CAI-NJ July 2019 Newest

“...the club must acknowledge that it is required to adhere to all the regulations imposed by the association.”

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CLUBS... from page 16.

services, there are less financial impli- cations and if possible, have them be part of the association. However, in doing so, the club must acknowl- edge that it is required to adhere to all the regulations imposed by the association. When dealing with larg- er independent clubs, they have to understand the implications. As noted in the sports club example above, it is not uncommon for larger independent clubs to collect dues or money from its members. In situations such as these, from the standpoint of a club, the following best practic- es are recommended: 1. Incorporate as a separate legal entity and draft a set of bylaws / governing documents 2. Maintain and review financial records on an ongoing basis 3. Obtain sufficient insurance coverage 4. Open separate bank accounts 5. Obtain separate tax identification number, and file any required tax forms on an annual basis 6. Appoint a board or group of offi- cers to oversee the operations of the club

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