INTEROFFICE MEMORANDUM

Transcription

1 INTEROFFICE MEMORANDUM DATE: June 12, 2017 TO: Chapter Leaders Elise McMillan, Board President FROM: Peter Berns, Chief Executive Officer SUBJECT: Input about potential dues in 2018 We need your input. The Arc is considering implementing an across the board dues in 2018 for all state and local chapters. However, we don t want to proceed without first checking with you, our chapter leaders, about whether you are ready, willing and able to make a modest in your chapter s investment in your national headquarters. The state and local affiliate dues have not been d in seven (7) years. The last dues change was decided in 2006 and phased in over five years, from 2007 to The dues schedule this year (2017) is the same as it was in Since then, we have dramatically expanded and improved the programs, services and supports that we provide to support your chapter and the people with intellectual and developmental disabilities we serve. Partnering with you, among the changes and improvements we ve made are the following: We developed a ten-year Strategic Framework for the Future of The Arc, , and have been implementing it faithfully, doing what you said you wanted to see us do for the future of the organization We developed and implemented The Arc s new logo and brand identity. We strengthened The Arc s federal public policy advocacy, grassroots and online organizing and mobilization to preserve eligibility and funding for the Medicaid, Social Security disability insurance, and SSI programs, which serve people with I/DD and their families and fuel the operation of our chapters. While playing a largely defensive game in recent years with the Don t Cut Our Lifeline campaign, our public policy team working with you scored victories, including enactment of: o The Affordable Care Act o The ABLE Act

2 Page 2 o Rosa s Law o The Matthew Shepard & James Byrd Jr. Hate Crimes Prevention Act We established a visible presence for The Arc in the autism community, with AutismNow, our National Autism Resource and Information Center and the Wings for Autism program. We strengthened The Arc s media relations, traditional and online communications capacity, including establishing a robust online presence. We regularly kept chapter leaders and our constituents informed through an expanding array of electronic and print publications, including our chapter leader enewsletter, Fusion, as well as through our print newsletter, Empower, the general enewsletter, our public policy enewsletter, Capitol Insider, and in-depth public policy publications, National Policy Matters and State Policy Matters. We established The Arc s presence, once again, as an authoritative source of information about people with I/DD and their families through our FINDS survey. We provided chapters marketing and communications resources, such as our image/picture library, newsletter and publications templates and Developmental Disabilities Month and other public relations toolkits. We created multiple public service announcements and obtained more than $4 million in free airtime from Comcast NBC Universal, spreading the word about The Arc. We build relationships with national companies, federal government agencies, and private foundations, securing funding which we use to provide sub-grants to chapters and creating resources for use by our chapters, as well as the individuals and family members you serve. We organized chapters to work collaboratively on program initiatives that address the support needs of people with IDD, such as The Arc & Walmart Foundation School to Community Transition Project, HealthMeet, Tech Toolbox, TheArc@Work, the Center for Future Planning, the FASD Prevention Project, the National Center for Criminal Justice and Disability, the Martin Luther King Day of Service project, and TheArc@School. Based on your input, we ramped up the quality of our major annual events the Disability Policy Seminar, the NCE Summer Leadership Institute, and the National Convention while keeping them as affordable as ever. Working along with state and local executives, we brought NCE into The Arc and expanded its program offerings to include the Standards for Excellence portfolio of resources on board governance and management, The Arc Connection portal of educational webinars and videos, special interest groups, and a revamped Fall Professional Development Seminar.

3 Page 3 We developed a new Diversity Strategic Action Plan to support the national organization, as well as state and local chapters, to become more diverse culturally competent nonprofits. We built a turn-key vehicle donation program, allowing chapters to benefit from donations with no hassle and no work. We provided chapters access to a new Chapter Web Service, an expanded Membership Renewal Service, discounts on fundraising software (Crescendo, WealthEngine), advocacy software (CapWiz/Engage), and an extensive group purchasing program, purchasing point. Recently, we created a Directory of Benefits, Services and Discounts for Chapters. We encourage you to review it carefully and take advantage of all your national office has to offer. And there is more to come! We hope we have convinced you that your national headquarters is and will continue to be committed to the success of your state or local chapter of The Arc and that you will agree that a modest dues is worth your investment. How much are we talking about? The Arc s new Bylaws (which chapters adopted in 2012, effective in 2013) provide that the Board of Directors may implement an across the board dues by a percent that may not exceed the percent in the Producer Price Index plus 3%, compounded annually. As depicted in Table 4 in the Appendix, that means that any approved by the Board may not exceed 28.9%. But don t worry, we are NOT considering an of that magnitude. Rather, what we are hoping to do is achieve an amount that will allow us to continue to provide the level and quality of services you have come to expect from your national office, and to manage the in the costs of doing business. To provide context, in 2008 dues accounted for 58% of the operating revenue of the national office. In 2016, chapter dues accounted for only 27% of annual revenue. Table 1 in the Appendix illustrates the amount of additional revenue that would be generated to support the national operation at different levels. Tables 2 and 3 illustrate what would be the new dues amounts for local and state chapters, respectively, at different levels. Why are we contacting you and what happens next? Participatory Democracy is one of the Guiding Principles that define how The Arc does business, so we wouldn t want to proceed with a dues without hearing from you. In fact, this principle is enshrined in The Arc s Bylaws in many areas. As it relates to dues, under the Bylaws the Board must provide chapters ninety (90) days notice and an opportunity to provide input

