IT services you need to include in your budget
There are 3 main aspects of IT costs at the Club:
- Capital IT Expenses
- Operational IT Expenses
- Day-to-Day support
Capital IT Expenses
A capital budget is a strategic tool for businesses to plan and make decisions about significant, long-term investments in upgrades and replacements.
Capital expenses include:
- New computers and servers
- One-time software purchases
- New telephone system
- New CCTV system
- Network upgrades (switches, access points, cabling)
One deadline has already passed that many clubs haven’t budgeted for. Microsoft ended free support for Windows 10 in October 2025, so any machine still running it either needs paid Extended Security Updates, which double in price each year, or replacement. If you have Windows 10 devices at the front desk, in the pro shop, or in the kitchen, their replacement belongs in this year’s capital budget, not next year’s.
As a rule of thumb, plan to replace servers every 3 to 4 years, routers every 4 to 5 years, mobile devices every 2 to 3 years, and computers every 3 to 5 years.
We also suggest asking your IT provider for a hardware state report before budget season, so recommendations arrive while you can still act on them.
Operational IT Expenses
An operational budget covers your predictable, recurring technology costs. Finance teams typically review it monthly against actuals.
This category includes:
- Monthly IT, CCTV, and telephone system maintenance
- Software subscriptions, including club management platform fees
- Cloud services and storage
- Security subscriptions and monitoring
- Cyber insurance premiums
- AI tool subscriptions (more on these below)
- Website hosting and renewals
- Staff costs, whether in-house, outsourced, or both
- Training
Last year’s budget is your best planning tool here. It shows what you actually spent, which subscriptions crept up at renewal, and where estimates missed.
Day-to-day support
Ongoing support is the foundation for smooth operations and member satisfaction. It covers computer, network, server, and mobile device support, monitoring services, managed backups, and proactive network maintenance. Whether delivered in-house or by a provider, it should appear in the budget as its own line rather than being absorbed into “miscellaneous.”
Cybersecurity: now a compliance requirement, not an option
In 2024 we listed cybersecurity as a single bullet point. In 2026 it needs its own section, because cyber insurance carriers have changed the rules.
To get or renew coverage, most carriers now require multi-factor authentication on all systems, endpoint detection and response (EDR) on every device, tested backups, and a documented incident response plan. Clubs that can’t demonstrate these controls face coverage denial or premium increases, while strong controls can reduce premiums by 15 to 30%. For a typical small business, a $1M policy runs roughly $1,500 to $3,000 per year, though higher‑risk profiles can push toward $5,000.
Your cybersecurity budget lines should therefore include:
- MFA licensing (roughly $3 to $6 per user per month)
- EDR on all endpoints and servers ($5 to $15 per user per month)
- Managed backups with periodic restore testing
- Security awareness training for staff
- The cyber insurance premium itself
Clubs are attractive targets because they hold member payment data, personal information, and often high-profile names. Budgeting for these controls is cheaper than explaining a breach to your Board.
Budgeting for AI: three costs to plan for
You don’t need a large AI budget in 2026. You need to know where AI costs will show up, because they arrive through three different doors.
1. AI features inside tools you already pay for
Club management platforms, POS systems, and phone systems are adding AI tiers, and those features usually surface as price increases at renewal. Before renewing any major contract, ask the vendor which AI features are included and which sit behind a higher tier.
2. Standalone AI assistants
Business plans for tools like ChatGPT, Claude, or Microsoft Copilot run roughly $25 to $30 per user per month. Budget these only for staff who will actually use them, and pair the subscription with a short written AI use policy. Staff pasting member data into free AI tools is a real data-leak risk, and a policy costs nothing.
3. AI-driven club solutions
This is where clubs see returns: member communication, demand forecasting for dining and events, and staff scheduling. The CMAA has made AI a core education topic, including a dedicated workshop at its 2026 World Conference, which tells you where the industry is heading. We covered the specific technologies in our guide to 2026 technology trends for private clubs.
“The clubs that struggle with AI costs aren’t the ones that budgeted too little. They’re the ones surprised at renewal, when their existing vendors added AI tiers they never discussed. Ask the question before you sign.” — Denis Kateneff, Club Support
Sample annual IT budget for a mid-size club
The figures below are illustrative ranges for a club with 40 to 80 staff. Your numbers will differ, but the structure is what matters.
How to create an IT budget
- Roadmap your IT service requirements. Start with last year’s budget and actuals. If you added a subscription mid-year, carry its full cost forward; if you made an unplanned hardware purchase, don’t double-budget it.
- Decide what to outsource. Evaluate whether outsourcing certain IT services makes sense for your club. A provider that knows the club industry can also flag costs you’d otherwise miss, like insurance compliance gaps.
- Inventory your existing equipment. Identify aging hardware, note anything still on Windows 10, and check the condition of CCTV, phone systems, and the member portal. This step directly feeds your capital budget.
- Set priorities. Rank IT needs by their impact on operations, weighing security, efficiency, and member experience. Insurance-required security controls go first, because the cost of skipping them is losing coverage.
- Talk to your staff and managers. They use the equipment daily and usually know what’s failing before finance does. If several people raise the same issue, it probably belongs in the budget.
- Plan for what’s next. Allocate something for growth, training, and technology changes. AI line items will likely grow year over year, so build in room rather than treating this year’s figure as fixed.
FAQ
What percentage of revenue should a club spend on IT? Most clubs land between 3 and 5% of annual revenue, with smaller clubs at the higher end of the range. The 20% annual hardware refresh rule fits inside that total.
Does a club really need cyber insurance? Yes, and increasingly your carrier decides your security budget for you. Without MFA, EDR, and tested backups, most insurers will decline coverage or raise premiums sharply.
Should AI be a separate budget category? Not yet for most clubs. Track it as line items inside operational expenses, and review vendor renewals carefully, since that’s where most AI costs first appear.
Make budgeting simpler
At Club Support, we’ve been helping clubs plan IT budgets for over 20 years, and we know which line items get missed. If you’d like a hardware state report or a second set of eyes on your draft budget before it goes to the Board, get in touch.
Or we can do technology master planning for your club. It includes budget planning as well as the full audit of your club’s technology: infrastructure, systems, and cybersecurity review, future state design, technology roadmap, and executive report.
