Frequently Asked Questions (FAQ) About Dues

 

Q: What is the new 2007 dues structure?

A: Standard rate: $92 Members eligible for student and senior rates: $46

 

Q. When did the new dues structure go into effect?

A: On January 1, 2006 a two-step increase was approved by the Board for the 2006 budget. This is the second step.

 

Q: Do we have to pay our dues all in one payment?

A: As with most organizations, we do pay our dues one full year in advance. Once you have paid the first years dues, monthly payments may be made using the Autodraft or EasyDues plans. This changes the Society portion of your payments to $7.67 per month for regular members and $3.83 per month for Student and Senior Members.

 

Q: Can our Chapter and District dues be paid monthly?

A: Absolutely. Your dues monies are collected by the Society. Your Chapter and District are then returned to the Chapters and District on a monthly basis.

 

Q: Why have dues increased?

A:  To ensure that members receive the information they need when they need it, the Society continues to invest in new web-based and electronic delivery systems. In addition to web-based information delivery systems, production costs to produce and deliver The Harmonizer have increased steadily over the years.  This $1.75 per member allocation established over 20 years ago has not covered the cost of the magazine for many years. This two-step dues increase now allows the Society to cover these costs.

 

Q. Didn’t the Society just raise dues?

A: Yes. In the past 17 years Society dues for regular members have risen from $50 (1990) to $92 (2007), a $42 increase. This is an average of $2.47 per year. For members qualifying to a discounted student and senior rate the increase has been from $25 to $46, a $21 increase for an average of $1.24 per year.

Q: Who approves a dues increase?
A:
The Barbershop Harmony Society’s Board of Directors must approve a dues increase.

Q: What has the Society done to reduce costs?

A: In 2004 & 2005 the Board of Directors and Headquarters staff initiated the following actions to reduce costs:

·         reduced staff positions – a net reduction in 10 staff members since July of 2004.

·         improved invoice and accounts payable processing;

·         sought to increase non-dues revenue opportunities

·         eliminated excess over-printing of publications;

·         created and implemented new Executive Limitations Policy which includes the prohibition of the CEO from any deficit spending, effective in 2006.

 


 

In addition, the Society Headquarters staff made the following contributions that affect them personally to reduce costs and reduce deficits:

·         reduced staff travel expenses;

·         accepted additional duties due to reductions in staff.

 

Q: Where does my money go?

A: You dues go toward providing the following;


 

Q: Do the dues cover the cost to serve?
A: No. The cost to serve a member exceeds the amount of dues paid by any membership category. Dues for 2007 will be $92; while the projected cost to serve is $97. To provide the dues-supported programs and services, the dues of all members are subsidized by non-dues revenue activities associated with Events (hosting the International Convention) and Harmony Marketplace Merchandising operations.

 

Q: What is included in the current cost-to-serve dollar figure of $97.05?

A: The $97.05 includes the costs for materials related to Society publications provided as part of the dues paid by members, the programs and services provided for members, which includes salaries and benefits for headquarters staff to provide programs and services for members, and a portion of the overhead to conduct Society business and maintain the Society headquarters office. The following chart contains a breakdown of the cost to serve.

 

ITEM/DESCRIPTION

TOTAL PER MEMBER

PERCENTAGE OF TOTAL

SALARIES & BENEFITS

$49.52

51%

PROGRAMS AND SERVICES: includes Publications, Web Site, magazine and electronic newsletters, Marketing and Public Relations, Music Education, Chapter Development and Membership, Events, Harmony Marketplace Merchandising operations, Professional Development, Finance, etc.

$27.32

28%

GOVERNANCE

$14.89

15%

OVERHEAD: Credit Card Fees, Data Processing, Depreciation, Equipment Repair, Equipment Purchase, Insurance, Legal & Accounting, Repairs & Maintenance, Rent, Licenses, and Telephone/Telecommunications)

$5.32

5%

TOTAL PER MEMBER

$97.05

100%

Q: Can you explain the discrepancy between actual dues and the cost to serve?
A: The dues paid by members do not provide the revenue to provide the programs and services requested by members.

