Sports club finances: How to take full control

The year after, same problem. The treasurer is stuck with an Excel list that doesn’t add up. Expenses are spread across three accounts. The auditor asks: “Who approved this payment?” Nobody knows.

We have seen this pattern so many times that we know what helps: One system that the board actually uses.

Here is a guide to taking control of the club’s money.

The five sources of income in a sports club

Before you budget, you need to understand where the money comes from.

1. Membership fees (member payments)

Membership fees are a stable source of income. Members pay annually or every six months.

How much should the membership fee be?

• Look at competitors in the same area
• Ask your auditor or federation for an average
• Remember: You can change it at the annual general meeting

Tip: Set the membership fee a little higher than you think you need. It is easier to refund than to ask for more money in June.

2. Grants (municipality, county, federation)

Norwegian sports clubs receive grants from their municipality and county. Some federations also give grants.

Where is the money?

• The municipality’s sports and culture adviser
• The municipal sports council (distributes local activity funds, LAM)
• The federation’s administration
• Foundations and lotteries (e.g. Norsk Tipping)

When do you apply?

• Often in January–February or September–October
• Deadline: Check the municipality’s and county’s websites

How much? Varies from NOK 5,000 to NOK 100,000+ per year, depending on the size of the club and the municipality.

The treasurer should keep a list of all grant opportunities and application deadlines. Don’t rely on remembering them.

3. Tickets and entry fees

If the club organises a tournament, course or relay race, income comes from participation.

Examples:

• Entry fees from participants: NOK 500 × 100 = NOK 50,000
• Tickets for the annual party: NOK 300 × 200 = NOK 60,000
• Training fee: NOK 200 × 50 = NOK 10,000

This income is variable — it depends on how many people turn up. Don’t budget for it as guaranteed income.

4. Sponsors

Sponsorship is when local businesses pay to be associated with the club.

Classic sponsorship package:

• Small sponsor: NOK 5,000–10,000
• Medium sponsor: NOK 10,000–25,000
• Large sponsor: NOK 25,000–50,000+

In return, the club offers: a logo on the website, a mention in the newsletter, promotion on Facebook or a display in the clubhouse.

Tips for the treasurer:

• Create a sponsorship prospectus that outlines what sponsors get
• Contact the same sponsors every year (recurring agreements)
• Thank them actively (a letter, an invitation to the annual party, a report on what the money was used for)

Sponsors who are treated with gratitude renew. Sponsors who hear nothing for five months disappear.

5. Volunteer work (dugnad) and events

Income-generating volunteer work (fundraising sales, barbecue evenings) or events (cake sales) bring in money.

These are often small sums (NOK 2,000–10,000), but together they make a difference.

Note: Be clear about costs. A barbecue evening that generates NOK 5,000 gross may cost NOK 3,000 in food, so the net income is NOK 2,000.

Budget: How to plan expenses

Before the year starts, draw up a budget.

Typical expense categories in a sports club, with example annual costs:

• Wages/fees: NOK 50,000–150,000 (coach, organiser)
• Premises and operations: NOK 30,000–100,000 (clubhouse, electricity, water)
• Equipment and materials: NOK 20,000–80,000 (balls and training equipment)
• Events and activities: NOK 40,000–200,000 (tournaments, camps, relay races)
• Administration: NOK 10,000–30,000 (bank, insurance)
• Marketing: NOK 5,000–20,000 (posters, Facebook ads)
• Social activities: NOK 10,000–40,000 (annual party, volunteer evening, Christmas party)
• Accounting and auditing: NOK 5,000–15,000 (auditor, receipt processing)

Where do you start?

1. Look at last year: What did you actually spend?
2. Adjust: What should be more or less this year?
3. Add: New projects or activities?
4. Budget conservatively: Assume some expenses will be higher than planned.

Rule: The budget should be realistic, not wishful thinking. It is better to meet the budget than to hope for miracles.

Once the budget is done, compare it with the income forecast. If expenses exceed income, you need to:

• Increase income (higher membership fees, more sponsors)
• Cut expenses
• Use savings

Expense control: Who approves what

To prevent the treasurer from spending money arbitrarily, there must be clear rules.

Example procedure:

• Under NOK 500: The treasurer can approve alone. The receipt is kept.
• NOK 500–5,000: The treasurer and the chair approve. By e-mail or in the meeting minutes.
• Over NOK 5,000: The board approves at a meeting.

This takes a little time, but it ensures that the money is spent sensibly and that everyone knows where it goes.

Receipt procedure:

• All payments must have supporting documentation (invoice, receipt or bank confirmation)
• Supporting documents are kept for 5 years after the end of the financial year
• Every month: The treasurer summarises and presents the documents to the board

This procedure may be “boring”, but it prevents misunderstandings and accounting errors that take hours to correct.

VAT compensation: Money back from the state

If the sports club pays VAT, it can receive compensation from the state.

Who gets VAT compensation?

• The sports club must be registered in Frivillighetsregisteret (the Register of Non-Profit Organisations)
• The accounts must be approved by the annual general meeting

How much can you get?

For sports clubs in Norges idrettsforbund (the Norwegian Confederation of Sports), the compensation is not calculated on the basis of each individual purchase. The basis is the operating costs in the accounts approved by the annual general meeting, with certain deductions. The compensation is 8% of the first NOK 7 million and 6% of anything above that. If the state’s appropriation is not enough for full compensation, all approved applications are reduced by the same percentage.

How do you apply?

The scheme is administered by Lotteri- og stiftelsestilsynet (the Norwegian Gaming and Foundation Authority). Sports clubs that are members of Norges idrettsforbund nevertheless apply through the confederation and not directly to the authority. The general manager, a board member or the person responsible for grants submits the application. The confederation has its own deadline, and it is earlier than the deadline at Lotteri- og stiftelsestilsynet.

It is worth asking your auditor or federation about VAT compensation.

Cash vs. bank: Which should you use

Cash:

• Pros: No fees, easy for small transactions
• Cons: Risk of theft, hard to control

Bank:

• Pros: Secure, easy to audit, two-person approval possible, automatic statements
• Cons: Bank charges

Tip: Use the bank for all larger payments (over NOK 1,000). Only use cash for small purchases such as coffee, decorations or similar.

If your members are to pay membership fees or register for events, you must use the bank and digital payment. Cash-only payments from individuals are bad practice.

Accounting: From handwritten to automated

Old-school clubs: “We use Excel.”

The problem: Excel is error-prone and hard to audit.

Rubic Regnskap is an accounting service for sports clubs and associations. A dedicated accountant keeps the accounts directly in Rubic or helps you with parts of the job:

• Membership fees, expenses, invoices and payments go straight into the accounts
• Supporting documents are linked to every item of income and expenditure
• VAT compensation is handled for you
• The annual accounts are ready before the annual general meeting

Price: A fixed price based on the size of the organisation, set out in a quote.

See how Rubic Regnskap gives the treasurer full control — a dedicated accountant and a chart of accounts tailored to sports clubs and associations.

Checklist for financial control

• All sources of income mapped and budgeted
• Expense categories defined
• Approval rules for different amounts established
• Receipt procedure documented
• Bank account opened, account details shared with the treasurer
• Auditor chosen and contact details recorded
• VAT compensation checked (are you eligible?)
• Accounting system chosen (Excel, Rubic or another)
• Annual general meeting planned (date for the financial review)

Time required: 8 hours to set up proper finances the first time. After that, 2–3 hours per month for the treasurer.