Rotational Stokvel Clubs are the simplest type of Stokvels, where members contribute a fixed amount of money regularly. The money is then given to members in turns, and they can use it for any purpose. Contributions are usually made in cash, but some groups are starting to deposit funds into bank accounts.
Savings Clubs are Stokvels where members contribute money regularly and receive a lump sum at the end of a cycle, typically once a year. The money is collected in cash and stored in a Stokvel Club Account at a bank. At the end of the cycle, the funds are withdrawn and distributed to members in cash.
Grocery Stokvels involve members contributing money specifically for buying groceries at the end of the year. Purchases are usually made in bulk from wholesale or Cash & Carry outlets during the Stokvel Buying Season. Some groups save the funds in a Stokvel Club Account, while others save directly with the outlets.
Burial Societies provide informal insurance to help members and their families with funeral costs. Members contribute money regularly, and the society offers support during funeral preparations. Some societies partner with insurance companies to reduce risk.
Investment Clubs pool funds to access investment opportunities such as bank interest, stocks, or business ventures. The duration of keeping the money invested varies among groups.
Social Clubs pool funds for arranging social activities, either during regular meetings or for less frequent events.
Party Stokvels are groups where members pool their money to organize events or parties that require entrance fees or other charges. The profits from these events are divided equally among the contributors. Over time, some of these Stokvels have evolved into official business organizations.
Borrowing Stokvels save money in a pool and provide loans to members and sub-members. They often charge high interest rates for sustainability and profitability.
Property Stokvels have various uses. The most common ones include buying and leasing properties, where members contribute money to purchase and manage a property for rental income. Another use is home purchasing, where members pool funds to secure homes for each member. Stokvels are also utilized for investing in vacant land, paying it off and using the collective funds for future development. Additionally, members can purchase shares in a property investment portfolio, generating annuity income without the hassle of property management.
Multi-function Stokvels can evolve to include additional functions as the bond between members strengthens. For example, Rotational Clubs may add a Savings Club or a loans function. Grocery Clubs may expand to offer burial services. Social Clubs can transform into Burial Societies or Investment Clubs. Successful Burial Societies may also invest their surplus funds.