Sample Club Memberships Guidelines

Sample_Documents

DISCLAIMER: This is a sample template provided for informational purposes only. It does not constitute legal, tax, or financial advice. Organizations should consult their own legal and tax advisors and tailor this document to reflect their specific business needs, geographies, and applicable laws.

Document Header

Field	Value
Document Type	Club Memberships Guidelines
Category	Perquisites & Programs
Title	Club Memberships Guidelines for <Company Name>
Version	v<Number>.0
Status	Draft for Review
Effective Date	<Date>
Next Review Date	<Date> (12 months after Effective Date, unless otherwise stated)
Document Owner	Total Rewards, <Company Name>
Process Owner	Total Rewards in partnership with Finance and Procurement
Approvers	<Chief People Officer Name> (CPO), <CFO Name> (CFO), <GC Name> (General Counsel)
Applicable Geographies	<Country/Region List>
Supersedes	<Prior Document Title and Version>
Document ID	TR-PRQ-CLUBS-<ID>

Purpose and Objectives

The purpose of this document is to define the governance, eligibility, funding, approval, taxation, and compliance standards for company-supported club memberships offered by <Company Name>. These guidelines ensure that any club membership paid or reimbursed by the company:

Supports legitimate business objectives such as client development, professional networking, and executive representation
Aligns with cost stewardship, equity, and compliance standards across <Company Name>
Provides clear processes for approval, payment, reporting, and tax treatment
Minimizes legal, reputational, and financial risk

Primary objectives include:

Establishing a consistent global framework with controlled local flexibility
Enabling senior leaders and eligible roles to engage in client-facing forums that drive revenue and brand positioning
Ensuring transparent tracking of costs and measurable return on investment

Scope and Applicability

In Scope

Company-funded or company-reimbursed memberships to social, dining, business, professional, athletic, and networking clubs used for business relationship development
Initiation fees, annual dues, assessments, and reasonable guest or usage charges related to eligible memberships
All employee levels and employment types where explicitly designated as eligible
All forms of payment: direct invoice by <Company Name>, corporate card, or employee reimbursement
Global operations where local law permits such benefits

Out of Scope

Purely personal memberships unrelated to business use (e.g., private hobby clubs with no client or business nexus)
Political organizations or lobbying clubs
Country clubs or clubs with exclusionary membership practices inconsistent with <Company Name>’s values or law
Airline lounges, airport clubs, or hotel loyalty programs governed under separate Travel & Expense policies
Professional association fees governed by separate Professional Memberships policy (if applicable)

Applicability

Applies to employees of <Company Name> in <Country/Region List> as documented in the Applicability Matrix
Where required, local addenda may supersede specific sections to comply with local laws or tax regulations
For union-represented employees, applicable collective bargaining agreements govern in case of conflict

Definitions and Acronyms

Club Membership – A paid membership to a private or semi-private organization offering facilities and events for networking, dining, or recreation
Initiation Fee – One-time fee required to join certain clubs
Annual Dues – Recurring fees charged by a club to maintain membership
Assessments – Special additional fees levied by a club, often for capital improvements
Business Use – Use of the membership to develop clients, prospects, partners, or for approved company events
Imputed Income – Taxable value assigned to personal use of a company-provided benefit
Gross-Up – Employer-paid tax on a taxable benefit so that the employee is kept whole
TR – Total Rewards
GL – General Ledger
KPI – Key Performance Indicator

Guiding Principles

Business Purpose – Memberships must primarily enable measurable business development or brand representation
Equity and Stewardship – Benefits are provided fairly while managing costs responsibly
Compliance – Adherence to tax, anti-bribery, anti-corruption, privacy, and labor laws
Transparency – Clear documentation of approvals, costs, and usage
Local Flexibility – Limited adjustments for market norms where justified and approved
Review and Accountability – Periodic re-justification and measurable outcomes

