An organisation is unit that a contact is associated with when it becomes a member of that organisation. Most of the modules in the MBS suite are multi-organisation aware, but normally only a single organisation is used / licenced. If you are the owner of a club and are using the Club Membership suite to run the membership of the club the default organisation would represent the club and could be renamed to reflect this.
Organisations can be setup with requirements such as member insurance and member licences (additional licences required) which can then be verified for validity when a member is logged for visits or other activity.
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