The term ‘not-for-profit’ (NFP) does not mean that you are not allowed to make a profit.
NFP simply means that a club cannot distribute surplus assets (or profit) amongst members, or anyone else. Instead, any profits must be used to deliver your club’s objects, as outlined in your constitution. This could include banking money as a buffer for any future disruption of activities (like a season being cancelled due to bushfire impact) or as savings to be used for large purchases.
It helps to think of your club as a business, to which good business practices should be applied.
Remember, ‘not-for-profit’ does not mean ‘for-loss’ – if your club breaks even or loses money each year you won’t be able to do much to support your members and pursue your purpose.
The aim is to ensure your club’s long-term sustainability, so you can continue to provide the best service to your members well into the future.
What is the difference between responsibility and accountability? Put simply, you can delegate responsibility, but you can’t delegate accountability. The management committee usually delegates responsibility to the treasurer for day-to-day bookkeeping and so on, but they can’t delegate their accountability, which means that the management committee remains jointly answerable to members for the financial position of the club.
As a management committee member, it is your responsibility to have a clear picture of the financial position of the club, to understand the financial reports, to ask good questions and to oversee financial safeguards and best practices that protect your club’s financial health.
Financial terminology
A good understanding of financial terminology will help ensure that the entire management committee, not just the treasurer, is familiar with basic financial terms so that you’re all on the same page when you talk about money.
This is a quick guide to basic: Financial terminology.
Protecting club funds
There are a number of safeguards you can use to protect your club’s money against accidental loss, theft or fraud.
See more details in the section: Protecting club funds
Other useful links:
UQ Sport reinvests all profits into services, facilities, and programs, and is supported by funding from the Student Services and Amenities Fee (SSAF) to benefit UQ students.
UQ Sport Ltd is a division of UQ Holdings.
