A GUIDE TO STARTING A SPORTS CLUB

Administration and management

In this section we explore the different aspects of managing and administering your
sports club. Of course, your club is primarily about sport, and few people want to
spend a lot of time on the mechanics of committee meetings, constitutions, rules and
policies.

However, it will help your club to run much more smoothly if you get these basic
arrangements in place relatively early. Then, when you do encounter a problem or
two, you have some guidelines to refer to. As your club grows and becomes more
successful you will probably need to re-visit the constitution and policies and update
them to reflect your changing circumstances.

Constitutions
A constitution sets out the purpose and rules of your sports club. It is the basic
document which helps to ensure smooth and proper running of your affairs. Typically,
the constitution will set out:

The objectives for your club (e.g. what you want to do or provide for your members).
the different forms of membership (e.g. adult, junior, social) and perhaps their subscription
rates
The rules by which your club will operate.
How the affairs of the club are to be managed (e.g. by officers and a committee).
How the members control the club, usually through an annual general meeting.

All sports clubs should have a proper constitution. The accompanying templates in the
Resource side panel offer very detailed examples of a constitution, however not all the
elements will be relevant to every club and they should be amended or deleted as
appropriate. For example 'Members of the management committee' identifies eight
committee officers. Your club’s constitution may need to reduce or increase the
officers dependant on the number of volunteers available to fill the positions.

Meetings
All sports clubs require a structure under which their club meetings are organised. The
club's meetings should be referred to in the constitution in which there are usually
two types of general meeting; the Annual General Meeting (AGM) and the
Extraordinary General Meeting (EGM). The rules for these general meetings are also
stated in the constitution i.e. quorum for a meeting, minimum number of days notice
required etc.

General meetings of the club

The main reasons for holding an Annual General Meeting are:

To consider the club’s annual report

To elect officers
To discuss and vote on amendments to the constitution or club rules
To produce the annual accounts
To produce the chairman’s annual report.

It is important to make sure that the AGM is well publicised and welcoming to ALL
members. The members need to be involved in the AGM to ensure that the club’s
decision making process is fair and representative of the club. It is also an opportunity
to recruit ‘new blood’ onto the committee.

The secretary is normally responsible for making all of the arrangements for the
meeting. Usually notice for an AGM is a minimum of 21 days, therefore the venue,
date and time should be arranged well in advance. The members should be notified
and invited to make nominations for the election of officers.

Extraordinary General Meetings are called upon if at least a third of the club’s
members (or some other proportion specified in the constitution) wish to amend a
club rule, amend the constitution or discuss any other important, urgent matters
which cannot wait until the AGM.

Committee meetings
Committee meetings are organised by the elected officers to manage the day to day
running of the club. Regular meetings ensure that the club is successfully planning,
communicating and monitoring progress. It is vital to make sure that these meetings
are kept short, to the point and are completely necessary, otherwise you may lose the
interest of many officers. The Running Sport: The Role of the Chairperson booklet
(see Resources side panel) is an excellent guide for club chairs. Many clubs find it
helpful to develop 'standing orders' setting out rules and guidelines for the conduct of
committee meetings.

The role of the officers on the club’s Management Committee vary from club to club,
depending on the sport and the size or level of the club. Some clubs only need to
have one management committee whilst other larger clubs may have a series of sub-
committees i.e. Playing committee, Junior committee or Coaches committee which are
all overseen by the Executive committee.

There are many varied roles and workloads taken on by the officers on these
management committees. Unfortunately in many clubs the same few officers are
continually relied upon to take on the majority of the work. Another section of this
website provides more detailed information about the range of officer roles and job
descriptions (see Articles panel).

In larger organisations it's particularly important to distinguish the strategic and

governance role of the main board/committee from the operational and managemenet
roles of the various officers, task groups and sub-committees. Without a clear
distinction, the main board or committee becomes overwhelmed in the management
of the day-to-day details. See the Articles side panel for useful guidance on this.

It's easy to waste time during meetings! Knowing how to communicate effectively is
a great asset to the efficient running of a club. If you'd like to brush up on this,
download a copy of runningsports: How to Communicate Effectively from the
Resources panel.

