A measurement mechanism created by the Destination Club Association, the Net Asset Test measures the total assets of a club against the total value of the membership fees. To pass the test, clubs must have assets that equal or are greater than 66% of the membership fee obligation.

The calculation includes adding the club's cash, marketable securities, and real estate assets and subtracting debt secured by real estate and refundable membership deposits.

Back to the Destination Club Glossary.