As an aside, I tried to join the hang gliding club at Newcastle university just as it was being closed down. They had some very nice gliders that they scrapped as the university couldn't stomach the liability of someone having an accident using kit connected to them in any way shape or form. They carried on listing the hang-gliding club in the university prospectus for several years after.
The student's union also tried to shut down the photography society as they considered our chemicals to pose an explosion risk and we couldn't afford the expensive safety facilities they demanded.
If I were going to organise an university flying club, I'd keep the aircraft and liability with a 3rd party - i.e. link up with a flying school - and keep the club as a social and exam-revision club.