Introduction to the Non-Profit Making Organisations resource.

Non-Profit Making Organisations

Introduction

This resource aims to give students help with financial statements from non-profit making organisations including clubs and societies. The nature of these types of organisations means that students should also be able to understand the effect of life membership schemes and donations.

The resource is relevant to:

• OCR: Module 2502, Final accounts
• AQA: Module 5, Further aspects of financial accounting

What are non-profit making organisations? Are they businesses that make losses? Are they businesses that are run badly?

Non-profit making organisations are also known as 'not for profit' organisations and this is the name we give them simply because they want to do something or provide something rather than make more and more money.

What kind of organisations are we talking about that just want to do something rather than making money? Well, is there a Youth club near you? Or a Garden Society? Or a Working Men's Club? They are probably examples of non-profit making organisations. Here's a bigger list!

• Associations
• Clubs
• Societies
• Unions
• Charities
• Universities
• Churches

Walk around town with your eyes open and you'll find loads of them!

• KISS: Keep It Simple, Stupid
• Simple but not Stupid
• The Analysed Receipts and Payments Account
• Accruals Concept
• Accumulated Fund and the Balance Sheet
• Calculating Losses of Stock and Cash
• The Remaining Issues

Non-Profit Making Organisations

KISS: Keep It Simple, Stupid

Why are these organisations important for accountants though? They are important because the accounts of these organisations are simpler than they are for a sole trader, a partnership or a limited company. The accounts are simpler for at least two reasons:

• The members of these organisations are normally the only people interested in them
• They are usually very simple organisations:
  • Not that many members
  • Not a huge amount of money involved
  • Not that many activities

In lots of cases the only thing that the Treasurer (the bookkeeper or accountant) of a club or society needs to do is to keep track of the cash and not a lot more than that. Well, why bother with having to set up a full set of ledgers for a Dog Club that has, say, 50 members paying subscriptions of £10 a year that meets 10 times a year and just has one dog show and an annual dinner each year? Not worth the bother is it?

There's profit Jim but not as we know it

Then again, just because an organisation doesn't intend to make a profit doesn't mean that it won't: lots of them do and in the end, all organisations have to make some profit or they won't survive.

Jargon buster

The cash account or cash book is called the Receipts and Payments Account and the Trading and Profit and Loss Account is called the Income and Expenditure Account. Profits are not called profits, they are called surpluses (or deficits if it's a loss) and the capital account isn't the capital account now, it's called the accumulated fund.

Profit Making Jargon	Non-Profit Making Jargon
Cash Book Profit and Loss Account Profit Loss Capital Account	Receipts and Payments Account Income and Expenditure Account Surplus Deficit Accumulated Fund

Let's just accumulate

The capital account is called the Accumulated Fund and that tells us that there are no private owners who have the right to keep the profits themselves or take an income from the organisation and so on - non-profit making organisations belong to all of their members together.

Guess what they call the balance sheet, by the way? It's still called the balance sheet!

Collecting data

What data will a fairly simple club or society collect? For lots of them, they will receive money for:

• Subscriptions
• Sale of refreshments
• Raffles and other competitions
• Sale of publications
• Annual dinner ticket sales
• Interest on deposit account at the bank
• Sale of old equipment

Receipts will come from such things as:

• Purchase of refreshments
• Purchase of raffle prizes
• Costs of running an annual dinner
• Purchase of new equipment
• Rent of hall

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Non-Profit Making Organisations

Simple but not Stupid

In the simplest of all cases, all we need to do at the end of a year is to prepare an account like this:

Receipts	Payments
Subscriptions	Purchase of refreshments
Sale of refreshments	Purchase of raffle prizes
Raffles and other competitions	Purchase of publications
Sale of publications	Costs of running annual dinner
Annual dinner ticket sales	Purchase of new equipment
Interest on deposit account at the bank	Rent of hall
Sale of old equipment

Then there would be a balance carried down which is either positive or negative depending on whether they received more than they spent or spent more than they received. Let's put some figures to this example now to see how it works; but don't forget, we are dealing here with a receipts and payments account which is the same as a cash book so there are no accruals and prepayments to take into account.