4 Page 4 before the Board votes on an across the Board ; and the Board must notify chapters of any at least ninety (90) days in advance of the dues year to which they will apply. In making its decision, the Board must take into account the needs of the Corporation, changes in the cost of doing business as measured by the Producer Price Index for Total Traditional Service Industries published by the United States Department of Commerce, Bureau of Labor Statistics, or similar authoritative source, and the financial climate in which Chapters of The Arc are operating. A vote of chapters is only required where the Board proposes to change the dues methodology or to implement an that exceeds the allowed percentage described above. We plan to spend the summer gathering input from you, our chapter leaders, through a survey, comments by , a listening session at the NCE Summer Leadership Institute and The Arc US Board meeting in July. The Board will take up the topic at a special meeting to be convened in the second half of September and chapters will be notified of the outcome on or before October 1 st. If an is approved, which is by no means a foregone conclusion, it will go into effect for the year beginning January 1, So please, let us hear from you. The Arc s Board of Directors would like your input about whether you feel you are getting value from the affiliate dues you pay to national, whether you feel a dues is feasible for your chapter, and what level of is manageable? We would also like to know whether you think it would be preferable to annually adjust the dues (up or down) automatically based on the PPI (or other index), rather than waiting to do so at longer intervals (e.g. every 4-7 years)? Please use this link to access a SurveyMonkey form to provide your chapter s input. Proceed to Survey Thank you.

5 Page 5 APPENDIX Table 1 Impact on Revenue Realized by Increase Percent Increase Percent Net Change Total Dues None $2,539,463 $0 8.2% $2,747,699 $208,236 10% $2,793,409 $253,946 15% $2,920,382 $380,919 20% $3,047,356 $507,893 25% $3,174,329 $634, % $3,273,368 $733,905 Table 2 Impact on Local Chapter Dues Amounts by Increase Percent Tier (total revenue) Dues Schedule 8.2% 10.0% 15.0% 20.0% 25.0% 28.9% < $50,000 $350 $379 $385 $403 $420 $438 $451 $50,000 - $100,000 $500 $541 $550 $575 $600 $625 $645 $100,000 - $175,000 $750 $812 $825 $863 $900 $938 $967 $175,000 - $300,000 $1,100 $1,190 $1,210 $1,265 $1,320 $1,375 $1,418 $300,000 - $500,000 $1,500 $1,623 $1,650 $1,725 $1,800 $1,875 $1,934 $500,000 - $750,000 $2,000 $2,164 $2,200 $2,300 $2,400 $2,500 $2,578 $750,000 - $1.2 mil $2,600 $2,813 $2,860 $2,990 $3,120 $3,250 $3,351 $1.2 mil - $1.8 mil $3,200 $3,462 $3,520 $3,680 $3,840 $4,000 $4,125 $1.8 mil - $2.5 mil $4,000 $4,328 $4,400 $4,600 $4,800 $5,000 $5,156 $2.5 mil - $3.5 mil $4,800 $5,194 $5,280 $5,520 $5,760 $6,000 $6,187 $3.5 mil - $6.0 mil $5,500 $5,951 $6,050 $6,325 $6,600 $6,875 $7,090 $6.0 mil - $8.0 mil $6,200 $6,708 $6,820 $7,130 $7,440 $7,750 $7,992 $8.0 mil - $10.0 mil $6,800 $7,358 $7,480 $7,820 $8,160 $8,500 $8,765 $10.0 mil - $12.5 mil $7,400 $8,007 $8,140 $8,510 $8,880 $9,250 $9,539 $12.5 mil - $15.0 mil $8,000 $8,656 $8,800 $9,200 $9,600 $10,000 $10,312 $15.0 mil - $18.0 mil $8,500 $9,197 $9,350 $9,775 $10,200 $10,625 $10,957 $18.0 mil - $21.0 mil $9,000 $9,738 $9,900 $10,350 $10,800 $11,250 $11,601 $21.0 mil - $25.0 mil $9,500 $10,279 $10,450 $10,925 $11,400 $11,875 $12,246 $25.0 mil or more $11,000 $11,902 $12,100 $12,650 $13,200 $13,750 $14,179

6 Page 6 Table 3 Impact on State Chapter Dues Amount by Increase Percent Tier (population) Dues Schedule 8.2% Increase 10.0% 15.0% 20.0% 25.0% 28.9% < 1 million $2,600 $2,813 $2,860 $2,990 $3,120 $3,250 $3, million $4,350 $4,707 $4,785 $5,003 $5,220 $5,438 $5, million $6,100 $6,600 $6,710 $7,015 $7,320 $7,625 $7, million $8,700 $9,413 $9,570 $10,005 $10,440 $10,875 $11,214 > 10 million $11,500 $12,443 $12,650 $13,225 $13,800 $14,375 $14,824 Table 4 Calculation of Permissible Range of Dues Increase by Board of Directors PPI Percent change from prior year PPI Only PPI + YEAR Compounded 3% Jan 2011 (base) Base $ Base $ Jan % $ % $ Jan % $ % $ Jan % $ % $ Jan % $ % $ Jan % $ % $ Jan % $ % $ Cumulative Increase 7.9% 8.2% 25.9% 28.9% Average Increase 1.3% 1.4% 4.3% 4.8% PPI + 3% compounded