Chatham Yacht Club

Teaching Love of Sailing on Pleasant Bay Since 1921

CYC Capital Plan Explained

In March of 2011, the CYC Master Capital Plan was approved at the mid-winter meeting and implemented the following year. The following is a review of the plan and its purpose and a reminder that for each year we are asking each member to contribute something towards funding the plan. 

  • What is a Master Capital Plan?
    • It is a tool for long term financial planning
    • It is a projection of future Capital expenses such as replacement of our 420 Fleet, replacement of our motorboats and/or their engines, major repairs to our dock and club house, to name a few.
    • It is a plan to set aside money on a yearly basis to prepare for these anticipated expenses
  • Why a Master Capital Plan?
    • To eliminate the yearly requests to the membership to fund individual ‘big ticket’ items
    • To ensure that our capital assets are replaced in a responsible and timely manner
    • To help to maintain membership and class costs at an affordable level
  • What are the details of The Plan?
    • Each year we will collect and set aside a pre-determined amount of money towards each future purchase.  
      • For example; if we will need to purchase a new whaler engine in 5 years, and we project that the engine will cost us $8,000, we will need to set aside $1,600 each year for the next 5 years.  In this way, by the time replacement is needed, we will have the $8,000 in the bank.  No letter from the Commodore pleading for earmarked donations.
    • The Plan outlines savings plans and replacement schedules for all of our Capital Assets.  
      • 420’s – 2 per year, 420 sails, 420 dollies
      • Motorboats, motorboat engines
      • Trailers
      • Moorings
      • Dock – Capital repairs not yearly maintenance
    • The moneys needed to fund The Plan, while starting out higher, will decrease yearly until the plan is fully funded and then level out to approximately the amount that our members typically donate on a yearly basis.
    • The Plan will be modified as needed on a yearly basis, but a more extensive long term adjustment will be made following our 2017-18 strategic planning.
  • How has the plan been modified since its inception and our extremely successful Building Fund?
    • At the 2013 annual meeting the membership voted to move some items out of the Capital Plan and to use the remaining funds in the Building Fund for these expenses. The following items were moved from the Capital fund
      • Capital repairs to the new clubhouse
      • Beach replenishment
    • Winter Storage is no longer needed in our Capital Plan as we now have space to store more boats in the new clubhouse.
  • What The Plan is NOT
    • This plan is NOT a plan to fund recurring yearly expenses or make up for operational deficits
    • This plan does NOT provide funds for expenses other than those specifically itemized
  • How does The Plan affect you?
    • We are asking that the ENTIRE membership pitch to support The Plan.  

Chatham Yacht Club | P.O. Box 531 | North Chatham, MA 02650

CYC is a 501(c)(3) Non-Profit Organization. Your donations are tax deductible!

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