Lifetime membership dues

[Brad]

I'm currently taking CLC online, and one of our tasks is to come up with a sample proposal that we think should be brought up to the CSAG. Here's the one I came up with and I felt like sharing:

AGENDA ITEM - PD

SUBJECT: Membership Dues

INFORMATION BACKGROUND: CAPR 39-2 provides that membership dues are payable annually, except for various special membership categories that are exempt. Additionally, Life Members and 50-year members are  exempt from membership dues, even if acting in an Active Member capacity. Currently eservices allows for paying off dues up to 3 years in advance, however similar groups that charge membership dues often have a lifetime membership formula based on the age of the member in order to provide for a lump-sum payment of dues to be paid, thereby freeing the member from recurring dues obligations entirely. This has been proven within these groups to be advantageous to the member who wishes to pay off their dues all at once, while still benefiting the organization.

PROPOSED CSAG ACTION: That the CSAG reccommend to the National Commander that CAPR 39-2 be revised to allow for a formulatic one-time payment of dues for an individual member, with dues below the National level remitted back to their respective levels.

ESTIMATED FUNDING IMPACT: To be determined. The lump-sum influx of dues from those capable of affording it would affect the operating budget at all levels.

REGULATIONS AND FORMS AFFECTED: CAPR 39-2, Civil Air Patrol Membership

So basically, the formula takes your age and determines your factor for lifetime dues. I.e. I am 27 so my factor might be 25. So 25 * 51 comes to $1,275. As you age, you go into a different factor group, i.e.  someone age 40 would only be in a factor group of 20 for example, so they would only have to pay $1,020. Why the drop as you age? Well why buy a 30 year membership in a group if you're 70 years old? You're likely to be dead before it expires so you'd be wasting your money. This scale makes sure you get a return on investment. Of course if you reach 50 year or life membership status first then that obviously takes precedence. Plus the $35 due NHQ would be multiplied by your factor and removed from the lump sum, with the rest released to the Wing Banks.

We have a similar program here with The Grand Lodge of Ancient Free Masons of SC. In fact those factors I pulled out of our code. We also have provisions for 50 year dues-exempt members, life members, and a structured dues system where a portion goes to the Grand Lodge, i.e. NHQ, and a portion remains with the subordinate Lodge, i.e. the Wing and lower levels. The system works there and I feel it could be worth looking into. Granted a good majority of us aren't financially capable of taking advantage of it, but you never know what the future holds.

[a2capt]

My first thought was .. when did eServices start offering more than 1 year again?

.. it doesn't. That drop down can't be changed. They had it be 3 years for a while, and then the claim was made that an accounting software change didn't support advance year memberships, not supporting a GL entry for it.

Something else I heard was that "like 12 people actually used it" (and) "it would cost us more for the 'feature' to be added".

So if they can't even do that, and claim it costs more, the agenda item should really include costs of software upgrade/changes needed to make it happen.

[MSG Mac]

During the May 1991 NEC meeting a Life Membership was approved and announced in the CAP News. The cost then was $1000. Following that announcement there was no change to CAPR 39-2. Questions about it have been that it was A. Never Happened, B. On second thought, It prevents us from kicking someone out of the program, C. We have no way of accounting for the money, or distributing it to the wings.

I see this as a benefit to CAP in several ways; when the member dies, the initial $1000 is still generating interest-Forever. It also keeps our membership numbers high. To those who said that you can't remove a Life Member for cause B.S! And when you do, you still keep the cash and accrued interest.

[SarDragon]

I am a life member of a different organization, and our system works pretty well. There is the usual grumbling because you can't please everyone.

Local group trickles down by just one level, on a per member basis, in the amount 1/12 of 1/6 of the annual dues amount, each month. The group gets an email every month, with the numbers, and the funding gets to the bank by EFT.

OTOH, CAP money trickles down by two levels, in differing amounts at each level, by region and wing. It appears to me that tracking the allocations wold be a nightmare. If Capt Schmuckatelli pays as a lifer in a cheap wing, and then moves to CAWG, what happens to the funding? How do you strike an equitable average?

[FlyTiger77]

...Something else I heard was that "like 12 people actually used it"...

