Paid life members

[RiverAux]

Quite a few organizations out there have an option to pay a large one-time fee to become "life members" of the organization.  Would this be something that it would be worth CAP looking into? 

Just as an easy example, the NRA has a $1,000 life membership that can be paid as a lump sum or as 40 quarterly payments of $25 each.  They also have a "distinguished life membership" for those over 65 or who are a disabled veteran that costs $375 (or 15 payments of $25). 

Obviously you would want to make the deal good enough that people would see the value but not so good for the member that the life membership ends up costing the organization a ton of money down the road, so I might lean towards making it available to those over 60 or 65. 

[IceNine]

the problem is a lot of wings/regions rely on these annual payments to operate. It may be a decent idea for NHQ membership but I think it would really hurt every other echelon

[Eeyore]

What if the life membership offered differed by wing/region as the current membership dues do? The wing/region would get a portion of it as well.

[Eclipse]

What's the advantage to CAP? (or even the member)

Very little of the operating budget comes from member dues, unlike the NRA or other organizations that live or die by dues and need every cent they can get up front for operating expense.

You'd also have to deal with members suing for their money back if they get terminated for cause or decide to quit before they die.

[Cecil DP]

The idea is that if I paid $1000 to National for "Life" membership the thousand dollars could be put into CD or other interest bearing bonds. The interest would pay any annual dues and the initial amount plus any extra is reinvested into the bond. If someone dies the money still stays with CAP because the "Life" membership was fulfilled. If someone was kicked out for cause, they wouldn't get money back because they didn't meet membership standards.
This was actually approved by the NEC in 1991 and promptly disappeared  for the same reasons voiced in other posts about having to kick someone out.

This is actually a win/win for CAP. (Much better than the 6+millions lost on the race car venture).

[citizensoldier]

I for one would opt for it if available.

[FW]

There is nothing keeping us from offering paid "Life Memberships".  

However, for it to work, the "Life Membership" fee would be considered a donation.  A member who was "2B'd" or quit would not be entitled to receive a refund.  Also, it would  not exempt a member from Wing Dues.

What's the advantage to CAP? (or even the member)

Very little of the operating budget comes from member dues, unlike the NRA or other organizations that live or die by dues and need every cent they can get up front for operating expense.

Actually, our "corporate budget" funds everything the "appropriated budget" doesn't.  Things like the school program, capital improvements to NESA, HMRS and BB, the Annual summer CAP conference and a host of other programs and scholarships for cadets and senior members.
If enough members opted for a paid "Life Membership", it would definitely help our programs and, add to our endowment.

For the individual member, they would get a 1 time tax deduction of $1k and wouldn't pay national dues ever again.  

It would be up to the NB to allow it.  

[RiverAux]

Its hard for us to say what sort of financial impact (either pro or con) this would have upon CAP since we don't make the entire NHQ budget public -- just the congressionally appropriated funds are in the annual reports to congress.  But CP has it about right in that interest off that money would just about cover the value of their annual dues and after they die we would still be getting that interest.

Given the relatively small numbers of CAP members overall who get kicked out and the liklihood that the number of members who would get kicked out who are also life members would be miniscule, surely a way could be found to deal with it.  I'm sure other organizations have addresed the same issue.  Heck, we could still give them their entire 1,000 back and the organization wouldn't really be out any money. 

[IceNine]

So then we still have to collect unit/wing/region dues? or does that money get distributed by the interest revenue?

[RiverAux]

It would probably be best to try to cover both National and Wing dues and that should be doable based on what price you charge for the life membership.  It would need to be a bit higher if it went beyond just national dues. However, it could go either way. 

[RiverAux]

Although you can't find it on the CAP web page, you can find at least the last few annual tax returns for all of CAP at Guidestar.  The latest one indicated that CAP gets about 1.6-1.7 million a year from membership dues. 

Just as a note, some of the top CAP employees are making decent money for Alabama. 

[Cecil DP]

It would probably be best to try to cover both National and Wing dues and that should be doable based on what price you charge for the life membership.  It would need to be a bit higher if it went beyond just national dues. However, it could go either way. 

Most organizations base it on age and annual dues. When it was first approved by the NEC in May1991. The flat rate was $1000. And according to the CAP News they did have a some members at the NEC meeting sign up.

