[gold40]

Am seeking experience & information on what happens when a trap club fails financially.

Did someone else take it over and succeed?

Did they take Ch. 11 Bankruptcy, and reorganize?

Was it closed forever?

Did they turn the land into a shopping center or subdivision?

Any historical perspectives appreciated. One of our local clubs is not in good financial health. Another one closed 15 years ago, due to a flood, and recently reopened after a major refurbishing.

THANKS.

 

[tbuster]

How many members are there? How much are you charging for a membership? Do you shoot registered targets? Do you have league shooting? What is the population in the surrounding area? How many of the members want it to succeed? Is it ready to close or is there still life in the club? How many board members are there? Are you having any type of a fundraiser each year or isn't the interest or population such that this is even a possibility? Are you paying someone to run the club? I guess you have thrown out a question that has more questions than answers.

 

[halfmile]

The question was what happens?

The answer is: It depends on the bylaws. Our club has very specific language regarding disposition of assets in the event of disbanding(for any reason).

No club member will benefit in any way, all is to go to certain charitable wildlife interests.

Incidentally, The Green Bay Packers has similar provisions. If the Team is ever disbanded the proceeds go to Sullivan-Wallen Post # 11 of the American Legion.

So your bylaws should dictate what happens.

If the question really was about what to do in financial difficulty, that's another matter.

HM

 

[phirel]

HM is correct, but it can get a little complicated if the club is operating on land that is now owned by the club. The club determines how is assets would be disbursed after all debts are paid. Anything that the club built that is permanently attached to the land, becomes the property of the land owner. Targets in a target house belong to the club, but the target house belongs to the land owner. If the club put in a light pole for night shooting, the pole clearly belongs to the land owner, the lights on the pole can result in a debatable issue.

Membership in a club, may or may not include property rights. That gets back to the by-laws mentioned by HM.

Pat Ireland

PS- HM- I have seen the Green Bay Packers fold on several occasions. They have, at times, become disbanded on the field but not as a corporation.

 

[Carol Lister]

Pat,

Did you mean:

..."is operating on land that is now owned by the club".

or

..."is operating on land that is not owned by the club".

Carol Lister

 

[320090T]

How does a 501 C4 or 7 play into this?

 

[twopipe]

the laws of incorporation might govern the legal distribution of assets, if the club is registered non profit.

 

[Joe Potosky]

New York has provisions in the law in regards to distribution of assets in regard to non profit or not for profit clubs.

RE: Did someone else take it over and succeed?

I know of a semi-private club that was failing. It was purchased by one person and now run as a business. It seems to be doing well and each year improvements are made.

The key words are "run as a business"....