Program Overview

Eligible Membership Types

Business, dining, and city clubs that facilitate client meetings and networking
Professional networking clubs with cross-industry access beneficial to business development
Athletic clubs when used to host client activities or health-related networking events
Executive clubs that provide access to executive forums and thought leadership relevant to <Company Name>

Ineligible Membership Types

Clubs with discriminatory membership policies or practices
Organizations with political or religious advocacy as a primary purpose
Purely recreational clubs without a substantiated business rationale
Any club on a restricted or sanctioned list per <Company Name> compliance

Eligibility Criteria

Role-Based Eligibility

Tier A (Executive Leadership) – CEO, C-Suite, and direct reports
Tier B (Senior Commercial Leaders) – Regional Heads, Country Managers, Sales Leaders responsible for revenue goals
Tier C (Market-Facing Executives) – Client Directors, Business Development Executives, and equivalent roles
Exceptions for other roles require pre-approval per the Exception Process

Minimum Eligibility Conditions

Demonstrated business need with expected client engagement plan
Performance in good standing and compliance with Code of Conduct
No outstanding repayment or policy violations related to expenses or benefits

Allowances and Financial Limits

Standard Annual Allowances

Eligibility Tier	Standard Annual Dues Limit	Initiation Fee Coverage	Guest/Usage Charges	Local Adjustment Range
Tier A	<Currency> <Amount> per year	Up to <Currency> <Amount> one-time, amortized over <Number> years	Up to <Currency> <Amount> per month with receipts	±<Percentage>% subject to local approval
Tier B	<Currency> <Amount> per year	Up to <Currency> <Amount> one-time, amortized over <Number> years	Up to <Currency> <Amount> per month with receipts	±<Percentage>% subject to local approval
Tier C	<Currency> <Amount> per year	Up to <Currency> <Amount> one-time, amortized over <Number> years	Up to <Currency> <Amount> per month with receipts	±<Percentage>% subject to local approval

Initiation Fees

Initiation fees may be reimbursed or paid directly once per club per eligible employee
Amortization is required for accounting and clawback purposes
If the employee leaves <Company Name> within <Number> months of payment, a prorated repayment may be required unless prohibited by local law

Caps and Cost Controls

No more than <Number> active company-funded memberships per eligible employee without exception approval
Annual cost growth target is limited to <Percentage>% year-over-year without documented business justification
Procurement-negotiated corporate rates with preferred clubs should be used whenever available

Approval and Governance

Approval Workflow

Employee discusses business need with manager and prepares a brief business case
Manager endorses and forwards to eligible approver per Approval Matrix
Total Rewards reviews for policy alignment and tax considerations
Finance validates budget availability and GL coding
Final approval by designated approver; Procurement engages with <Vendor Name> as needed
Payment method is established (direct bill, corporate card, or reimbursement)
Annual revalidation occurs before dues renewal

Approval Matrix

Request Type	Employee Tier	Approver 1	Approver 2	TR Review	Finance Review
New Membership within limits	Tier A	CEO or Delegate	CPO	Required	Required
New Membership within limits	Tier B	VP or Country Manager	Regional GM	Required	Required
New Membership within limits	Tier C	Director or Sales Leader	VP or Country Manager	Required	Required
Any Exception or over limit	Any	CPO	CFO	Required	Required

Documentation Required

Business case including target clients, expected meetings, and KPIs (e.g., <Number> qualified meetings per quarter)
Confirmation that club policies align with <Company Name> code and anti-discrimination standards
Local tax summary from TR or Finance indicating likely tax treatment and gross-up status

Taxation and Accounting Treatment

Tax Principles

In many jurisdictions, employer-paid club memberships are taxable benefits unless primary use is business and substantiated
Personal use or unsubstantiated business use will be treated as imputed income
<Company Name> may gross-up tax on imputed income for Tier A and Tier B employees in specific markets, per the Gross-Up Policy

