Branches and Sections allows you to divide up your club and, if required, give certain permissions to members within those Branches and Sections. Entitlements on Membership Subsets is a premium add-on feature that allows you to define Roles within the Subsets and give the role-holders permissions pertaining only to members of those subsets. Think of the Subsets as areas of responsibility.
If you had a Tennis and Squash club, you could have one site but two Subsets, one for each sport. This would allow the two halves of the club to run independently with their own Chairman, Membership Secretary, Coaches, etc. The admins would only have jurisdiction over the members of their own club. So, for example, the Tennis Coach would only be able to see the contact details of the tennis members and would just have normal member-level access to the squash members' details. In addition, perhaps, they would be able to send emails to the tennis members, but not the squash members.
Not at all, this Add-On makes the requirement for two websites obsolete! You can divide members into separate sports, groups, ages, etc and then assign club roles to oversee each group, including Membership Secretaries.
Entitlements can be set for the different membership Subsets, meaning you can restrict access to certain pages, sections, modules, etc to certain groups but you could also achieve this without the need for this add-on.
Not at all. Sports is just an example of a way a club or organisation may want to divide themselves, but there are endless possibilities. You could split the club by geographic branches, into adults and juniors, or even playing and social members. The divisions should be thought of as areas of responsibility.
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