Receipts		Payments
Balance b/d	1,250	Purchase of refreshments	923
Subscriptions	1,219	Purchase of raffle prizes	337
Sale of refreshments	704	Purchase of publications	79
Raffles and other competitions	118	Costs of running annual dinner	314
Sale of publications	126	Purchase of new equipment	421
Annual dinner ticket sales	404	Rent of hall	110
Interest on deposit account at the bank	11	Balance c/d	1,962
Sale of old equipment	314
	4,146		4,146

That's it! Wasn't too bad was it? Now try a question of your own - very, very similar to the one you just saw!

 

Now try this - this question looks a lot different but the method is just the same as the previous question.

 

Final remarks: some problems with the Receipts and Payments Account

Clubs and societies prepare a Receipts and Payments Account that just tells us what has been received and paid in cash. This means that such non-profit making organisations might not always apply the accruals concept of accounting. Not applying the accruals concept is not a problem for the kinds of organisations we are dealing with here.

There are problems with the Receipts and Payment Account approach to accounting too:

• Apart from the cash balances, it doesn't show any assets or liabilities.
• There is no real indication, except in the simplest cases, of whether the organisation has made a surplus or a deficit or whether they have made a surplus or deficit on anything that it does.

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Non-Profit Making Organisations

The Analysed Receipts and Payments Account

Because we can't tell whether we have made a surplus or deficit on the things that a club or society does, we can prepare what is called an analysed receipts and payments account. The term 'analysed' is used as it breaks down the accounts into constituent parts to help give a clearer picture. Here's an example of what they are and what they do.

Worked Example

Here are the transactions of the Bristol Mountain Bikers Society for the first four months of the year. Prepare an analysed Receipts and Payments Account for the Society for this period.

Date	Details	Amount
January	Subscriptions	1,000
January	Sale of drinks	250
January	Cost of drinks	150
January	Postage costs	50
March	Subscriptions	600
April	Sale of drinks	150
April	Cost of drinks	90
April	Postage costs	30

Before we show the answer to this question, let's look at what we would have prepared until now:

Bristol Mountain Bikers Society Receipts and Payments Account for the period January to April
Receipts		Payments
Balance b/d	275	Cost of drinks	150
Subscriptions	1,000	Postage costs	50
Sale of drinks	250	Cost of drinks	90
Subscriptions	600	Postage costs	30
Sale of drinks	150	Balance c/d	1,955
Totals	2,275	Totals	2,275

That's what we would have done; now here's what we can do now. You might appreciate that analysed statements like these are ideally prepared in a spreadsheet.

Worked Example Solution

Bristol Mountain Bikers Society Receipts and Payments Account for the period January to April
Receipts					Payments
	Total	Sub- scriptions	Drinks	Postage		Total	Sub- scriptions	Drinks	Postage
Balance b/d	275				Cost of drinks	150		150
Subscriptions	1,000	1,000			Postage costs	50			50
Sale of drinks	250		250		Cost of drinks	90		90
Subscriptions	600	600			Postage costs	30			30
Sale of drinks	150		150		Balance c/d	1,955
Totals	2,275	1,600	375	0	Totals	2,275	0	240	80

See what's happened. It's a fairly simple example but it gives you the idea. Look at just one example of the additional information we've got now:

Sales of drinks	375
Costs of drinks	240
Surplus on sale of drinks	135

See? By analysing the receipts and payments in this way we can get summaries of all major items. Notice also that we used the term surplus rather than profit.

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Non-Profit Making Organisations

Accruals Concept

Take a look at the Between the Sheets glossary to see a broad definition of the accruals concept. Very briefly, the accruals concept tells us that sometimes people owe us money in January but won't pay until February. Similarly, someone may have paid their subscriptions for 2005 in November 2004 but unless we use the accruals concept this £30 will be shown in the Receipts and Payments Account for 2004 when it shouldn't be.

What all of this means is that a Receipts and Payments Account (RPA) needs to be changed to take account of accruals and prepayments so that it:

• follows the accruals concept
• shows us a true and fair value of the organisation

When we take these ideas into account we turn a RPA into an Income and Expenditure Account (IEA). An IEA is just another name for the Trading and Profit and Loss Account and if the organisation carries out any trading activities, such as running a bar or buying and selling plants, fertilisers and so on, it includes the trading account as part of the IEA.

Worked Example

Let's prepare an Income and Expenditure Account now by looking at a very similar example to For You To Do 1 but this time with a couple of adjustments.

1. In horizontal format prepare the IEA for the Russian Culture Society for the year 2004 from the following list of balances and adjustments that follow.
2. In vertical format prepare the IEA for the Russian Culture Society for the year 2004 from the following list of balances and adjustments that follow.

