How to run a tontine: the complete guide

Running a tontine well means avoiding oversights, calculation errors and conflict. Whether you are the treasurer or the chairperson, here are the 6 essential steps for a healthy, transparent tontine.

1. Set the ground rules first

Before the first session, put everything in writing: the contribution amount, session frequency, number of participants and “shares”, date and place, and above all the penalties for late or missed payments. Clear rules accepted by everyone prevent 90% of disputes.

2. Set the beneficiary order

The order decides who receives the pot each session. Two common methods: a random draw (the fairest) or a negotiated order based on needs. Record this order and don't change it for people already served.

3. Collect contributions each session

At every session, record who paid and who didn't. The total collected should equal the number of shares × the contribution. Hand the pot to that round's beneficiary and document it (a receipt or signed slip).

4. Apply fines fairly

Fines aren't about punishing but about protecting the group. Apply the same schedule to everyone: late contribution, absence, and especially beneficiary default (someone who already received their pot but stops contributing). Equal treatment is the key to trust.

5. Ensure transparency

Every member should be able to check where the tontine stands: who contributed, who was paid, how much is in the fund. An up-to-date record everyone can see defuses tensions before they appear.

6. Get the right tools

A notebook works… until the first error or the first lost notebook. EMS Association Manager Pro handles the beneficiary order, contributions session by session, automatic fines, the fund and receipt slips — online and offline, synced between chairperson, treasurer and secretary.

Read also: What is an accelerated tontine? · How to manage an association.