Policies and procedures

As your sports club grows and develops its range of activities, you will probably find it
necessary to establish some club policies that set out in more detail how the club and
its members should operate. Typically, these policies might cover such things as:

The requirements for a person to become a member of your club (e.g. their standard of
play, or the nature of their contribution)
The standards of conduct expected of members or officials
Arrangements for protecting children, young people or vulnerable adults from any form of
abuse
Arrangements for protecting members and the general public from any potential danger
arising through the use of your premises, facilities or equipment.
The range of policies and procedures that you might require will very much depend on
the nature of your sport and the type of activities that you choose to undertake.
Listed in the righthand column, you'll find links to articles covering some of the more
typical policy areas. In most cases, these articles will also provide you with a
template policy to download and adapt for your circumstances.

A quick guide to policies and procedures

This section contains advice and guidance on the following common areas of club
policy and procedure as listed in the Articles side panel:

Membership Policy - membership criteria and membership forms, including addional

provisions for junior members
Equal Opportunities Policy - establishing an equity statement and its implementation
through an equal opportunities policy
Code of Conduct for Fair Play - ensuring that your members are familiar with minimum
expected standards of participation and play
Child protection - procedures to ensure that children, young people and vulnerable
adults participate in your club's activities without risk of abuse
Health & Safety - covering a range of issues including duty of care, risk assessment,
insurance, first aid, emergency procedures, etc.
Club Development Policies are covered in the section on club development planning
Ethics in sport - 'ethics' is the now generic terms for all aspects of fair and equitable
conduct in both the management and running of sport . See also the excellent
runningsports: Getting it Right booklet (listed in Resources panel) which provides a guide
to sports ethics, disciplinary procedures and appeals.

Sports club governance

'Governance' refers to the process of running your sports club, making decisions and
ensuring that it is properly accountable; this differs from 'management' which is
concerned with organising the day-to-day activities of the club. To be an effective
and accountable organisation, you need to ensure that you have good governance
arrangements in place.

The Home Office also runs a very useful website called The Governance Hub which
provides codes of conduct and useful guidance on all aspects of voluntary and
community sector governance matters. It's linked from the Resources panel. The
site refers specifically to England and Wales though many of the principles will apply
elsewhere.The national Sports Councils run several Modern Sports programmes
designed to support the committees and boards of sports organisations to deliver
efffective governance. Contact your national Sports Council for more information.

Club structures
When establishing your club, the members will
need to select the most appropriate form of legal
structure for the organisation so that it can be
formally recognised, open a bank account, enter
into agreements for hiring facilities, and be
accountable to the membership. In this section, we
explore the two main legal structures - an
unincorporated association, and a limited company
- and provide some additional notes about
registering as a charity. This is a complex subject
and we strongly recommend if you are considering
establishing as a Limited Company that you seek
professional advice.
Unincorporated Association
This is the most common structure used by the vast majority of sports clubs. The
members come together and agree to establish the club with its own rules and
operating procedures. These are then set down in the Constitution (see See Also
panel for more on Constitutions).

This is the simplest form of club structure, the easiest to run and operate, and the
one that most members will be familiar with. It's an "Association" because the club
does not have a separate and distinct legal identity. For legal purposes, the club is
regarded as a voluntary coming-together of its members - literally, an association of
members.

An Unincorporated Association structure is most suitable for:

The majority of small local clubs

Clubs without significant buildings, equipment, or financial assets
Clubs that provide services primarily for their own members (rather than the general
public)
Clubs that are not engaged in high-risk sports where accidents are far more likely and
potentially costly if negligence could be proved
Clubs that protect themselves against third party liability and negligence through a
standard insurance policy for their sport

One consequence that you should be aware of with this type of structure is that - on
the rare occasions that something does go seriously wrong - ALL the members of the
association are liable. So, if the club goes bankrupt, all the members could be liable
for the debts, irrespective of their individual financial circumstances. Because this
liability is unlimited, those with more wealth could be hit harder than those with
relatively little money.

