Hello
We run a small family-owned golf course in a remote but scenic part Scotland, that is run as a partnership.
We think the golf course is unlikely to ever make much profit, but we keep it going for the benefit of the local community, for tourism and partly for the joy of playing there occasionally ourselves.
The course turns over about £60K but it has significant expenses including a full time greenkeeper and expensive machinery that keeps breaking down/needing replacement.
If we put sheep on the course for the winter months we will get a few grand of subsidy, but is still likely to be loss-making at the current level of spend maintaining the 'quality' of the course.
Some relatively wealthy family members (Group A) believe that the course COULD be made profitable whilst if anything increasing the quality of the golf course. Even if not profitable they are entirely happy to subsidise the course with donations in some form.
Other relative poor family members (Group B) think that the course could only ever break even at a much lower level of quality (think: part-time green keeper, less mowing, more use of sheep)
So we need to find a mechanism for Group A to donate as much money as they want, but for Group B to simultaneously neither loseownership(if the money was injected as "capital") and not to get into any form ofdebt(if the money was inject as "a loan" to Group A).
I understand that it is not possible to simply "give" money to either a company or partnership(!).
So should we now:
a) Set the thing up as "a charity"? (which can accept donations)
b) Set the whole enterprise up as "a social enterprise" not a partnership? (which can accept donations??)
c) Should Group A buy and keep ownership of any new expensive golf course equipment themselves and then simply "lend" it for free to the course indefinitely?
d) Should Group A do some (clearly non-commercial) form of "corporate sponsorship"?
e) Should Group B be paid (over the top) for their time spent helping/"consulting" for the golf course, and then plough this money straigh back into the golf course as capital?
All suggestions welcome!
J
We run a small family-owned golf course in a remote but scenic part Scotland, that is run as a partnership.
We think the golf course is unlikely to ever make much profit, but we keep it going for the benefit of the local community, for tourism and partly for the joy of playing there occasionally ourselves.
The course turns over about £60K but it has significant expenses including a full time greenkeeper and expensive machinery that keeps breaking down/needing replacement.
If we put sheep on the course for the winter months we will get a few grand of subsidy, but is still likely to be loss-making at the current level of spend maintaining the 'quality' of the course.
Some relatively wealthy family members (Group A) believe that the course COULD be made profitable whilst if anything increasing the quality of the golf course. Even if not profitable they are entirely happy to subsidise the course with donations in some form.
Other relative poor family members (Group B) think that the course could only ever break even at a much lower level of quality (think: part-time green keeper, less mowing, more use of sheep)
So we need to find a mechanism for Group A to donate as much money as they want, but for Group B to simultaneously neither loseownership(if the money was injected as "capital") and not to get into any form ofdebt(if the money was inject as "a loan" to Group A).
I understand that it is not possible to simply "give" money to either a company or partnership(!).
So should we now:
a) Set the thing up as "a charity"? (which can accept donations)
b) Set the whole enterprise up as "a social enterprise" not a partnership? (which can accept donations??)
c) Should Group A buy and keep ownership of any new expensive golf course equipment themselves and then simply "lend" it for free to the course indefinitely?
d) Should Group A do some (clearly non-commercial) form of "corporate sponsorship"?
e) Should Group B be paid (over the top) for their time spent helping/"consulting" for the golf course, and then plough this money straigh back into the golf course as capital?
All suggestions welcome!
J