Wow, I am in elite company!

My 3-year membership renewal expires near the end of this year. I liked the option.

[Al Sayre]

Me too, I jumped on it just before they stopped.

[a2capt]

My last 3 year one ran out in 2012. I would have liked to have sent in more loot before it did. But as soon as they started offering multi-year I used it twice. Got in at the beginning, and the next renewal, after that it disolved during my last year.

[coudano]

Isn't there also the obvious question about termination?

What happens when I shell out my $1200 and then 2 years later CAP terminates my membership.

[FW]

Isn't there also the obvious question about termination?

What happens when I shell out my $1200 and then 2 years later CAP terminates my membership.

At the last meeting I attended as a member of the CAP Foundation, I suggested the option of offering Sustaining Life Memberships for a donation of $2000. The foundation would have paid your national dues ($35) for as long as you were a member.  If you (or CAP) decided to terminate the membership, the foundation would have stopped paying your dues and use the money for other purposes.  It would not be an issue. :angel:

[MSG Mac]

Isn't there also the obvious question about termination?

What happens when I shell out my $1200 and then 2 years later CAP terminates my membership.

If terminated for cause, you would lose your deposit, because there is always the rider that says as long as you're a member in good standing. If you've taken an ACSC test for someone else,awarded yourself the Medal of Valor, or cashed checks made out to the unit at the local package store. You are in violation of laws and CAP regs, you are not a member in good standing and have forfeited the fee.

[Brad]

If terminated for cause, you would lose your deposit, because there is always the rider that says as long as you're a member in good standing. If you've taken an ACSC test for someone else,awarded yourself the Medal of Valor, or cashed checks made out to the unit at the local package store. You are in violation of laws and CAP regs, you are not a member in good standing and have forfeited the fee.

Oh I see what you did there....

[Eclipse]

I don't see what the advantage to CAP is.

The number of members inclined to something like this would be so small, the administrative costs and headache are likely to exceed any
small benefit.

If CAP were an organization that actually depended on dues for its existence, then there would be a discussion point, however
that's not the case.  Membership dues are the equivalent to the tuck-pointing on a brick house in terms of the budget.

Annual dues (major WAG with no accounting for different membership categories, variable wing costs, etc.):
Seniors: $2.5M (@ $75 per anum)
Cadets: $ 1.9M (@ $35 per anum)
Total: $ 4.4M

Now presumably this would not be offered to cadets, so if you assume 10% of the seniors opted for this option, and factoring a lot of wings
are less then the $75 I used, you probably wind up with a floating fund of about $200, 000.  If you got 3% annually on that, that $6000 - hardly
worth the effort for a national organization.  And yo have to factor the $6000 against the loss of the full-cost renewals by those
who outlive the value of their lifetime membership (that's a lot of people these days).

CAP essentially becomes a life-insurance carrier where it's betting the member dies before he "out spends" the money he's already paid.

Not to mention that you also have to capture the member fairly early, otherwise there's going to be decreasing value as they get older.
I've been in the AMA for nearly 25 years.  As a lobbying organization, their total revenue is nearly 100% membership dues, and their
life memberships are not priced on a sliding scale.  Had I joined as a life member when I was in my 20's, it would have been a pretty good deal,
but not likely when $5 for gas for the bike was a stretch sometimes.  Now it would just be a benevolent donation of $1000(ish), to no
personal advantage, especially when you consider I hit Charter Life at 25 years.

In the CAP paradigm, I really don't see the advantage to anyone here, but a lot of pitfalls.

The one place that might help is "sunk cost".  People who pay $1000 to join anything are going to be inclined to want to make it better and
put in the effort necessary. 

However "sunk cost" has the disadvantage of an undeserved feeling of "ownership", coupled with a "I paid $1000 for this?" attitude.

[Private Investigator]

I too was 'one of 12' that had a three year membership.

Being in an elite group all I can say about the 'one year membership' types, "let them eat cake!"   

[Eclipse]

I had a three-year renewal as well.  Meh.

At the time the photo card was optional, so promotions that crossed that period forced members to purchase updated IDs,
as NHQ only sent the non-photo versions.

Not exactly, the end of the world, but one more thing to have to deal with (at the time).