On the positive side, unincorporated associations are simple to set up and run. You
don't need permission from anyone else. You create your own constitution and run
your own affairs within these rules. With a constitution, you'll be able to open a bank
account and organise your finances. If you want to borrow money, one of your
members will probably need to provide the lender with a personal guarantee or
security for the loan.

Most clubs are able to insure themselves against the more common risks and your
National Governing Body is likely to offer an insurance scheme that you can join.

Incorporation as a Limited Company

Forming or converting your sports club to a Limited Company enables your club to
become established as a legal entity in its own right, separate from the individual
members. There are two forms of Limited Company:

1. Companies with an issued share capital, where ownership and control lies with the
shareholders. This form is generally inappropriate for sports clubs.
2. Companies limited by guarantee, where the members of the company each guarantee to
pay a nominal sum (usually up to £5 each) in the event of the company being unable to
meet its obligations. This form is usually used for sports clubs wishing to incorporate as a
company.

There are several advantages to this structure. Because the club is a distinct legal
entity, it is easier for the club to enter into contractual arrangements e.g. to borrow
money, own buildings, or stage very large events. The club itself, rather than the
individual members, are responsible for the club's obligations and debts (unless one
of the officers has acted negligently or fraudulently, in which case the individual
remains personally liable). And the individual members can only be held responsible
for the debts and obligations of the club up to the nominal value of their guarantee.

The regulation and administration of Limited Companies is more onerous, and there
are legal penalties for failure to comply. All Companies require various legal
instruments such as a Memorandum and Articles of Association, and these must be
registered with Companies House. The annual accounts must be presented in a
prescribed form for Companies and also lodged with Companies House where they are
open for public inspection. All Companies are subject to the provisions of Company
Law; they are run by "Directors", and some club members may potentially be
prohibited from becoming a Director because of their previous involvement with other
companies or their financial status.

You should consider forming as a Limited Company if one or more of the following
apply to your club:

You own a high value of assets in the form of buildings, facilities, or financial reserves.
However, some clubs have found a significant capital gains tax may be liable if they own
considerable assets.
You are engaged in selling significant volumes of goods and services to non-members
such as training courses, accreditation, equipment, lettings, books and other materials
You are planning to organise a major event where there is a potential risk of significant
financial loss (in which case, you might consider establishing the event as a limited
company owned by your club)

Mutual Society and limited liability

In recent years, a few clubs seeking to become incorporated and obtain the benefits
of limited liability have begun to explore registration as a Mutual Society. The
relevant legislation - the Industrial and Provident Societies Act, 1965 - is relatively
little known and was created to regulate such organisations as cooperatives, mutuals,
housing associations and working mens' clubs. In many respects it is ideally suited
for larger membership sports clubs.

Mutual Societies are overseen by the Financial Services Authority, and they must
approve all rule changes and receive a copy of the annual accounts. In general
though, there would appear to be a relatively light touch.

In most instances, the structure, management and governance of the club remains
entirely unchanged by converting to Mutual status. Control remains with the
members. A few technical changes to the rules may be required. Mutual status does
confere limited liability on the members, and establishes the club as a legal entity in
its own right, capable of entering into contracts as a corporate body. In many
instances, this will be a cheaper and more flexible route than incorporation as a
Company Limited by Guarantee.

Registered Charity
The Charities and Trustees Investment (Scotland) Act 2005 and the similar Charities
Act 2006 (applying to England and Wales) have both introduced modernising reforms
to charity legislation. It is now possible for sports clubs to apply for registration as a
charity.

There are two main benefits. Charitable registration establishes your club as a
corporate body and legal entity (as distinct from the voluntary association of
members in an unincorporated body). Charities are also able to benefit from more
favourable tax treatment including Gift Aid on donations, discretionary relieft on rates,
and other tax benefits.
The meet the charitable registration requirements, your club must meet two criteria.
First it must provide one of several charitable purposes. These now include: "the
advancement of public participation in sport" where sport is defined as physical skill
and exertion and which have a health benefit; and "the provision of recreational
facilities, or the organisation of recreational facilities, with the object of improving the
condition of life for the person for whom the facilities or activities are primarily
intended". Secondly, the club must demonstrate that if provides a "public benefit".
Guidance on this aspect is still being developed: in essence you will need to show that
your activities or facilities are generally available to the public without being unduly
restrictive.