Receipts
Balance b/d	1,307
Rent of hall	101
Sale of old equipment	378
Costs of running annual dinner	290
Purchase of new equipment	516
Purchase of publication	65
Purchase of refreshments	1,004
Subscriptions	1,009
Purchase of raffle prizes	390
Raffles receipts	134
Sale of publications	107
Sale of refreshments	682
Interest on deposit account at the bank	11
Annual dinner ticket sales	448
Balance c/d
Adjustments
Subscriptions not yet received	161
Annual dinner ticket money still owing	45
Rent of hall paid in advance	11

Worked Example Solution

a. Make sure you agree with this horizontal style IEA:

Russian Culture Society Income and Expenditure Account for the period ended 31/12/04
Expenditure		Income
Rent of hall	90	Subscriptions	1,170
Costs of running annual dinner	290	Raffles receipts	134
Purchase of publication	65	Sale of publications	107
Purchase of refreshments	1,004	Sale of refreshments	682
Purchase of raffle prizes	390	Interest on deposit account at the bank	11
Surplus of Income over Expenditure	758	Annual dinner ticket sales	493
	2,597		2,597

Have you spotted this?

This is exactly how it should behave according to double entry bookkeeping principles and it's the same as this:

Here is how we have dealt with the adjustments - we have shown these adjustments in two ways, side by side:

1. as a simple calculation, and
2. in ledger account format

Subscriptions: this is revenue

			Subscriptions Account
Amount received, shown in the RPA	1,009		IEA	1,170	RPA	1,009
Plus amount is owing for this year but not yet received	161				Accrual c/d	161
Amount that should have been received during the year	1,170			1,170		1,170

Annual Dinner: this is revenue

			Annual Dinner Account
Amount received, shown in the RPA	448		IEA	493	RPA	448
Plus amount is owing for this year but not yet received	45				Accrual c/d	45
Amount that should have been received during the year	493			493		493

Rent of Hall: this is a cost

			Rent of Hall Account
Amount paid, shown in the RPA	101		IEA	101	RPA	11
Less amount paid in advance	11				Accrual c/d	90
Amount that should have been paid during the year	90			1,170		1,170

b. Now the vertical style IEA for the Russian Culture Society for 2004:

Russian Culture Society Income and Expenditure Account for the period ended 31/12/04
	Subscriptions	1,009
plus	Subscriptions not yet received	161	1,170
	Raffles receipts		134
	Sale of publications		107
	Sale of refreshments		682
	Interest on deposit account at the bank		11
	Annual dinner ticket sales	448
plus	Annual dinner ticket money still owing	45	493
				2,597
	Less: costs for the period
	Rent of hall	101
less	Rent of hall paid in advance	11	90
	Costs of running annual dinner		290
	Purchase of publication		65
	Purchase of refreshments		1,004
	Purchase of raffle prizes		390	1,839
	Surplus/(Deficit) for the period			758

Notice how the adjustments have been incorporated very nicely within the vertical format. It is possible to do the same with the horizontal format but it doesn't look so nice!

These examples help us to learn the Golden Rules of Adjustments:

Revenues		Costs
Owing but not received in the period	Add to RPA amount	Owing but not paid in the period	Add to RPA amount
Received but relates to next period	Subtract from RPA amount	Paid but relates to next period	Subtract from RPA amount

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Non-Profit Making Organisations

Accumulated Fund and the Balance Sheet

We already know that the capital account of a non-profit making organisation is called the accumulated fund... but where is it? Why haven't we seen one yet? Well, we didn't want to make your life too much of a misery all at once by giving you too much to think about so we saved it until last! More than that, we have put the accumulated fund with our balance sheet explanations... we think it makes sense!

The accumulated fund works in exactly the same way as the capital account:

Accumulated Fund
Balance b/d	XX
± Surplus/Deficit of income over expenditure	XX
Balance c/d	XXX

By far the best way of sorting it all out is to work through an example although in the first case we won't prepare a full balance sheet.