Tax Policy Guidelines

Business Use Threshold – At least <Percentage>% of usage must be documented as business-related to avoid imputed income where permitted by local law
Gross-Up Policy – For taxable benefits, the company will gross-up for Tier A in <Country List> and not gross-up in <Country List>; Tier B and Tier C gross-up status is determined locally
Withholding and Reporting – Finance will impute value monthly or annually as required and report to payroll for withholding by <Date>
VAT/GST – Recoverable VAT/GST may be claimed where allowed, contingent on valid tax invoices and business use substantiation

Accounting Treatment

Initiation fees are recorded to GL account <GL Code> and amortized over <Number> years
Annual dues are recorded to GL account <GL Code> on a straight-line basis
Guest and usage charges are recorded to client entertainment or marketing GL accounts per <Policy Name>
Accruals are recorded at quarter-end for earned but unpaid dues

Substantiation Requirements

Expense entries must include names of attendees, organization, and business purpose
Monthly or quarterly logs from club statements should be attached to expense reports or maintained centrally when direct-billed
Failure to substantiate may trigger imputed income or denial of reimbursement

Vendor and Club Selection

Selection Standards

Clubs must have reputational standing and non-discriminatory policies aligned to <Company Name> values
Preference for centrally negotiated corporate rates with <Vendor Name> or preferred club networks
Location convenience for client access and market coverage

Procurement Involvement

For annual spend above <Currency> <Amount> per site, Procurement should run a competitive process
Evaluation factors include overall cost, facilities, private dining availability, booking flexibility, and data visibility for usage reporting
Contracts should include termination rights, data privacy terms, and spend analytics reporting

Expense and Reimbursement Process

Payment Methods

Direct Bill – Club invoices <Company Name> directly; preferred for ongoing dues
Corporate Card – Allowed where direct billing is unavailable; monthly substantiation required
Employee Reimbursement – Allowed for guest charges and occasional fees; submit within <Number> days of expense

Submission Steps

Confirm membership is approved and within limits
Collect itemized invoice or statement with tax details
Record business purpose and attendees for any guest or dining charges
Code to the correct project or cost center
Submit in <Expense System Name> within <Number> days
Manager approves within <Number> days; Finance audits per standard controls

Documentation Retention

Maintain approvals, statements, and logs for at least <Number> years or per local statutory requirements
Digital records stored in <Records System Name> with role-based access

Usage Standards and Compliance

Acceptable Use

Hosting clients, prospects, and partners for meetings aligned to revenue or strategic goals
Internal events when explicitly approved and cost-effective relative to alternatives
Participation in club-sponsored business forums and speaker series

Prohibited Use

Personal family events or purely recreational use without clients, unless pre-approved and taxed accordingly
Expenditures that may constitute bribery, improper influence, or violate gift and hospitality rules
Content or conduct at clubs that could harm <Company Name>’s reputation

Legal and Ethical Compliance

Adherence to <Company Name> Code of Conduct, Anti-Bribery and Anti-Corruption Policy, and Gifts & Entertainment thresholds
Ensure compliance with local pay-to-play laws and restrictions on public-sector interactions
Conflicts of interest must be disclosed per <Policy Name> before joining any club where a personal relationship may influence decisions

Audits and Monitoring

Finance and Internal Audit may review usage logs, expense data, and approvals
Non-compliance may result in repayment, loss of eligibility, and disciplinary action up to termination

Special Cases and Exceptions

Exceptions

Any request exceeding monetary limits, additional memberships beyond the standard cap, or non-standard club types requires:

Written justification detailing business impact
Approval by CPO and CFO (or delegates)
TR and Legal review for tax and legal implications

International Assignments and Transfers

When employees transfer to a new market, existing memberships should be reviewed and either terminated or transferred if contractually permitted
Early termination fees or buyouts require CFO approval