Charitable registration requires the club and its officers to comply at all times with
charity regulations, including the annual provision of a trustees report and accounts
(in a prescribed format), and be open for periodic inspection by the regulator. A
major part of the regulator's role is to ensure public confidence and trust in all
charitable activities.

De-registration as a charity is a difficult step, so registration should not be undertaken

likely. Whilst several sports clubs are now applying for registration, the benefits are
likely to be more attractive to the larger or wealthier clubs. An alternative and easier
route for smaller clubs is registration with the Community Amateur Sports Club
scheme, described below. CASC clubs are prohibited from applying for parallel
charitable status.

Further information on charitable registration and the new legislation in Scotland,

England and Wales is available on the regulators' websites (see side panel).

Community Amateur Sports Clubs

Community Amateur Sports Clubs (CASC's) can now apply to be registered with the
Inland Revenue to claim tax relief. This will offer them the support and recognition
they have long deserved. The new tax package is available to all CASC’s in the
country and ensures that community sport is given the best possible chance to
nurture and enhance local sports people. Any club which registers will enjoy each of
the following:

80% mandatory rates relief

Fundraising income up to £15,000 exempt from tax
Income from interest exempt from tax
No corporation tax on trading income under £30,000 per year
Profits from rental income exempt from tax up to £20,000 per year
Disposals assets exempt from capital gains tax
Gift aid on individual donations
Inheritance tax relief on gifts
Gifts of assets on no-gain, no-loss basis for capital gains
Business relief on gifts of trading stock

There is a dedicated CASC information website and the Inland Revenue has published
detailed guidance on CASCs (see See Also panel). In general, for a club to become
registered as a CASC, it demonstrate that it:

is open to the whole community without discrimination

is organised on an amateur basis; and
provides facilities for, and promotes participation in, an eligible sport

Applications for registration as a CASC should be sent to:

Sports Clubs Unit, Inland Revenue, Meldrum House, 15 Drumsheugh Gardens,

Edinburgh EH3 7UN
Business partnership
We've recently come across some sports organisations that are registered as Business
Partnerships. This enables the founders and members to establish and run the
organisation as a legal partnership, creating a defined legal entity with themselves as
the constituent partners. The organisation has limited liability partnership status
(similar to limited companies). Some partnerships then provide payment to their
officers. The partnership can register for VAT and operate as a business employing
other staff and devising appropriate policies for the sports activities.

Facilities
Establishing a base
Many clubs seek an ideal solution of owning and
running their own facilities - whether this be club
house, activity centre, sports ground or whatever.
Often this is the most expensive solution as you
will probably need to secure substantial funding in
order to develop your own facilities. You will also
need to seek planning consent and meet the on-
going costs associated with owning any premises.

If you are intent on this route, you would be well-

advised to study the runningsports: Laying the
Foundations booklet which explores all the
common issues in starting a building project for
any sports activity. sportscotland have also
published a comprehensive Guide to Project Development which will take you through
all the steps of planning, designing and build a new facility in detail. The Facility
Quality Management System provides a framework for managing your sport and
leisure facility once it is up-and-running. It covers operations, customer relations,
staffing and service development. All three publications can be downloaded from the
Resources side-panel.

Facility Leasing
Many local authorities will enter into agreements with sports clubs to lease
premises or facilities to reputable organisations on a range of terms. These may
include the long-term leasing of existing premises on an exclusive basis, to the
shorter-term letting of facilities for specific days or times on a regular basis.To
enquire further, you should make contact with your Local Sports Council or with
appropriate sports centres and facilities in your area.

Using public and private centres

If you require access to facilities for a relatively short period of time (e.g. a couple of
hours in a weekday evening, or one evening through a term), you should approach
your local sports centre or facility to enquire about bookings. Virtually all school-
owned, local authority-run and commercial sports centres are organised to accept
regular and one-off bookings from sports clubs. In busy centres, the pressure on
space may be such that you have to accept a booking time which is not your first
choice, or you may need to