I would consider it assuming the following:
The flying club contributes towards routine maintenance and required checks
The flying club pays for fuel used (of course)
The flying club provides free parking / hangarage
The flying club pays all home base landing fees
The flying club is responsible for all fees incurred by their students
The flying club pays for insurance and will pay any insurance excess
The flying club pays for all repairs above normal wear and tear (spilled coffee, ripped seat covers, bust trim, flat spotted tyres etc....) casued by their students
Sounds fair to me.