Termination and Repayment

Upon employment termination, memberships must be canceled effective the last day of employment unless business transfer is approved
If a prorated initiation fee clawback applies, Finance will calculate and coordinate repayment in compliance with local law

Roles and Responsibilities

Employee – Propose business case, adhere to policy, document usage, submit expenses timely
Manager – Validate business need, monitor usage and outcomes, approve expenses
Total Rewards – Own policy, assess tax and benefit implications, support exceptions, ensure equitable application
Finance/Payroll – Manage billing, GL coding, imputed income, gross-up execution, and reporting
Procurement – Source and contract with clubs, negotiate rates, manage preferred suppliers
Legal/Compliance – Review club terms, monitor compliance risks, approve high-risk scenarios
Internal Audit – Periodically test controls and policy adherence
Executive Sponsor – Champion business value, approve strategic exceptions

Implementation Guidelines

Phased Approach

Design – Confirm objectives, eligibility tiers, limits, and markets; align with Finance and Legal
Pilot – Launch in <Country/Region> with <Number> participants; measure client meetings and satisfaction
Rollout – Scale to other markets, onboard preferred clubs, and publish local addenda
Optimize – Review KPIs quarterly, adjust limits, and update preferred club list

Systems and Tools

Configure cost centers and GL codes in <Finance System Name>
Add expense categories in <Expense System Name> with mandatory fields for attendees and business purpose
Establish direct-bill profiles and vendor records in <Procurement System Name>

Training and Enablement

Manager and employee job aids covering approvals and substantiation
Finance and Payroll SOPs for imputed income and gross-ups
Compliance refresher on gifts, entertainment, and anti-corruption

Metrics and Reporting

KPIs and Targets

KPI	Definition	Target
Business Usage Rate	Percentage of logged club events with clients or prospects	≥ <Percentage>%
Cost per Qualified Meeting	Total dues and fees divided by qualified client meetings	≤ <Currency> <Amount>
Budget Variance	Actual spend vs. approved budget	Within ±<Percentage>%
Compliance Rate	Percentage of expenses with complete documentation	≥ <Percentage>%
Supplier Coverage	Percentage of spend with preferred clubs	≥ <Percentage>%

Reporting Cadence

Monthly spend and usage dashboard to senior HR and Finance
Quarterly KPI review with business leaders
Annual program effectiveness report with recommendations

Review and Approval Process

This document is reviewed at least annually or upon material legal or business changes
Total Rewards is responsible for initiating reviews by <Date> each year
Updates require approval by CPO, CFO, and General Counsel
Version control and change tracking are maintained in <Document Repository Name>

Legal Notices and Disclaimers

Club memberships may be considered taxable fringe benefits in many jurisdictions; employees are responsible for understanding their personal tax implications
<Company Name> reserves the right to modify or discontinue the program at any time, for any reason, in compliance with applicable laws
Nothing in this guideline creates a contract of employment or alters at-will employment status where applicable
Where conflicts arise between this guideline and local law, local law prevails and local addenda will be issued

Related Policies and References

Travel and Expense Policy <Policy Code>
Gifts, Entertainment, and Anti-Corruption Policy <Policy Code>
Professional Memberships and Certification Policy <Policy Code>
Code of Conduct <Policy Code>
Data Privacy Policy <Policy Code>

Forms and Records

Club Membership Business Case Form <Form ID>
Exception Request Form <Form ID>
Monthly Club Usage Log <Form ID>
Preferred Club List and Rates <Document ID>
Local Tax Treatment Matrix <Document ID>

Data Privacy and Security

Personal data collected for membership administration will be limited to what is necessary for approval, billing, and compliance
Data will be processed per <Company Name> Data Privacy Policy and local laws in <Country>
Access to records is restricted to authorized personnel in TR, Finance, Procurement, and Audit

Country and Market Addenda Framework

Local HR and Finance may propose addenda to adjust limits or tax handling due to market norms or law
Addenda must specify deviations, justification, and effective dates, and be approved by TR, Legal, and Finance
Addenda are stored with this guideline and communicated to impacted employees

