We need to look at the bigger picture and act taking more into consideration than making a onetime 25.6% dues jump.

If we need to reach $49, I believe the more prudent way to do so would be graduated increases over multiple years that the members are forewarned about.

Obviously we can’t continue to operate at a loss. That leaves us one of two ways, or a combination of both, to balance the budget: increase revenue or decrease expenditures. While a prolonged zero based budgeting exercise might identify some minor savings, I don’t think it is in the realm of reality that we could trim here and there to balance the budget. I also don’t think we want to wholesale cut any current programs.

A dues increase is an easy way to raise revenue, albeit at the expense of some number of members. It is however not the only way to increase revenue. Sales of advertising contributes substantially to the League’s income. We need to look beyond the traditional direct amateur related advertisers and start seeking out advertisers offering things that our demographic would be interested in. Among the ranks of amateurs are many tinkerers and builders. Harbor Freight advertises in the various NRA monthly magazines as they realize a sizeable percentage of NRA members are tinkerers and builders; they would be a good candidate for QST advertising.

Another way to raise revenue is to increase the number of members. While we have had some growth each year, hidden by those increases is that we lose a significant percentage of members each year that don’t renew. They are replaced with new members. If we retained a much larger percentage of members year to year, our growth would be much greater.

Bylaw 4 allows for multi-year dues discounts up to five years. I’ve only seen 1, 2, and 3 year options currently being offered. Have we recently done a study to see if one means of increasing member retention would be to push the multi-year renewals, all the way up to 5 years, much more aggressively?

One of our significant expenses is printing and shipping of QST. Have we ever done a study that determines the savings in printing/shipping costs versus the loss in advertising dollars from print QST (due to the decreased circulation)? Of course that should also have some positive offset in the readership of Digital QST and therefore some increase in advertising revenue from it. Perhaps there is some percentage discount that can be given for not receiving print QST that would result in cost savings and increase member retention?

I want to see all research and reports (not just short summaries) on all of the above that might exist. I understand that we have A&F to sort thru things and make recommendations, but I have a fiduciary duty to the corporation as well as a duty owed to my members to personally review the information and make my own decision.

Unless and until I am satisfied that we have done more than simply compute that we can tax our members additional membership dues to balance the budget, I will vote no on any dues increase.

73,

Doug

K4AC

From: arrl-odv [mailto:arrl-odv-bounces@reflector.arrl.org] On Behalf Of G Widin
Sent: Thursday, December 18, 2014 9:44 AM
To: arrl-odv
Subject: [arrl-odv:23632] Dues increase

I have had several questions about A&F's involvement with a dues increase.  Here is a brief summary.

Even in 2013, members of the Board had begun discussing the inevitability of a dues increase.  With the Centennial coming up in 2014, it clearly was not going to be a year to announce a dues increase, so everyone was spared having to think about it too deeply.

As we began 2014, the need for a dues increase became more and more evident.  In the first half of 2014, A&F had two subcommittees that began work on a dues increase and possible changes to life membership.  There were brief reports by these groups included in the July Report of A&F, with further discussion at the July Board meeting, which may have been lost in the noise of the Convention.  The dues study subcommittee developed scenarios for a $6 and a $10 increase, and these were presented at the November A&F meeting.  Simultaneously, staff was developing the 2015-16 plan, and included a dues increase in the plan.  At the November meeting, A&F voted to recommend the plan to the Board for acceptance at the upcoming January meeting.  This is the plan which includes the $10 increase.  A&F did discuss a smaller increase, but it was realized that this would mean coming back to the membership again in 2 or 3 years, and it was felt that taking our medicine all at once was preferable to multiple small sips.  Of course, we will still not be able to wait another 10 years for the next increase.  A&F also discussed life membership, and decided not to make any changes at this time, although since life membership is priced at a multiple of the current yearly dues, the price of life membership would necessarily rise, as well.

Thus, in order to implement the dues increase, Dave sent out the necessary enabling changes to bylaws, enough ahead of time so they can be properly voted on at January's meeting.  This probably wouldn't have taken people so much by surprise if the A&F Minutes from the November meeting had already been issued, but some situations conspired to delay their compilation.  I will be working on the minutes and get them to the Board as soon as possible.  I apologize that it was not sooner.

No one likes the idea of a dues increase.  The financial analysis that led to the current 2015-16 plan made it clear that we could not postpone an increase any further and still maintain a fiscally healthy organization.  Most members I have talked to, and other Directors have told me this as well, understand that 10 years of no dues increase cannot continue, and many are even surprised that the increase would only be $10.

Every now and then, the Board must take action that it knows will not be popular, but that is necessary for the health of the organization.  Regretfully, this is one of those issues.

73,

       Greg, K0GW

       2014 A&F Chair