Worked Example

Buckingham Sports and Social Club - Receipts and Payments for the year ended 31/08/04
Receipts	£	Payments	£
Cash in hand 01/09/03	3,000	Bar purchases	24,000
Interest	1,500	Purchase of equipment	20,000
Subscriptions	36,000	General expenses	26,000
Bar sales	50,000	Competition costs	3,000
Competition receipts	2,000	Cash balance 31/08/04	19,500
	92,500		92,500

Other Balances as at 01/09/03
Clubhouse and land	100,000
Equipment	25,000
Bar stock	4,000
Investments	20,000
General expenses owing	500
Subscriptions due	1,000
Additional information as at 31/08/04
Bar stock	6,000
Bar creditors	400
General expenses prepaid	300
Subscriptions prepaid	900
Equipment held on 31/08/03 to be depreciated by	20%

Required

1. Prepare a statement showing the club's accumulated fund at 01/09/03
2. Prepare the club's income and expenditure account for the year ended 31/08/04
3. Prepare the club's balance sheet as at 31/08/04

Worked Example Solution

a. The club's accumulated fund at 01/09/03:

This first part is probably very similar to many questions you tried when you first learned the accounting equation:

assets = liabilities + capital

Strictly speaking, we need to change that for non-profit making organisations to be:

assets = liabilities + accumulated fund

Then you would go on to working with this equation, including the evaluation of the capital balance at the start of the year given a list of assets and liabilities. What you are about to see is exactly the same as that.

Buckingham Sports and Social Club Accumulated Fund at 01/09/03
Assets		Liabilities + Accumulated Fund
Cash in hand 01/09/03	3,000	General expenses owing	500
Club house and land	100,000	Balance c/d	152,500
Equipment	25,000
Bar stock	4,000
Investments	20,000
Subscriptions due	1,000
	153,000		153,000

b. Prepare the club's income and expenditure account for the year ended 31/08/04:

The IEA that follows is again given in vertical format and where possible we have just inserted the final surplus or deficit figure rather than putting all of the detail in. For example, we have opened an account for subscriptions and just shown the final figure on that account in the IEA. The same applies to the bar and to general expenses. This is a very good and efficient way of working, by the way!

Buckingham Sports and Social Club Income and Expenditure Account for the year ended 31/08/04
		Note
	Subscriptions for the year	1		34,100
	Surplus on bar a/c	2,3		27,600
	Interest			1,500
	Gross surplus before deficit on competitions			63,200
	Deficit on competitions	4		1,000
	Gross Surplus			62,200
less	Expenses
	General expenses for the year	5	25,200
	Depreciation of equipment	6	9,000	34,200
	Net surplus carried forward to accumulated fund			28,000

Here are all of the notes to explain the adjustments we have made for the IEA.

Notes
1	Subscriptions a/c	Dr	Cr
	Balance b/d	1,000
	Subscriptions		36,000
	Prepayments c/d	900
	IEA subscriptions for the year	34,100
		36,000	36,000
2	Bar a/c
	Bar sales		50,000
	Bar stock as at 31/08/03	4,000
	Bar purchases for the year	24,400
	Bar stock		6,000
	IEA surplus on bar a/c	27,600
		56,000	56,000
3	Bar purchases a/c
	Bar purchases	24,000
	Bar creditors c/d	400
	Bar purchases for the year		24,400
		24,400	24,400
4	Competitions a/c
	Competition receipts		2,000
	Competition costs	3,000
	IEA deficit on competitions		1,000
		3,000	3,000
5	General Expenses a/c
	General expenses owing at 01/09/03		500
	General expenses	26,000
	General expenses prepaid c/d		300
	IEA general expenses for the year		25,200
		26,000	26,000
6	Equipment a/c
	Equipment as at 31/08/03	25,000
	Purchase of equipment	20,000
	Depreciation		9,000
	Balance c/d		36,000
		45,000	45,000

c. Prepare the club's balance sheet as at 31/08/04:

Finally, the balance sheet - and it balances!

Buckingham Sports and Social Club Balance Sheet as at 31/08/04
Fixed Assets
Clubhouse and land			100,000
Equipment			36,000
Investments			20,000
			156,000
Current Assets
Bar stock		6,000
General expenses prepaid		300
Cash balance 31/08/03		19,500	25,800
Total assets			£181,800
Accumulated Fund b/d		152,500
Net Surplus carried forward to accumulated fund		28,000
Accumulated Fund b/d		180,500
Bar creditors	400
Subscription prepayments	900	1,300
			£181,800

Even though that isn't an especially difficult question, it does take time to work through it. However, any good bookkeeper will have learned to be methodical, logical and careful and it is that approach that will help you to succeed with such questions.

Why not try another, very similar question to the Buckingham question now? Go on, you know you want to! Here it is.

