CMAA National Headquarters
Alexandria, VAHello CMAA Members! I want to share my thoughts on member dues, specifically CMAA National dues. I know your clubs have seen costs rise with the dramatic jump in inflation. I suspect the vast majority of you have already implemented or are contemplating member dues increases. Last month the CMAA Board of Directors met, and one important area of focus was the FY2023 budget, which begins November 1, 2022. CMAA 2023 membership renewals were mailed earlier this month and, as you likely noted, Professional membership dues increased by $25 or about 3 percent.
There was a great deal of thought put into that decision that I would like to share. First, let us explore CMAA’s dues history for the past 20 years. From 2000 through 2011, CMAA raised member dues at a pace that far exceeded the inflation rate. Dues were raised more than 60 percent, while inflation over that period increased less than 30 percent.
When I became the CEO in 2014, one of my first areas of analysis was to examine membership dues as a source to help ease some of the financial distress CMAA had endured for years, particularly during those high dues increases. It was clear to me that dues increases were off the table until historical inflation and our CMAA National dues evened out.
As part of every budget discussion, the Board has considered dues increases for the past eight years. However, thanks to good fiscal management and positive operating results, the Board agreed with the logic of maintaining the prevailing dues rate, which has remained constant from 2012 through 2022, or the last 10 years.
The historical rate of inflation since 2000 is now slightly ahead of our dues rate, so it is time to raise dues on a more methodical pace. This year, as part of our budget development exercise, the Board examined all our revenue sources and looked at the associated expenses to ensure our programs were in sync with our current reality of rising costs. In the end, we noted that for CMAA to operate with a reasonable bottom line we need a modest dues increase. As such, the CMAA Board approved a $25 increase for Professional membership for 2023, or the first dues increase since 2012.
Some of you might say we should do more. But as I look at member equity on our financial statement, I see a positive number. Member equity on our balance sheet in 2016 was approximately negative two million dollars. Yes, we were in a big hole. This year our member equity turns positive, and we are building reserves for a rainy day or to pay off our headquarters’ mortgage at the end of our new 10-year note.
None of us has a crystal ball to know exactly what the future holds but rest assured that solid management by the CMAA National Headquarters team coupled with sound oversight by the CMAA Board has placed us in a very healthy situation. It is just one more reason I am proud to be your CEO – terrific Board partnership and an awesome staff team. Thanks for being a CMAA member and I want to personally ask you to promptly pay your 2023 dues as it helps us to keep costs down.
Until next month,
Jeff