Change Log

Version	Effective Date	Summary of Changes	Author
v<Number>.0	<Date>	Initial release	<Name>
v<Number>.1	<Date>	Updated limits for <Country>; added gross-up clarification	<Name>

Glossary of Terms

Amortization – Allocating a cost over a defined period
Clawback – Recovery of previously paid amounts under agreed conditions
Direct Bill – Vendor invoices the company rather than the employee
Exception – Approval to deviate from the standard policy
Gross-Up – Company pays additional tax to offset employee’s tax on a benefit
Imputed Income – Non-cash benefit value treated as taxable income
Preferred Supplier – Vendor selected through sourcing with favorable terms
Qualified Meeting – Meeting with a client or prospect with documented business agenda and outcome

Communication to Employees and Managers

About this benefit At <Company Name>, certain roles may be eligible for a company-supported club membership to help build client relationships, host meetings, and support our brand in the market. This section explains what the benefit is, who may qualify, and how to use it responsibly.

Who may be eligible Eligibility is based on job responsibilities and business need. Generally, senior leaders and market-facing roles such as client directors and business development professionals are considered. If you think a club membership would help you meet clients or advance strategic partnerships, talk with your manager first.

What the company covers If approved, the company may cover part or all of your annual dues and, in some cases, a one-time initiation fee. We also cover reasonable guest and usage charges when you are hosting clients or prospects. Spending limits vary by role and location. Your approval letter will confirm your limits in <Currency>.

How to request a membership

Discuss the business need with your manager and identify the club that best supports your client work
Complete the Club Membership Business Case Form in <System Name>
Attach a brief plan for how you will use the membership to meet with clients or prospects
Submit the request for approval; you will be notified of the outcome and next steps

Paying and expensing In most cases, we set up direct billing so the club invoices the company. If you pay with a corporate card or out of pocket, submit your expenses in <Expense System Name> within <Number> days and include the business purpose and attendees for guest charges.

Your responsibilities

Use the membership primarily for business purposes
Record who you met and why, especially for meals and events
Follow our Code of Conduct and Gifts & Entertainment rules
Keep an eye on your spending so you stay within your approved limits

Taxes In some countries, club memberships may be considered a taxable benefit if used for personal purposes. If any part of the benefit is taxable, we will let you know whether the company will cover the taxes (a “gross-up”) or whether it will appear as imputed income on your payslip. If you have questions, contact <Payroll Contact>.

If your role changes If you move to a role that does not require a club membership, we may end the benefit at the next renewal. If you are transferring to a new location, we will review whether your membership can be transferred or should be canceled.

Using clubs responsibly We expect you to use clubs in a way that reflects our values. That means choosing inclusive venues, treating staff respectfully, and avoiding any activities that could be seen as inappropriate or intended to improperly influence a decision. If you are unsure whether an event is appropriate, ask your manager or Compliance.

Questions and support

For eligibility and approvals, contact Total Rewards at <Email>
For billing or expenses, contact Finance at <Email>
For policy and ethics questions, contact Compliance at <Email>

This benefit exists to help you build meaningful client relationships and achieve better business outcomes. With thoughtful planning and responsible use, a club membership can be a valuable tool for your success and for the growth of <Company Name>.

Document Information:

Document Type: Club Memberships Guidelines
Category: Perquisites & Programs
Generated: August 28, 2025
Status: Sample Template
Next Review: <Insert Review Date>

Usage Instructions:

Replace all text in angle brackets < > with your company-specific information
Review all sections for applicability to your organization
Customize content to reflect your company's policies and local regulations
Have legal and HR leadership review before implementation
Update document header with your company's version control information
At bottom of the document you find a short example on how the content could be communicated to end-users, for instance employees.

This sample document is provided for reference only and should be customized to meet your organization's specific needs and local legal requirements.