Membership Reporting
Financial Statement Summary
The Board has released our 2025 Financial Statements to provide members with a transparent view of The Swimming Hole’s financial position and operating performance.
Financial FAQ
What type of organization is the club? The club is a 501(c)(7) nonprofit social club, which exists to provide recreational and social opportunities for its members. It is not operated to generate profit for owners.
Can members donate money to the club? Members may contribute funds voluntarily to support improvements or projects. However, donations to a 501(c)(7) social club are generally not tax-deductible.
Is the club financially healthy? Yes. The club ended 2025 with approximately $351,000 in cash and about $2.47 million in total assets, including land and buildings. The timing of significant cash investments to complete the capital improvement project will reduce cash. The Board monitors assets and reserves closely.
Is the club losing money? The 2025 financial statement shows an accounting loss of about $45,855. This is largely due to non-cash expenses such as depreciation and interest related to facility investments. The Board closely monitors assets and reserves.
Does the club have debt? Yes. The club has approximately $836,000 in long-term debt, which is associated with capital improvements and facility investments. Our debt to operating income is high due to the Board’s decision to keep the one-time capital assessment members paid in 2024 relatively low for the cost of our capital improvement project.
Where does the club’s revenue come from? Most revenue comes from membership dues. The Board plans to generate increasing revenues through offering increased member amenities and activities, as well as better utilization of the club’s assets through programming.
How are member dues used? Dues help cover operating costs such as pool management, maintenance and repairs, insurance, utilities and administration.
What are initiation fees or capital assessments? These are member contributions used to fund long-term improvements such as facility upgrades, major repairs, or expansion of club amenities.
What are stock fees and are they refundable to membership? Following the March 2024 update to membership, Stock Fees are classified as Member Equity rather than a liability, whereas prior to the Reimagine Project they were treated as a liability and held as restricted cash. For those members who resigned after the deadline provided, Stock Fees will be returned as the financial position of the club allows. Although Stock Fees were previously non-refundable until a member resigned, the Board has expressed an intent to return these deposits to existing members if the financial position of the club allows and subject to formal Board approval.
Who oversees the club’s finances? The Board of Directors oversees the club’s budget, financial reporting, and major financial decisions.
Can members review financial information? Yes. The club provides unaudited financial statements annually as part of the annual letter, and maintains the clubs books and records. The board reports to members to maintain transparency and responsible stewardship.
Capital Improvement FAQ
Why did the Board feel compelled to propose the Reimagine Project for member vote in 2023? Several years before the vote on our capital project, the Board began to consider its fiduciary responsibility to membership regarding excess cash on the balance sheet. The obvious needs for capital improvements compared to other ways of returning value to membership led to a vote in late 2023 per our Bylaws. The 2025 Annual Letter to Membership shares more of the Board’s thoughts.
How much did the project cost? As stated in our 2026 Annual Letter, there is more work to be done, but our originally planned costs of approximately $1.1M have increased by about $100k to $1.2M due to unsuitable soils and contractor delays. We remain confident we can complete the work within this range of total net costs.
How much are ongoing membership costs increasing? Annual dues increased by $75/yr from recent years. Annual dues have increased only ~$100 over the last ten(10) seasons. Initiation fees have significantly increased due to the investment made in our facilities and property, as well as the Board’s belief in future capital planning to avoid future assessments. Total costs to become and remain a member are well within local market comparitive ranges.
Will future members participate in the cost? Yes. In keeping with how a typical membership-based organization funds capital improvements, new members joining for the 2025 season & beyond contribute to a Capital Contribution Fund where a Family Membership pays $150 each year for their initial five(5) years of membership.
Will we take on debt to help pay for the project & for how long? Yes. Our plan originally included a $750k loan, now finalized at $850k and amortizing over twenty(20) years. Our debt to operating income is high due to the Board’s decision to keep the one-time capital assessment members paid in 2024 relatively low for the cost of our capital improvement project.