5.4 Clubs and Societies: Accumulated Fund

Definition

The accumulated fund of a club or society represents the total amount of money the club or society has saved over time. It is the sum of all income received and less all expenses incurred, up to a specific point in time. This fund is crucial for the club's future activities and sustainability.

Calculating the Accumulated Fund

The accumulated fund is calculated by taking the difference between the total income and the total expenses over a period.

The formula for calculating the accumulated fund is:

Accumulated Fund = Total Income - Total Expenses

Example Calculation

Consider a school debating club. Over the past year, the club had the following:

• Total Income: $2,500 (from membership fees, fundraising events)
• Total Expenses: $1,800 (for travel, materials, venue hire)

To calculate the accumulated fund, we apply the formula:

Accumulated Fund = $2,500 - $1,800 = $700

Therefore, the debating club has an accumulated fund of $700.

Table Summary

Item	Description
Definition	Total savings of a club or society over time.
Formula	$Accumulated Fund = $Total Income - $Total Expenses$
Example	A club with $2,500 income and $1,800 expenses has an accumulated fund of $700.

Importance of the Accumulated Fund

The accumulated fund is important because it provides financial security for the club or society. It can be used to:

• Fund future activities and events.
• Cover unexpected expenses.
• Provide grants or scholarships to members.
• Improve facilities or equipment.