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The
"nice idea" is
suddenly seen
in another light.
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All
associations face the challenge of generating revenue.
Revenue is generated from a number of sources, and typically
dues are but one of the myriad options in terms of ways that
associations support themselves.
A large portion of
associations derive most of their income from sources other
than dues, and in this respect AMA is unusual. AMA derives
the majority of its income from membership dues, but we are
working to develop alternate sources of income in order to
keep the dues amounts in check. It's interesting to see how
the membership reacts to some of these attempts.
We recently
sent out an E-mail promoting one of our "affinity" programs
(a credit card that returns income to AMA), and within hours
I received E-mails from members who were irate that AMA
would do such a thing. That program generates more income
for AMA than a $1 dues increase would, and that is $1 each
member doesn't have to pay in dues.
We occasionally charge
admission to the National Flying Site in Muncie, Indiana,
for special events and that brings about some grumbling.
"Why should the members have to pay to get into 'their'
site?"
On the surface that is a valid reaction, but
operating the site and putting on some of those events
involve costs that are more appropriately borne by the
people who attend the events rather than by the membership
as a whole through dues.
Overnight parking of recreational
vehicles with electrical hookups, availability of water, and
a dump facility are other services for which we charge.
Again, some complain about the existence of a charge or the
amount of the fee.
The idea is to try to recover costs and
generate income for the association without increasing dues.
I can assure you that the officers and the staff do the best
they can possibly do to be equitable in establishing any
fees as well as the amount of dues.
For as long as I can
remember, AMA has had a discount of $10 on dues for seniors
and that is not going to change in the immediate future, but
a recent discussion of what this "costs" us is revealing.
As
the number of senior citizens grows—and it is our
fastest-growing age category—the cost to the rest of the
membership rises. A $10 discount for seniors is a nice idea,
but that age group accounts for nearly a quarter of AMA's
membership.
The need to offset the loss of income the
discount represents results in the rest of the membership
paying $3 more in dues. The "nice idea" is suddenly seen in
another light.
As Sir Isaac Newton first observed, every
action results in an equal reaction, equal in force, but in
the opposite direction. Perhaps he was thinking of physics
and bodies in motion, but it surely applies to the economics
of running an association. Every time you give something
away to a member, you must charge the rest of the members
more to balance the equation.
Think about this the next time
you are faced with an opportunity to help support the AMA
through any of the non-dues revenue programs we operate. AMA
is one of the best values in the world in terms of what you
receive for what it costs you. We all want to keep it that
way. Fly safely and enjoy.
Fly safely and enjoy. MA
Dave Brown, AMA president
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