2018 was a watershed year for the National Club Association (NCA) and NCA CONNECT, highlighted by reporting on critical advocacy victories and timely articles that informed the industry on its most pressing issues. Take a look back at this past year of NCA CONNECT to learn what 2018 issues were most important to you.
1. Tax Case Goes Against Club (November)
In November, a federal court recently upheld a lower court’s decision against a club regarding its tax reporting. For several years, Losantiville Country Club in Cincinnati used losses from numerous nonmember events to offset its tax liability on investment income. The court ruled that Losantiville was in violation of tax law when it failed to conduct nonmember events with the “intention” of generating a profit and used losses from those events to reduce its tax burden. The court referenced nine factors
2. 5 Myths About Private Clubs (August)
Many people misunderstand the purpose of private clubs; it is not to keep people out, but to create a community built on shared values. In this popular series, NCA President & CEO Henry Wallmeyer debunks 5 common myths surrounding our industry.
3. California’s New Independent Contractor Test (June)
Last summer, the California Supreme Court decided to implement a new, more stringent test to determine whether a worker is an independent contractor (IC) or employee. For club leaders in California, this decision will make it more difficult for clubs to classify workers as ICs.
4. Under the Radar, NLRB Makes Two Key Pro-Club Rulings (February)
Lost during December 2017’s heated discussions about funding the government and the new tax bill, the National Labor Relations Board (NLRB), led by Chairman Philip Miscimarra issued two rulings that have finally put to rest two critical club issues stemming from the Obama-era. Here is an explanation of the two rulings and what they mean for private clubs.
5. Court Orders WOTUS Into Effect for 26 States (September)
In September of 2018 a federal court in South Carolina ruled that the Environmental Protection Agency’s (EPA) move to delay the start date of the Waters of the United States (WOTUS) rule until 2020 was not valid. As a result, the rule was allowed to go into effect for 26 states. Read the fallout from the decision here.
6. Majority Vote Vs. Consensus (October)
While much of our society seems to thrive on the win-lose construct and the concepts of collaboration and consensus have in some halls become anathema, the majority-rules approach is not necessarily the best model for decision-making in a member-owned club.
7. A Tale of “Three” Cities (December)
Club Benchmarking data reveals a tale of “three” cities happening in the club industry, which appears to be a growing divergence. According to our research, one-third of clubs is prospering and growing, one-third is “going sideways” and one-third is falling further behind every year. The metric we use to measure prosperity and growth is the compounded annual growth rate (CAGR) in net worth over time, aka Members’ Equity or Unrestricted Net Assets.
8. Local Tax Assessment Bill Goes Statewide (March)
Continuing our work to defend the private club industry, the National Club Association created a coalition of clubs, state leaders and a local lobbying firm, to combat a Montgomery County, Md., bill that would have dramatically increase the property tax assessments of clubs in the county. Here is how we are fighting this new legislative trend.
9. Another Advocacy Win for Clubs (July)
Over the past year, NCA has successfully helped defeat two bills that would harm private clubs in Maryland and New York.