 

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Non-Profit Making Organisations

Calculating Losses of Stock and Cash

In the busy and often tempting environment of small organisations, mistakes can happen and so can theft. A barman in a busy bar or lounge can be forgiven from time to time if a few bottles of beer go missing or the till is short of a few pounds. However, what we are concerned with here is working out whether beer or cash have gone missing.

In some cases we might assume that accountants, auditors and the police find that a barman had 'lost' some beer and some cash from their bar. To carry out our own investigation, here is what we need:

Stock

• A true record of the opening stock, taken from the annual, monthly or weekly physical stock take or stock check
• Accurate delivery records from the brewery, wholesaler or supplier
• Accurate sales records
• A true record of the closing stock, taken from the annual, monthly or weekly physical stock take or stock check

That's it! When we have all of that, there's nothing we don't know or can't prove!

Cash

We really need the same information as for stocks of goods for sale, since cash is really only a stock of notes and coins. This is what we need then:

• Bank statements and statements of cash in hand for the start of the period - cash balance b/d
• Accurate records of all cash received
• Accurate records of all cash paid
• Bank statements and statements of cash in hand for the end of the period - cash balance c/d

Of course, with a large club that might have several bars, a café, restaurant and a sports hall and a gym, reality can be more complicated than a simple list suggests but the principles are the same whatever the size of club or organisation.

Worked Example: Stock

What do you make of the following information?

The basic data
Stock at start	1,000
Purchases	10,000
Sales	15,000
Stock at end	400
The average mark up on cost of sales is 30%

Working directly and only from the basic data we can estimate the cost of sales and sales using the formula:

Opening stock
+ Purchases
- Closing stock
= Cost of sales
+ Estimated mark up
= Estimated Sales

Based on the data supplied
Opening stock	1,000
Purchases	10,000
Available for sale	11,000
Closing stock	400
Cost of sales	10,600
Estimated mark up (30%)	3,180
Estimated sales	13,780

See the problem? We have been told that the actual sales were £15,000 but using the formula we find that sales seem to be £13,780. Here's what we do to resolve this issue:

Assuming that the figure for sales of £15,000 is correct then working backwards from actual sales we can find what closing stocks should have been. You might find the right hand column in the table that follows useful as it confirms the percentages to work with when working backwards from the actual sales.

Calculations from what should have happened
Opening stock	1,000.00
Purchases	10,000.00
Available for sale	11,000.00
Estimated closing stock	538.46
Estimated cost of sales	11,538.46	100%
Average mark up on actual sales	3,461.54	30%
Actual sales	15,000.00	130%

So actual sales are £15,000, 130% of the estimated cost of sales. Therefore, the estimated cost of sales is equal to:

Estimated cost of sales =	Actual sales	* 100% =	£15,000	* 100 = £11,538.46
	130%		130

Then we find the estimated value of closing stock by subtracting the estimated cost of sales from the value of goods available for sale:

= £11,000 - 11,538.46 = £538.46

Conclusion: We have found a problem. The closing stock check revealed that there is £400 worth of goods in stock yet our calculations show that there should be £538.46 worth of stock. The committee of the organisation would now investigate what had gone wrong and take the appropriate action.

 

Worked Example: Cash

Remember we said that holding cash really means having a stock of cash? So it should come as no surprise that finding out whether cash is missing is remarkably like finding out if stocks are missing.

What do you make of the following information?

Cash and bank at start	1,063.54
Payments	16,704.25
Receipts	17,693.50
Cash and bank at end	723.03

In a sense, the workings are easier than with stock, as the following solution shows.

Worked Example Solution: Cash

The logic of the solution to this problem is:

Cash and bank at start
+ Receipts
= Available cash
- Payments
= Estimated cash and bank at end
- Actual cash and bank at end
= Cash discrepancy, if any

Applying that template to the data in the question gives:

Based on the data supplied
Cash and bank at start	1,063.54
Receipts	17,693.50
Available cash	18,757.04
Payments	16,704.25
Estimated cash and bank at end	2,052.79
Actual cash and bank at end	723.03
Cash appears to be missing	(1,329.76)

So £1,329.76 of the cash is missing, or unaccounted for. What should we do now? We are dealing with a year's accounts so need to see the problem in that context. A total of £1,329.76 for a year is just over £25 a week and that's probably a serious enough problem to take action. Management by exception tells us how serious a problem it is and it gives us clues as to what to do with it!

