| ADVICE ON COSTING RALLIES AND PAYMENT ABROAD | |
1 | Pricing a rally creates the biggest headache for most ROs and the following, along with advice elsewhere in the Guide, may assist your planning and costing. | |
2 | Calculating the Rally Fee. The best way to ensure that a rally is viable is to calculate it first on the number of units you would like including the cost of any trips, meals etc, not forgetting to include welcome drinks, nibbles, prizes, plaques, printing, HCI donation etc plus allowable expenses. Ideally you should then cost it again using a lower attendance figure to see if it is still viable. Once you are satisfied with your rally fees add an extra contingency amount, £10 per unit is suggested, to give you flexibility. You may consider increasing this amount for longer or more complex rallies. This is particularly so for continental rallies to take into account belated Tourist Tax or site fee increases and the currency exchange rates. If you are running trips or tours any tips can be paid from the rally funds. However, if you are considering this course of action always ask the ralliers permission first, ideally at the meet and greet. | |
3 | Allowable Expenses. It is very difficult to list allowable expenses other than the RO and ARO's site fees (see Para 4 below). The cost of prizes for rally competitions, meet and greet drinks and nibbles, a local walking or cycling map if you are intending such activity etc would be legitimate expenses providing they are supported by receipts wherever possible. There are instances where receipts are not provided, tips for example. These expenses should still be shown on your rally account with a notation that there is no receipt (NR). There may be other expenses in pre-rally planning or during the rally that you may think should, or may, be allowable expenses but before committing to these you should seek advice on whether or not they are acceptable from either the Rally Co-ordinator or the Treasurer. | |
4 | Rally Surplus. It is not unusual to end up with a surplus at the end of a rally. This can be caused by a number of factors such as the £10 non-refundable elements of ralliers' fees who have had to cancel, over estimation of tour or meal costs etc. If the amount is large, for example £5 per unit or more, it is better to refund that amount to the ralliers rather than add it to the HCI donation - the ralliers should get the benefit of any excess and not the club. Any refunds to ralliers should be shown on the rally account. Occasionally, for instance where due to a delay in invoices or a variance in exchange rates occurs, RO's have made a donation to a charitable cause in the past. If you do elect to do this you should ensure that all the ralliers agree. It is their money and they should decide on its distribution. | |
5 | Rally Officers' Site Fees. It has been agreed that RO's should not have to pay for their pitch fees. Usually this is done by negotiating one or two free places with the site owner. However, where this is not possible the RO's site fees should be spread across the other ralliers. If at the end of the rally you have sufficient funds remaining you can reimburse your assistants their pitch fees. In some instances you may have to pay site fees for yourself for the night before the rally begins. If this is the case it would be an allowable expense and charged to the rally. Once again receipts should support this expense. | |
6 | Costing Continental Rallies. Running rallies in Europe is similar to those in the UK with two exceptions; costings and the subsequent payment of fees abroad. The first thing to bear in mind is the fluctuation in the exchange rate as this makes pricing more difficult. To allow for this include a percentage increase in the contingency to cover possible fluctuations. It is always best to work on a lower rate. Not only may there be a difference in the rate but if you are booking a site a year or so in advance, there may be other considerations such as an increase in local tourist taxes and subsequent increase in site fees. In countries with a tourist tax any increase is not announced until the autumn and site owners may be unaware of how much this when you initially book. | |
7 | Payment. The second problem is making payments in Euros as many sites will not accept credit or debit cards and want payment in cash or directly to their bank. Where possible paying with a credit card that does not attract extra charges is the best method as you will get the actual bank rate of the day you pay. However, many sites will not accept credit cards. If this is the case then payment through a bank or specialist money transfer company is generally preferred. It is also safer than carrying large amounts of cash and the exchange rate will usually be better. | |
8 | Payment Through the HCI Bank Account. One method available to RO's is to pay site fees etc through the clubs Euro bank account. To use this facility you first need to contact the Treasurer to ensure that there are sufficient funds in the Euro account as he may have to transfer funds before payments can be made. Once the Treasurer has confirmed that funds are available you have to provide him with details of the exact amount, in Euros, you want to transfer and the details of the receiving banks. The information required is the banks IBAN Number (International Bank Account Number) and their BIC or SWIFT code (Bank Identity Code) and the banks name and address. The site owner will provide this information to you. The Treasurer will then arrange the transfer by BACS (Bankers Automated Clearing Instruction). This usually takes 3 to 5 working days and may incur a charge. As soon as the Treasurer knows the cost of the transfer, which is usually between the bank and tourist exchange rates, he will let you know and all you do is send a sterling cheque to the Treasurer made out to the HCI for the required amount. If an immediate transfer is needed you can opt for a CHAPS (Clearing House Automated Payment System) where funds are transferred within 24 hours. However, CHAPS payments incur a charge of £20 to £30 dependent upon the bank. The only drawback with the foregoing is that the club banks exchange rate is not particularly good in comparison with some other banks and specialist currency transfer companies. When you are paying large sums, 2 or 3 cents to the £ can make a big difference. | |
9 | Specialist Companies. If you wish to transfer amounts exceeding £250 and do not wish to use the clubs bank another simple method but with a far better exchange rate than the high street banks, is an International Money Transfers through a specialist Foreign Currency Broker (FCB). There are numerous companies who transfer large amounts of foreign currencies around the world with CaxtonFX and HiFX being two of the better known. There is also Money Transfer Operators (MTO) like Western Union. The latter charge a fee whilst the former is often fee and commission free. These companies make their profits in the difference between the buying and selling price of the various currencies. Unlike banks they have far lower overheads and buy huge volumes of currency and so can pass on these savings to customers. In 2010 Which? Magazine carried out a survey into the transfer of currencies and HiFX and Caxton FX came out as two of the best and least expensive methods. You should bear in mind that the following are only of use if you are transferring £250 or more and the greater the amount you transfer the better deal you get. | |
| For any transfer of money abroad there are two areas to consider, any fees and the exchange rate. To do this you really have to shop around and compare high street banks with the currency transfer specialists. With the fees you have to consider possible transfer charges, if there are overseas bank receiving fees and, most importantly, compare the exact exchange rates. The exchange rates often change by the minute so it's essential to compare companies one after the other. As the rate can change so quickly you need access to the web to ensure you get the best rates. | |
10 | What Financial Protection is Available? Like banks FCB and MTO companies are required to register with the Financial Services Authority (FSA) and you are able to take any complaints to the Financial Ombudsman. FSA registered firms must keep their customers money separate from their own funds so if they do go bust your money should be safe. Huge multi-national companies including banks use these firms so they would appear to be as safe but, after the recent financial turmoil, we know that even the largest banks can collapse. | |
11 | What Do You Have To Do? After studying the various options you select a company and register on-line after ensuring they are FSA registered. Once your registration is accepted and activated you can use their system. When you want to transfer a payment you go online and give them the details of the amount in Euros you wish to pay and the receiving banks IBAN Number and SWIFT or BIC code. Once this is complete you will be shown the exchange rate at that moment. This can change, up or down, whilst you are watching. As soon as you are happy with the rate shown you confirm the transaction along with your method of payment - bank, credit or debit cards. If you use a credit card there will be a loading. The rate you were given at confirmation will remain in force until payment is made from your bank to the company and your currency is transferred to the receiving bank. This is so whether the exchange rate goes up or down in the interim. With HiFX you will get a confirmation e-mail and text when your payment is made and, if requested, they will also inform the receiving bank that payment is in progress. | |