An equity membership gives you a share in the club: your initiation fee is usually returned in full or in part when you leave, and you get a vote. A non-equity membership is a right to use the club. The initiation fee is usually non-refundable and you have no ownership or vote. Exact terms are set by each club's bylaws, so always read them.
If you are comparing what clubs charge, start with our golf club membership costs guide. For the fee itself, see country club initiation fees.
Equity vs non-equity at a glance
| Equity | Non-equity | |
|---|---|---|
| Ownership | Each member owns a piece of the club | Owned by a person, a small group or a corporation |
| Initiation fee | Usually returned in full or in part when you leave | Usually non-refundable |
| Assessments | Spending beyond normal operations can be passed to members on top of dues | Usually not charged |
| Voting | Members elect committees and vote on major decisions | No direct say in how the club is run |
| Selling | A member may be able to sell the share to a new member | Nothing to sell |
The ownership, refund, assessment and voting points above follow GolfPass's explainer on club membership types. Terms vary by club.
How an equity membership works
At a member-owned club, your initiation fee is a deposit or share, not a fee for walking in the door. When you resign, the club typically returns it according to its bylaws, and the way that happens differs. Some clubs return the money only when a new member joins in your place, which can mean a wait, and some deduct a fee. Neither the wait nor the fee is standard, so ask the club for its own refund terms in writing.
The trade-off is assessments. If the club needs money for a course rebuild or a new clubhouse, equity members can be asked to pay it on top of their regular dues.
What the fee buys at a non-equity club
At a non-equity club the initiation fee is an entry cost. You pay it, you get playing rights, and you pay dues. If you resign you generally get nothing back, though a club's own terms may differ. Because you do not own the club, you are generally not asked to fund capital projects through assessments, but dues can rise.
A worked example
This is illustrative arithmetic, not data from a real club. Say an equity club asks for a $50,000 deposit that is refunded in full when you resign, and a non-equity club asks for a $50,000 fee that is not refunded. If you resign after ten years and the equity refund is paid, your net initiation cost is $0 (before any assessments and the time value of the money). At the non-equity club it is $50,000, or $5,000 a year over those ten years. The comparison reverses if the equity refund is delayed, reduced or tied to new members joining, which is why the refund terms matter more than the label.
Which is better?
- You expect to stay for many years and want a say: equity can make sense, provided you can afford the deposit and a possible assessment.
- You might move or want to keep your cash free: non-equity usually means a smaller commitment and no capital call, but you will not get the fee back.
- You are joining a club that is not in good financial shape: an equity share is only as good as the club, and the refund may depend on new members joining.
A simple rule: choose equity only if the club's accounts and bylaws give you a clear refund path, and choose non-equity if you would rather cap your exposure and accept that the fee is spent.
Questions to ask the membership director
- Is the membership equity or non-equity, and who owns the club?
- Is any of the initiation fee refundable, and when is it paid out? Is there a waiting list for refunds?
- What is the transfer or resignation fee?
- What assessments have been charged in the last ten years, and are any planned?
- What are the dues, food and beverage minimum and other fees?
- Can the membership be sold, transferred to family or converted to another category?
To see how a country club differs from a golf course, read is a country club a golf course. For the full cost picture, see how golf club membership costs break down.
Run the numbers with our break-even calculator, and see how to join a private golf club.