 

2003

2004

2005

Dues: Actual

$1,940,520

$1,957,113

$2,041,571

Cost to Serve:

$2,911,095

$2,919,183

$3,165,571

Deficit:

$970,575

$962,070

$1,124,000

Q. What is being done to increase the Society’s ability to serve its members?
A: In addition to
a new IT/database management system, two new music specialists and a new full-time Director of Membership have been hired in recent months. On January 1, 2007, a new Assistant Director of Membership will be joining the staff.

Q. Can we raise the funds we need through other sources?
A: Dues are the most reliable source of income for any association, but dues make up less than 37 percent of the Society’s operating revenue. For every dollar generated by the Society, 63 cents comes from non-dues sources like conventions and merchandising as well as revenue received through an affinity marketing agreement between the Society and Bank of America (formerly MBNA America). Additional affinity agreements and corporate sponsor opportunities are being explored.


 


 

Q: Does the Society have any reserves?
A: Yes. The Society has approximately 2 ˝   million dollars in the new building fund from the proceeds of the sale of Harmony Hall and the Sheridan Road facility which we now currently rent. These proceeds are being utilized to subsidize the costs related to acquisition of a new headquarters facility in Nashville, renovation of that facility and the relocation of staff, materials and equipment. The moved is currently scheduled to take place in August of 2007.

 

Q. What were the dues paid by members from 2002-2005?

A: The dues paid by senior and student members from 2002-2005 were:

 

 

2002

2003

2004

2005

Dues: Standard

$72.00

$76.00

$78.00

$82.00

Dues: Seniors

$36.00

$38.00

$39.00

$41.00

Dues: Students

$36.00

$38.00

$39.00

$41.00

Cost to Serve

$84.01

$92.98

$94.47

$97.05

 

Q: What revenues were generated by the by dues from 2002-2005?

A: The revenues generated by dues from senior and student members* from 2002-2005 were:

 

 

2002

2003

2004

2005

Dues: Standard

$1,563,643

$1,648,528

$1,657,632

$1,713,571

Dues: Seniors

$266,040

$260,376

$266,019

$287,000

Dues: Students

$32,400

$31,616

$33,462

$41,000

Total dues paid:

$1,862,083

$1,940,520

$1,957,113

$2,041,571

Cost to Serve

$2,685,496

$2,911,095

$2,919,183

$2,998,737


*Senior and student members pay only 50% of the dues paid by regular members. Both of these reduced dues categories are substantially subsidized by members who pay dues in the standard category.

 

Q: How do Barbershop Harmony Society dues compare with other organizations?

A: The following chart contains last known dues levels for other individual membership organizations:

 

ASSOCIATION

REGULAR

SENIOR / RETIRED

STUDENT

Barbershop Harmony Society

 

 

 

$120* z

Breakdown

Society dues: $92

District dues: $18

Chapter dues: $15

 

*Chapter and district dues vary dramatically 

 

$60 z

$60 z

Sweet Adelines International

$215 SAI

N/A

 N/A

Chorus America*

 

Average $100.15

Median $100.00

Min $20.00

Max $300.00

 

N/A

N/A


 

 

Rotary International

 

$35 Annual Rotary International dues

 

$25-$50 Avg. Rotary District Dues

 

plus…

$400-$1000 annually for club dues

 

N/A

N/A

Kiwanis

 

$61.90 Annual Kiwanis International dues

 

$25 approximate annual cost for Kiwanis District dues, plus annual Club dues which vary widely

 

Total annual costs for International, District and Club dues can range from $80 to $360 per year

 

N/A

N/A

Lions Club

 

$39.00 annually, plus district and club dues which vary widely

 

N/A

N/A

 

N/A – Not known or not available

Z - Average total dues including District and Chapter dues

SAI - the average annual cost from a random sampling of ten SAI chapter websites

* From a survey of 207 choral organizations from the 2003-2004 season