Club advice: Finance
Through consultation with member clubs, basketballscotland understands that clubs face varying degrees of financial issues and uncertainty due to COVID-19. This page aims to support club leaders operating the finances at clubs throughout Scotland.
In the following text, we have advised on some pricing models, income and fundraising methods that your club may wish to adopt.
Should your club want any support during this time to explore other income methods, applying for funding or anything else which will help your club, please do not hesitate to contact Adam at: firstname.lastname@example.org
During this pandemic, individuals and families will be faced with heightened financial worries. It is understandable that they may struggle to make their standard contribution to the club. As a result, clubs may need innovative solutions to seek income through their membership. Below, we have detailed several ways in which income can still be received through club members.
Before we do this, it is worthwhile taking the time to understand which method suits your club. Not every method would work due to several factors. Some things to consider are: does your club act like a social enterprise with a social mission, does your club firmly need all its membership income, and what are the financial circumstances of your club’s membership.
Reduced membership or ‘Scholarships’
- West Edinburgh Warriors Basketball club have asked for their members to continue paying. During this time, the club have significant overheads but are also looking to make a social impact during this pandemic.
- Boroughmuir Blaze Basketball Club offer scholarships for those who cannot afford to pay the full monthly direct debit. The club have expanded this scheme and offered it to all their members should they want this.
- Communication and wording are very important when detailing this approach to members. We can support by proof reading communication out to members.
- Fife Steel Basketball Club have reduced their membership fees to £10 per month as have many others to ensure remaining overheads are covered.
The ‘Robin Hood Model’
- Stealing from the rich and giving to the poor is what Robin Hood is remembered for. It is a play on words when referring to club members. During this pandemic, it is an opportunity to give to a local charity or even the NHS. Club members, especially those more affluent, may be keen on paying their full membership price, knowing that a small percentage of their monthly fee will be going to a great cause.
- GoFundMe is an American for-profit crowdfunding platform that allows people to raise money for events ranging from life events such as celebrations and graduations to challenging circumstances like accidents and illnesses. Some clubs are organising celebration events when isolation restrictions are removed. If this is in the summer, perhaps your club could be proactive and offer an outside basketball event for families and friends. No hall hire will mean little expense, and an event with good music, some home baking and refreshments is undoubtedly going to be popular. Here is a tip, create a Facebook event page with no promise of a date, the club can then be reactive to those who are interested and give short notice for the event.
- Pay Forward is a scheme being utilised heavily in the hospitality industry to keep restaurants alive. Many are offering vouchers for a meal. For example, a £100 meal voucher for a £125 meal later in the year. Clubs could use this as a membership option to get cash in the bank ahead of next season. For example, pay for 6 months membership for when the season starts, and get the 7th month half price.
Long Term Membership Loans
- Like Pay Forward, Long Term Membership Loans get money in the club bank account. This effectively asks members to pay for membership years or months in advance. For example, paying for 3 years membership in advance. An incentive for a member to do this, could be offering a piece of club merchandise.
- easyfundraising turns your everyday online shopping into free donations for your favourite cause. Your club can be a cause. People who shop online, shop as normal. Subscribed retailers will then make a small donation to say, “thank you”. Check out West Edinburgh Warriors Basketball Clubs page: https://www.easyfundraising.org.uk/causes/wewbc/?test=t1
The Third Sector Resilience Fund
The Third Sector Resilience Fund is designed for charities, voluntary organisations, social enterprises and other third sector organisations that already deliver services and products but that find themselves in financial difficulties directly as a result of the Coronavirus pandemic, as opposed to pre-existing financial difficulties. The funding’s primary intention is to help these organisations to stabilise and manage cashflows over this difficult period.
Small Business Support Grant
Scottish Government are making available one-off grants of £10,000 to businesses that are claiming Small Business Bonus Scheme or Rural Rates Relief. The scheme is open for applications, which are being administered by local authorities.
Retail, Hospitality and Leisure Businesses Grant
Scottish Government are making available one-off grants of £25,000 to leisure businesses that own facilities with a rateable value of £18,000 to £51,000. If you do not know the rateable value of your organisation’s facility check with the person in your club who pays your non-domestic rates bill. The scheme is open for applications, which are being administered by local authorities.
Support through SCVO (Scottish Council for Voluntary Organisations). To date, funds have supported the purchase and delivery of food, activities to support people’s mental health and wellbeing, co-ordination of local activity and staff and volunteer expenses. It is anticipated that the fund will continue to support those things and much more.
Response, Recovery & Resilience (RRR) Fund
Most immediately, Response is about providing emergency funding for local charities and grassroots organisations who are currently supporting some of Scotland’s most affected and vulnerable people.
In the medium and longer term, Recovery and Resilience will be about funding a wider group of local charities and community organisations whose operations and finances have been affected so they can recover,
Coronavirus Job Retention Scheme
UK Government have committed to reimbursing 80% of wages of employees (on PAYE) of businesses and charities whose operations have been severely affected by Coronavirus (COVID-19). To be eligible, employees need to have been formally asked in writing to stop working and placed on a leave of absence (‘furloughed’). The scheme can cover staff on full-time, part-time and zero-hours contracts. The scheme is not yet open for applications but if your organisation is considering this option, we encourage you to read the full detail as soon as possible to understand the steps you need to take.
Self-Employment Income Support Scheme
UK Government have put in place a scheme to support self-employed people who have lost income due to Coronavirus (COVID-19). If your organisation contracts sports coaches or others who are self-employed you should advise them to read the guidance as they will have to apply themselves.
This page will be updated when further information or advice becomes available.