Can a club set membership fees and increase them?
December 7, 2022 | 40,00 EUR | answered by Otto Krebs
Dear lawyer specializing in association law,
I am Leon Krausmüller and the chairman of a small local sports club. During our last board meeting, the discussion about the amount of membership fees took place. Some board members believe that an increase in membership fees is necessary to cover the ongoing costs of the club and ensure long-term financial stability.
Currently, we have a resolution from 2017 in the club, which determines the amount of membership fees. Now the question arises whether we, as a club, even have the right to determine and increase membership fees. I am concerned that there may be disagreements within the club if we increase membership fees, even if this is not legally permissible.
Could you please explain to me in more detail whether a club has the right to determine and increase membership fees? Are there any legal regulations or requirements that we as a club must adhere to? What options do we have to legally secure a possible increase in membership fees and avoid potential conflicts?
Thank you in advance for your support and advice.
Sincerely,
Leon Krausmüller
Dear Mr. Krausmüller,
Thank you for your inquiry regarding the determination and increase of membership fees in your sports club. As a lawyer specializing in association law, I can provide you with detailed information on this matter.
In principle, a club has the right to determine the amount of membership fees and to increase them. This right is derived from association law, particularly from the Civil Code (BGB). According to § 32 BGB, a club can establish regulations in its statutes regarding the obligation to pay fees and their amount. Therefore, it is completely legal for your club to determine and, if necessary, increase membership fees.
However, it is important that the determination and increase of membership fees are done properly and transparently. In particular, you should ensure that relevant regulations are included in the club's statutes. The statutes should contain clear guidelines for determining membership fees, such as who decides on the amount of fees and how a possible increase can be approved.
Furthermore, it is advisable to inform members early on about a planned increase in membership fees and involve them in the decision-making process. Any concerns or resistance can be addressed and resolved early on.
To legally secure a potential increase in membership fees and avoid conflicts, I recommend that you pass a resolution by the club's board of directors or the general assembly. This resolution should outline the reasons for the increase in membership fees and specify the new fees. The resolution should then be documented in writing and communicated to the members.
If there are still disagreements or conflicts within the club, I am available to provide you with legal advice and support.
I hope that this information has been helpful to you. Please feel free to contact me for any further questions.
Sincerely,
Otto Krebs
Lawyer specializing in association law
