Part of being in an investment club is making regular contributions so that the club has money to invest. It's important that people understand that the club needs to be able to count on this or it will not be able to operate effectively. Monthly contributions to an investment club are as important as bringing a bowling ball would be if you belonged to a bowling league.
Your club should decide on what amount each member should regularly contribute and when. In this sample, we allow for a range of contribution amounts. There is no reason each member has to contribute the same amount each month or the same amount as other members do. However, it is important that contributions be received when expected so that the club will know how much it has to invest at each meeting.
Clubs whose focus is investment education only need small contributions from each member to be able to make investments and learn from the process. Other clubs may want to work as a group to manage large sums of money. It's up to you.
In this sample, the club is requiring that member contributions be made by the members directly to the club brokerage account on a certain day. Members can set this up using online banking at their bank. This keeps the responsibility to make required contributions something that belongs to each partner. It should not be up to the club treasurer to have to try and track down delinquent payments from members.
Disclaimer: statements are opinions expressed by bivio Customer Support and are not official statements from any government agency. These statements are not intended to replace professional legal or accounting advice. When in doubt, follow the advice of your lawyer or accountant who is familiar with your particular circumstances and the laws of your state.