[SarDragon]

Here are the life membership dues for another organization I belong to.

The regular annual dues are $52.

0 - 9	-	$1482
10 - 14	-	$1452
15 - 19	-	$1415
20 - 24	-	$1371
25 - 29	-	$1318
30 - 34	-	$1255
35 - 39	-	$1182
40 - 44	-	$1101
45 - 49	-	$1011
50 - 54	-	$915
55 - 59	-	$813
60 - 64	-	$708
65 - 69	-	$587
70 - 74	-	$502
75 - 79	-	$407
80 - 84	-	$320

Please contact the National Office for current ages 85 or greater.

[Cecil DP]

If you want to see Paid Life membership program started. Contact your Wing Commanders so that it can be put on the agenda for the Winter Board meeting in February. I think if enough people say they will sign up if offered, they will put the program into effect.

[AlphaSigOU]

The idea is that if I paid $1000 to National for "Life" membership the thousand dollars could be put into CD or other interest bearing bonds. The interest would pay any annual dues and the initial amount plus any extra is reinvested into the bond. If someone dies the money still stays with CAP because the "Life" membership was fulfilled. If someone was kicked out for cause, they wouldn't get money back because they didn't meet membership standards.
This was actually approved by the NEC in 1991 and promptly disappeared  for the same reasons voiced in other posts about having to kick someone out.

This is actually a win/win for CAP. (Much better than the 6+millions lost on the race car venture).

I agree. As one who already holds a perpetual membership in a Masonic lodge (Will Rogers #53, Claremore, Oklahoma) it's an excellent investment. As long as I'm not suspended or expelled, my membership continues for life and then some...

I would propose the following restrictions be added to a possible life/endowed/perpetual membership in CAP:

1. Open to both cadets and seniors who have at least two years of active membership in CAP. I don't have a problem with anyone joining up with a life membership straight out, but it enables us to be sure that the member is making an active contribution to the CAP mission and any background checks are completed.

2. Payment either by lump sum or payment plan, when the payment plan is completed, life membership is granted.

I would rather see the 'life membership' category changed to read 'endowed' or 'perpetual'. Leave the life membership category as is to honor outstanding performance and very long service to CAP.

[MSgt Van]

What would happen in the event a "life" member was 2b'd out of the organization?

[FW]

^ It would depend on how the system was set up.  It would be the National Board's call. 

[Pylon]

What would happen in the event a "life" member was 2b'd out of the organization?

You'd have to make that very clear in the membership agreement the potential life member would sign.  I'd say the best course of action is that the terminated member gets nothing back.  By virtue of being terminated, the member broke the membership contract, not CAP - CAP would have continued to give them membership had they not given up their right to it.

[KyCAP]

From an income tax perspective, the member and the organization should make it clear that the "membership" for life is the reward of a "gift".   And that membership is revocable or something along those lines for various reasons.   Otherwise, the donor and recipient is going to have to also account for income returned to the them from the organization that they previously claimed as a "donation" and received the benefit of based on their income taxes in x,y,z year... Sounds like a real pain if not spelled our up front... this is a donation and if we decided to not get along then you still get the tax benefit, but not the membership benefits....you can't "request your donation back"...   Like others say... model similarly to other programs.



AOPA Life Member Program

$2,500 one-time gift. The AOPA Life Member Program, offered exclusively by the AOPA Air Safety Foundation, is available for a one-time donation of $2,500. Enrollment in the Life Member Program can also be given as a unique and lasting gift to that special aviator. Of the total donation, $2,000 is tax-deductible.

New Life Members receive a special lapel pin and personalized membership card. In addition, Life Members may proudly display a framed AOPA Life Member certificate signed personally by AOPA President Phil Boyer and AOPA Air Safety Foundation Executive Director, Bruce Landsberg. AOPA Life Members are also recognized in the AOPA Air Safety Foundation's annual Safety and Philanthropy Report. Join now!

http://www.aopa.org/asf/development/#life

[FW]

KYCAP makes an excellent point.  And, I just realized we can do the same type of thing AOPA does.  Now that the CAP Foundation is incorporated as a 501c3 not for profit, the Foundation may at some point offer a CAP life membership for those that donate a certain amount to the foundation.  What a good idea.  I'm sure it will be brought up at the next Foundation board meeting.