Non-Profit Making Organisations
For You To Do 14: Solution
| Total prize money per year | (100+75+22.5)*12= £197.5 *12 = £2,370 |
| Amount to donate to St Birinus at year end | £2,000 |
| Total amount of money to raise per year | £4,370 |
| Average annual fee per member | £4,370 ÷ 190 = £23 |
Whilst the St Birinus example is simple in lots of ways, it does show the nature of the fee fixing problem. The main problem for students, though, is that the St Birinus example is really only a single product type of problem. In reality, as we saw with the WWF and the Gt Yarmouth Gilbert and Sullivan Society, many organisations have several levels of membership or several kinds of activity - multi product or multi activity organisations.
In reality, this is a budgeting question and in an examination you would be given all of the information you would need to complete the answer to the question.