewing related book titles for a club library
  • Beer Gun
  • Purchase Logo'ed items
  • Club Banner for events
  • Business cards promoting the club
  • Club Meeting space rental
  • Events
  • Thank you gifts
  • Plaques/trophies for club competitions
  • Purchasing example of beer styles for calibration./educational purposes
  • Off flavor Sensory sampling supplies
  • Entry fees and postage for Club Only competitions
  • Membership to Beer-of-the-Month Club
  • Flowers/gifts for members in good standing who suffer a loss
  • Name Tags for meetings
  • EZ Pop-up tent
  • Water bottles for demo's
  • Laminator for ID Cards
  • Card stock
  • Club Bar
  • Up front money to purchase shirts, hats, and other logo'ed items for re-sale
  • Supporting local/state homebrew competition as a sponsor
  • Breatalyzer
  • Offset members entrance fee to a national Homebrewers Conference
  • Port-A-Potty for events
  • Postage for snail mail newsletters, Club Only Competitions, etc.

If you have any questions or suggestions, please contact me at crispy275@comcast.net.