Management by exception (MBE) means that we leave things alone unless they are a problem - unless they are exceptional, that is. Here's a really good example of MBE - would you ever change the tyres on your bicycle if they weren't causing you a problem and they weren't breaking the law? No, you wouldn't unless you wanted a new colour or style. In the same way, if a business has plenty of cash in the bank, why worry about it? In this case, though, more than £1,300 is missing and that is exceptional. £1.30 over a year wouldn't be exceptional and neither would £13. £130 could begin to be a problem. Can you see how we look at things in an exceptional way now?

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Non-Profit Making Organisations

The Remaining Issues

There are three issues that we can deal with relatively quickly and which will complete this introduction to the accounts of non-profit making organisations.

• Life membership fees
• Joining up fees
• Projecting the fees needed

Life Membership Fees

Many clubs and societies have life membership schemes where we can pay a relatively large amount at the beginning and then never pay any more membership fees... ever. Take a look at a few clubs and societies and see how many of them do that.

The accounting problem with life membership is to solve the problem - how long is life? Ah, the eternal question!

In some cases, life membership could just be a year or two, for example, if someone pays their membership fee and then, sadly, dies after a short time. On the other hand, the 18 year old who becomes a life member of a wildlife society could be an active member for 60 or 70 years or even more.

The solution to the problem is that the organisation has to set a policy on how long life will be. That is, the club will agree that all life membership fees are to be spread over 10, 15 or 30 years and then each year this calculation is done:

Jack Smith signs up for life membership from 1 January 2004 by paying £150. The club's life membership term is 20 years so each year £7.50 (£150 ÷ 20 years) will be charged to the IEA for Jack. Life membership works a bit like depreciation, doesn't it?

Watch out for tricky questions here because life membership fees will change. Old members die and new members join so there will be changes to the life membership account to take care of. In an exam, all of these issues will be set out for you.

 

Joining Up Fees

Lots of non-profit making organisations have joining up fees and they might be a bookkeeping problem too. The solution to this problem is really the same as the life membership problem - the organisation itself decides what to do with its joining up fees. Here are two suggestions:

• Put them into the IEA when the member joins.
• Spread them over two or three years so that if Jill Smith joins and pays the joining up fee of £30 and we spread it over three years, then we will put £10 (£30 ÷ 3) for each of her first three years of membership in the IEA under the heading of joining up fees.

Questions relating to joining up fees aren't difficult, so let's go straight to...

 

Projecting the Fees Needed

How does a non-profit making organisation know how much its fees should be? That is, how does the Flora and Fauna Society know that it should have an annual fee of £15 or £500?

Simplest solution of all - have just one level of membership and then:

Average cost per member = total costs ÷ total membership

The society can then either charge that amount or add something on to cover inflation, things they hadn't thought about and unexpected costs such as the need for a new item of equipment.

Worked Example

A 200 Club needs to work out how much to charge per ticket. Imagine that your local church has decided to have a 200 Club. The 200 Club aims to sign up 200 people a year who will pay exactly the same amount as each other. Every month some names are drawn out of a hat and these people are paid an agreed amount of money by way of a prize. At the end of the year the 200 Club aims to donate its surplus to the church.

All we know so far is how many members the 200 Club wants. What we don't know includes:

• The likely actual number of members (it can't be more than 200 but it could be fewer)
• The value of the prizes
• The amount to donate to the church at the end of the year.

Imagine that we have talked to the treasurer of the 200 Club and he/she has provided us with the following additional information. St Birinus Church 200 Club needs to decide how much to charge for membership on the basis of one of the following two suggestions:

	Suggestion 1		Suggestion 2
Monthly prizes	1	£50	1	100.0
	2	50	2	75.0
	3	20	3	22.5
	4	20
	5	20
	6	20
	7	20
Likely number of members		175		190
Amount to donate to St Birinus at year end		£2,000		£2,000

Calculate the cost per 200 Club ticket for suggestion 1 only.

Worked Example Solution

Total prize money per year	(50+50+20+20+20+20+20)*12= £200 *12 = £2,400
Amount to donate to St Birinus at year end	£2,000
Total amount of money to raise per year	£4,400
Average annual fee per member	£4,400 ÷ 175 = £25.14

 

Other Resources

• Interactive Worksheet on the Accounts of Clubs and Societies, Ken Delaney-Moore, Sheffield Hallam University

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