Budget and Finance Committee Public Forum
Group to allow the Brotherhood to ask questions and receive information directly from the Budget and Finance Committee.
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Thoughts on increasing Undergraduate Chapter dues from $400 to $550?
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Thoughts on increasing Undergraduate Chapter dues from $400 to $550?
Currently, Undergraduates do not pay any individual dues and the cost of running our Fraternity is increasing. We saw an increase in dues paid from the Undergraduates when we eliminated the individual dues and increased the chapter fee.
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18 Replies
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Agree that the costs are increasing. It’s hard for these smaller undergrad chapters to absorb all of the costs from dues, regionals, conclave, and campus expenses. They don’t raise money like we used to. I’m not sure they can afford it. I would rather have a slight increase to the grad chapter dues to help offset the undergrads.
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Would it help in some sense to raise the chapter fees, sure, but to what degree?
I am with you Bro. Jefferson, and I am going off the rails, but I believe from a graduate chapter we should have a more vested interest in ensuring the fiscal strength of our ug chapters including as you stated fundraising, and also grant writing, sponsorships, etc.
I look at it this way, we have chapters where such an increase can cripple that chapter, so that leads us to a host of other “issues” including effective chapter management, lack of interest groups, ineffective or non-existent planning, inconsistent advising by grad chapters, and importantly, being upfront with potentials about the required monies!
I now consider all of these things as I am working to reactivate EP at the University of Nebraska.
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I agree however, we are getting some push back from the Life Members and Alumni. Life members do not want to pay additional funds other than LM maintenance fee. Alumni are carrying the weight of the Fraternity and watching the UGs receive the benefit of membership which is starting to run them the wrong way. So increasing the chapter fee would become a hike for some UG chapters but I believe if we continue to work with those UG chapters, their alumni, and their supervising Grad Chapter, the $550 would show up.
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Which is crap. That little maintenance fee ain’t ish. Even though they are life members their fee needs to increase. A lot of them became life members when it was little to nothing to be come one.
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I agree with both Bro. Jefferson and Bro. Madison. Let’s look at other avenues to help. I also think if we add an assessment like we did to prepare for the 50th for a short period of time can also help.
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How much of an financial impact would it be we eliminated the initial individual intake dues for undergrad (for a short period of time) and have them collectively come up with Chapters dues? We see that the initial individual intake cost can be a handicap for some undergraduate chapter which slows them down from bringing in new members. If we implemented (for a short period of time) one set intake cost for the entire intake line to split could potentially help bring in revenue from undergraduate chapters that are having a hard time bringing in brothers based on a financial reason
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We already eliminated the individual fee for UGs and we saw more funds come from the UG level. Our liability insurance is increasing and we don’t want to tax the Life Members and Alumni brothers too much to the point we start losing our financial base due to prices.
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When you say eliminated are referring to there individual member dues? (Once they become a brother) I’m speaking in regards to there upfront intake fees
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Yes. Once UG’s cross into the organization, we eliminated their individual membership fee. UGs only have to pay $400 for the chapter fee and all registered UGs are financial nationally.
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Truth is that many Life Members joined when it was like $500 and only pay $55 a year. That’s like free at this point. I know changes are coming and I am not saying anything against Life Members as I am about to submit my LM package as well. I think most would agree to some change about that $55. We are adults and have income where the UGs do not. Also many UG chapters don’t have a viable Grad chapter to help them or the UG doesn’t have a relationship with them.
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Can we get a reclamation drive, maybe allow a monthly or quarterly payment?
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We are working with our database developers on that payment plan feature.
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Chapters can use Crowded to receive payments throughout the year and pay its members dues at the end of the year.
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Not a bad proposal/thought and something to truly consider. However, the timing may not be right if there are other options and approach to consider before hiking tax.
One option could be instead of increasing cost of good standing, use past 2-5 (go as far back as before covid) and analyze our fraternal cost. We may be able to cut cost in certain areas that we may overlook. Using the annual budget and actual year end cost, we can take an approach where unused budget cap gets transfered into another line item or eliminated.
Another option can be maintain the same chapter due amount but increase the tangible benefit for chapters that pays it. One could be including a waived registration to the next national meeting for the 2 delegates per chapter that pays the dues. They a lot more changes that need to be done in other areas to make this work (too much to type the full place and approach) but by doing this, you can increase the number of chapters that pays the dues since they can actually touch/experience a reason to pay. Add this option to the 1st one, you increase incoming revenue while cutting down cost/expenses.
Maybe consider tying down chapter due cost to chapter growth. A chapter with more members pay less (sounds backwards but could help). Establish buckets like chapters with 1-3, 4-7, 7+ (use current data to establish our average and then do 1 under and 1 over bucket). This will hopefully give chapters incentives to cross more and from that revenue, will help offset cost for what is “lost” from reducing chapter dues. More members is also better than more chapters at this point of the organization.
More options but this question to me need to taken into a war room and a working session of different fraternity members and some with past leadership experience from different era.
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I am totally against any increase. Instead of focusing on our failure of not properly supporting and increasing our undergrad members over the years, we now want to Tax more to make up the difference. How about we focus more on actually fixing the problem by bringing in more paying members through real outreach campaigns.
As for LMs, what is the point of having something g called a “LIFE” anything then charging a fake yearly assessment or each administration increasing the assessment to make up for piss poor management over the years. You can’t double dip bros. We will lose those folks from paying and that’s money we need. Plus life members give a lot to the frat in other ways. We need to stop putting bandaids on the problem.
Cut staffing and travel costs, come up with a real sign and drive membership drive to increase members, make it easier to make life members and invest that money as it comes in., and hold REAL money generating events that bros actually want to attend. Right now our upcoming clave leaves a lot to be desired for bros to use their work vacation to attend.
These are all things we can do NOW to help us grow financially. Raising anything is NOT the solution.
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That’s similar to my sentiment. Increasing chapter dues for UGs does not make good business logic especially if there are other things we can do to help with the problem. Increasing it will only create more friction which is what we need to stay away from at this point.
That’s why my response was to take a different approach and be practical with the ideas to help shift the balance a bit.
I’m with you on the LM stuff too. Different topic from this thread but hopefully you’ve had the chance to go through the new policy update for LM and provide your thought officially to the BOD Rep .
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I can agree with this because the undergrad annual dues have been eliminated. Is there a discussion to be had around chapters with low membership, yes. But if the chapter thrives raising these funds is feasible. But again I think we need a better understanding of dues imposed on all are chapters in regards to regional and local Panhellenic dues as well.
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Good Morning,
I have to agree with many of the brothers. I think that it would cripple the organization. Nationally we are struggling with our Undergraduates. To increase the Chapter Dues would only add to our issue. What are other suggestions that we can do to offset this issue? Again we are not trying to futher our issue.
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