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May 2001 |
 Vice Commodore’s Column
By Dan Carrico The Internal Revenue Service has guidelines for private clubs with regard to the amount of non-member income that can be taken in before jeopardizing their tax-exempt status. This amount, expressed as a percentage, is 15% of total member income. Corinthian has consistently bumped up against that threshold for several years, with some undesired close-to-home effects. Cash, from any source, is considered non-member income. To manage the situation your Board of Directors has, on more than one occasion and in more than one year, voted to not accept cash from Members in order to minimize non-member income. Our staff has been instructed to not accept cash from Members and while doing so to communicate these realities. The Board asks for your co-operation in not attempting to pay cash, but instead charging your account. Please help your Club in this small way.
Another negative impact on Corinthian of above threshold limit, non-member income, aside from IRS repercussions to the Club sufficient in themselves, is on CYC employees’ incomes. In the latter half of every year when many Club, corporate and private holiday parties are held the ballroom, we must turn over our bar function to outside vendors for these events to stay under guideline. Our loyal and deserving CYC bar staff is therefore denied the opportunity to earn wages and tips from these functions. The good news is we can increase total member income by entertaining more at the Club, having fun and at the same time raising our allowable non-member income. Members may have the impression that one has to hold big, expensive parties to use Club facilities. You don’t. In fact, we encourage you to plan your next party at the club, business or personal. In some cases, the library or Member’s dining room (under certain circumstances) would be more appropriate for small groups, but don’t rule out using the upstairs bar, sun porch or ballroom. Use of the upstairs facilities is subject to prior booking by outside parties through Corinthian Catering Inc. (CCI), however many dates are available, especially on weekdays or evenings. The House Committee also maintains a hold on dates every month for Member use (subject to a six month forward limit within which CCI may book). If you don’t have an occasion, but feel like organizing a Member’s party whether it be a square dance or a séance, why not get some friends together and plan it? Contact the Club office to investigate or to check out dates. The Club is here for your enjoyment. Have fun this year. On another matter, on several occasions young children have been observed unaccompanied by an adult while romping about the Clubhouse and creating inappropriate noise. House Rule #5 specifically prohibits this. Parents will be asked to provide supervision or leave. More directly to a safety issue, young children have been observed on the docks without personal flotation devices. This is prohibited by House Rule #5 and Harbor Rule #3.06. These are both important safety observances, as we begin the boating season, as parents let’s make it safe. Accompany your young children and remember why these rules were enacted. The House Committee recently raised Facility Rental Fees for outside parties an average of 20%. This was done after a comprehensive survey of area rents was made in cooperation with Corinthian Catering Inc. As an example, the increase for a Saturday evening would be $500. Additional Club revenue should reach $30,000 for 2002 with some increase this year. New Member’s dining survey cards are coming! The House Committee has developed a new more definitive, while at the same time easy to use, format. Our intent is to provide greater focus to specific aspects of Member dining service and food quality with greater responsiveness. Look for the comment cards and let us know both when things are great and when they are not so. |