PA language Valuation Date Member Payments
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PA language Valuation Date Member Payments Our club partnership agreement does not include language for a valuation date for member payments. (I have read numerous previous messages and discussion about it on Club Cafe.) We will be discussing this and deciding what we want to use for the valuation date at our next meeting. I am looking for sample language any clubs are using regarding this in either their partnership agreement or operating procedures. I found Bivio's sample partnership agreement and sample operating procedures here on Club Cafe, but neither include any language for this. I don't need any info regarding pros and cons of what date to use, just looking for specific language in a partnership agreement or operating procedures. Carla Hanson MDI Investment Club, Janesville WI Our Partnership Agreement stipulates we will have a regular valuation date: The current value of the assets and property of the partnership, less the current value of the debts and liabilities of the partnership (hereinafter referred to as "value of the partnership") shall be regularly determined. The date of valuation shall hereinafter be referred to as "valuation date."
In the Withdrawal section we also have a hardship clause:
From: club_cafe@bivio.com <club_cafe@bivio.com>
On Behalf Of Carla Hanson via bivio.com
CAUTION: External Email Our club partnership agreement does not include language for a valuation date for member payments. (I have read numerous previous messages and discussion about it on Club Cafe.)
We will be discussing this and deciding what we want to use for the valuation date at our next meeting. I am looking for sample language any clubs are using regarding this in either their partnership agreement or operating procedures. I found Bivio's sample partnership agreement and sample operating procedures here on Club Cafe, but neither include any language for this.
I don't need any info regarding pros and cons of what date to use, just looking for specific language in a partnership agreement or operating procedures.
Carla Hanson MDI Investment Club, Janesville WI
Per your request, here's the wording from our Partnership Agreement. 7. Value of the Partnership. The current value of the assets of the partnership, less the current value of the liabilities of the partnership, (hereinafter referred to as the "value of the partnership") shall be determined seven (7) days ("valuation date") preceding the date of each periodic meeting determined by the Club. Dick Lewis GMIC From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Carla Hanson via bivio.com Our club partnership agreement does not include language for a valuation date for member payments. (I have read numerous previous messages and discussion about it on Club Cafe.) We will be discussing this and deciding what we want to use for the valuation date at our next meeting. I am looking for sample language any clubs are using regarding this in either their partnership agreement or operating procedures. I found Bivio's sample partnership agreement and sample operating procedures here on Club Cafe, but neither include any language for this. I don't need any info regarding pros and cons of what date to use, just looking for specific language in a partnership agreement or operating procedures. Carla Hanson MDI Investment Club, Janesville WI Our partnership agreement/bylaws state: A. Member Valuation Date: The "Member Valuation Date" is the date on which Member payments are deposited and converted into "Club Units." The number of Club Units determines the valuation of a Member's investment share. The value of Club Units will be calculated monthly by the Treasurer and fluctuates with the value of the Club's investments. Should a Member die, withdraw or be removed from the Club in accordance with Article III, Section D-F, above, his or her Club Units and investment share will be recalculated as of the last business day of the month for which the Member's dues were paid.Leo Gonnering Pure Strategies Investment Club West Bend, WI
On Monday, May 12, 2025 at 09:59:12 AM GMT-6, Carla Hanson via bivio.com <user*39787500001@bivio.com> wrote:
Our club partnership agreement does not include language for a valuation date for member payments. (I have read numerous previous messages and discussion about it on Club Cafe.) We will be discussing this and deciding what we want to use for the valuation date at our next meeting. I am looking for sample language any clubs are using regarding this in either their partnership agreement or operating procedures. I found Bivio's sample partnership agreement and sample operating procedures here on Club Cafe, but neither include any language for this. I don't need any info regarding pros and cons of what date to use, just looking for specific language in a partnership agreement or operating procedures. Carla Hanson MDI Investment Club, Janesville WI Our club uses the last day of the month as the valuation date. This makes checking this date for the annual audit much simpler than the use of deposit dates for valuations dates, meaning members have different dates showing. It also ensures that every member's $50.00 payment buys the same amount of units as everyone else's and eliminates gaming the system to withhold payments during market downturns to get the most units for each payment. Peg Wentworth, Women's Investment Network, Lititz, PA
VIII. VALUATIONS: The current value of the assets and property of membership less the current value of debts and liabilities of the membership (hereinafter referred to as "value of the membership"), shall be determined as of the statement date of the club's monthly statement. The aforementioned date of valuation shall hereinafter be referred to as "valuation date." _______________________ The practical part, which is not a part of our ByLaws, but is part of the Treasurer's responsibilities re: the club's monthly statement & valuation date are handled this way: Our Monthly Report Transaction Date is the Friday prior to our scheduled meeting date for the month. All member contributions must be received by this date (we meet the 3rd Wed of each month). The monthly report is run AFTER the market closes on that Friday. Initially, member payments arrive at broker on a variety of different dates, thus they appear on bivio's Transaction list on different dates. On the Friday prior to our meeting, the Treasurer enters all Member Payments into bivio, so that all members have an identical Valuation Date each month. Next, all original individual member payments are deleted from the Transaction list. Hope this helps, Lynda Feit TERIC On Mon, May 12, 2025 at 10:02 AM Margaret Wentworth via bivio.com <user*25964300001@bivio.com> wrote:
Our club LLC states the following under the section Method of Accounting. "Members will receive units of ownership when they make contributions of capital to the club. The number of units they receive will be based on the Net Asset Value (NAV) of the Club on the day the deposit is made into the club brokerage account. Income and expenses will be allocated to each member the date they occur, based on the number of units of ownership each member has on that date"." Under the section Value of the Club "The Net Asset Value (NAV) of the Club will be determined as necessary to conduct club business. NAV for any specific date will be considered accurate when all club transactions have been correctly entered and stock prices have been updated. The number of units of ownership received for a member payment will be determined by the club's NAV as of the deposit date of the contribution in the club brokerage account (Payment Valuation Date). Member withdrawals will be valued based on the club NAV two business days prior to the club meeting following the meeting at which a withdrawal request is received and accepted. (Withdrawal Valuation Date)" Bivio makes all of this easy because with the sync with Schwab everything is auto entered and I just have to double check that the valuation date for an expense or contribution is the same as the date of deposit or expense in Schwab, (which the sync tells me and which I double check each month for preparing the Treasurer's report for the Club meeting). There is just one fly in the ointment, which is that stock prices update overnight in Bivio, so Club valuation is off by one day compared to actual. So for any valuation date that matters, like a valuation date on a Thursday for a withdrawal, I wait to Friday and then run the report with the report date set to Thursday. Sorry for the long explanation, it was helpful to write it out and see if anyone sees a problem. Thanks, Gary Henricksen, Treasurer Keene Horizons Investment Club P.S. Did I say I love Bivio!
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