There are a variety of options and different ways to legally structure a golf club. This content provides more in depth reading on the most frequently used models for both ‘equity clubs’ (those owned by members) and non-equity clubs (those owned by an individual, a family or a corporate entity).

This will allow for an assessment of suitability for currently adopted models, or if changes may be required.

The most popular legal structure for member-owned and proprietary golf clubs is to become incorporated, either as a company limited by shares or by guarantee.

An incorporated club can decide if it wishes to pay dividends to shareholders or not, in which case the profits generated by trading will be re-invested into the business.

Incorporation provides a legal framework that establishes clear roles, liability protection and sometimes tax benefits – all of which can help a club operate more effectively and efficiently towards achieving its goals.

Whatever legal structure a golf club chooses, understanding the value and relevance of governing documents such as Articles, Constitutions, or other associated documents, is a fundamental aspect of good governance.

It is important to help establish clear rules and guidelines for the operation of the club, as well as for the conduct of its members and guests. They could also provide a framework for decision-making helping to ensure that the club is run in a fair and consistent manner. By establishing and documenting these in writing, clubs can help protect themselves from potential legal issues or liability claims.

For volunteers that are serving on a Board of Directors or Management Committee, and for club managers or secretaries employed to run the club, understanding what the club’s Articles or Constitution contains and permits is mandatory.

This can be seen as an important recognition for clubs that are committed to promoting public benefit and operating in a way that is consistent with charitable principles. It can also provide financial benefits and support for the ongoing operations of the club.

A club seeking charitable status will most likely need to demonstrate that it operates in a certain way which can include things like providing access to the course and facilities who might not otherwise have the opportunity to participate in the sport.

Whilst these options bring with them some advantages and potential savings, they are often restricting in what the club is allowed to do and sometimes involve placing limits on how much they can charge for certain services.