BREAKING: NUS on the verge of BANKRUPTCY ahead of £3 million deficit
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A document obtained by TNS shows that NUS is in serious financial difficulties. A two-page document signed by NUS President Shakira Martin was sent to CEOs and student union presidents across the country. Shakira explains that the NUS 'are projected to post a significant deficit this year without enough resources to cover the loss.' According to their calculations, the NUS is predicted to suffer a £3 million pound deficit for this and future financial years. The document cites 'competition in student discounts' as a challenge to their income stream. This could possibly be a nod to Unidays and Student Beans, two successful sites offering online and in-store discounts to students across the world. Both sites are free to use as long as students sign up through their university login portals. The NUS, however, charge £12 per year for their NUS extra card offering access to student discounts. They also provide a two and three year NUS extra card at £22 and £32 respectively. Recently, they discontinued the NUS extra scheme and launched the Totum card as a way to not only compete with the likes of Unidays but provide more services to students at NUS member unions. NUS extra was one of NUS's main sources of income besides student union membership fees. Alongside structural problems, the document adds that the NUS is facing 'competitors in student discount, trading support, and policy and strategic support. We have faced challenged to all three of these income streams, but rarely to all three at the same time.' Shakira explains that the NUS is taking urgent action to stabilise their position. Part of the plan to 'remain solvent' will include a combination of 'borrowing against the building we own, making cuts to staff and turning off some of the activity we deliver.' We do not yet know whether the plan is to put the NUS building up for collatoral or remortgage it. More to follow. Featured image courtesy of Willowbarbican
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