Frequently Asked Questions Proposal 3: Lifetime Membership Dues Initial Release: June 22, 2017 Additional Questions: September 20, 2017

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1 Frequently Asked Questions Proposal 3: Lifetime Membership Dues Initial Release: June 22, 2017 Additional Questions: September 20, 2017 What is the proposal to change lifetime membership dues? Currently, lifetime membership dues are calculated as a multiplier of annual membership dues: a onetime payment of 25 times annual dues. For girls who are Ambassadors at the time of their high school graduation, the multiplier is reduced to 13 times annual dues, thus offering a discount for these graduating seniors. Under the proposal, the multiplier would be eliminated. Instead, lifetime membership dues would be a one time flat rate of $400, and the discount rate would be a one time flat rate of $200. In addition, the discount would be expanded from a graduating senior discount to a young alum discount: instead of just graduating seniors, it would be available to anyone under 30 who was a Girl Scout prior to the age of 18. Why is the National Board proposing this change? In October 2017, annual membership dues will increase to $25 (from $15). Because lifetime membership dues are currently calculated as a multiple of annual membership dues, without this change, lifetime membership dues would rise from $375 (25 x $15) to $625 (25 x $25), and the discounted rate for graduating seniors would rise from $195 (13 x $15) to $325 (13 x $25). The National Board believes that these increases would significantly discourage lifetime membership by making it cost prohibitive for many who would otherwise be likely to sign up for lifetime membership, particularly graduating seniors. In addition, expanding the discount from graduating seniors to anyone under 30 who was a Girl Scout prior to the age of 18 will make lifetime membership more accessible to a broader group of young alumnae, thereby advancing strategic alumnae work. Was council input solicited for this proposal? Yes. Since 2012 a Membership Category Task Force comprised of council CEOs, council COOs, and GSUSA representatives has studied membership options. Last year, as an outgrowth of that work, a council committee was formed and chartered to provide the National Board with recommendations on membership categories and, specifically, a recommendation on a new way to calculate lifetime membership dues. The committee consisted of 7 council CEOs and a GSUSA National Volunteer Partner. The committee conducted research both internally within the Movement and externally looking at other organizations. In addition, the committee sought feedback on its recommendations more broadly across the Movement, including during the October 2017 Girl Scout CEO/Board Chair leadership summit. This proposal is a result of the committee s work. 1

2 How was the under 30 age qualification decided for the young alum discount? The committee arrived at the young alum age qualification based on research gathered from other organizations that offer young professional/member pricing. This young alum category reflects our desire to maintain contact and connection with young women beyond the smaller category of graduating seniors with the goal of retaining them for longer term engagement with the Movement. Will the graduating senior discount go away? The graduating senior discount will go away if the young alum discount goes into effect. However, every graduating senior is eligible for the young alum pricing, so they will still benefit from the discount. The change will allow for a longer window of time for graduating seniors and recent graduates to purchase a discounted lifetime membership and be active in the Movement again. How will councils and GSUSA make sure that someone applying for the young alum discount was actually a Girl Scout member prior to age 18? As stated in the Girl Scout Promise & Law, this will be on the honor of the potential member to indicate if she was a fellow Girl Scout Alum. As with other organizations that offer alumni like categories, we are trusting members to self identify. Was financial analysis used to test these changes? How does the new price structure affect financials? Yes, analysis was conducted to determine likely impact to councils and GSUSA both in terms of membership totals and financial impact. Additionally, research was conducted on other membership organizations, including other youth serving organizations, to ensure overall market parity. Our research and analysis indicates that in the short term, revenue should be comparable to previous years; over time the young alum discount is expected to broaden the base of lifetime members, adding to overall revenue. Is there a prorated lifetime membership for senior citizens? No, at this time there is not a prorated lifetime membership option for senior citizens. The discount for graduating high school seniors has been in place since 1999 as a way to encourage continuing involvement in Girl Scouting as they become young adults. GSUSA is proposing to expand the discount beyond this small category as part of a broader strategy to engage more young alumnae even after high school graduation in the hopes that they stay with the Movement and remain engaged on a long term basis. If adopted, when will new lifetime membership price points take effect? The current lifetime membership options and pricing will be available until September 30, If approved, the new lifetime membership options and pricing, including the young alum option, would be available on Volunteer Systems immediately after approval. For the week of Oct. 1, 2017 to Oct. 8, 2017, we will ask councils wait on processing new lifetime members until the National Council reviews and votes on the proposal. If the proposal passes, the new prices will be offered to anyone that expressed interest during that time. If it does not pass, the price points based on the multiplier will go into effect. Can councils create their own membership categories? No, councils are not able to create their own membership categories. As stated in the Blue Book, A Girl Scout council shall not have the authority to establish any form of local council membership dues; however, Girl Scout councils may charge an annual council service fee for girl members, not to exceed the amount charged by GSUSA for annual membership dues. See Blue Book p.22. 2

3 Why don t local councils get a share of lifetime membership dues? All membership dues, including annual, lifetime and any other applicable membership dues, are directed to GSUSA under the Constitution. GSUSA uses its revenue in a variety of ways to support the overall Movement. What is the benefit to councils to promote lifetime memberships? Many individuals interested in lifetime membership are our most dedicated stakeholders, as they are long time former Girl Scouts and committed volunteers; they continue the work of our mission through their lifetime membership. A major benefit to councils of promoting lifetime membership is to establish and cultivate a pipeline of engaged members at your council who can be marketed to volunteer, donate or be a potential board member. The expanded young alum discount offers additional opportunity to cultivate these potential engaged members beyond the limited category of graduating seniors. Additional Questions (as of September 20, 2017) Why does Part C of the proposal say 25 times the annual membership dues? If we are getting rid of the multiplier shouldn t Part C match Part B and say $400? This is just a parliamentary procedure matter. In the Workbook, each separate part (A, B and C) must be presented as if no other language has changed. If Parts A, B and C pass, then the final Blue Book language will include $400 and not the multiplier. To avoid confusion, this will be explained when the Proposal is presented on the floor of the National Council Session. Can you explain in more detail the type of financial analysis and modeling you did in support of this proposal and what the revenue projections are? Financial analysis and modeling was used in analyzing these proposed membership options. Different price points and demand levels were analyzed in the formation of both the lifetime membership amount and the young alum discount. Our research and analysis indicates that in the short term, revenue should be comparable to previous years; over time the young alum discount is expected to broaden the base of lifetime members, adding to overall revenue. What organizations did you compare GSUSA to? Other youth serving organizations, as well as other membership organizations such as museums, zoo and university alumni associations, were all researched during this process. While no organization is a perfect comparator because every organization has its own specific history, needs, and projections, the joint council/gsusa task force still thought it was useful to see what was being done in the market. What about other barriers, such as limited infrastructure and technology issues? With 109 councils now on Volunteer Systems, the membership process, which includes the purchase of lifetime memberships at the standard and young alum discounted rates, is extremely effective and efficient for the customer. The proposed membership options will be automated and easily accessible via an online process for those councils. 3

4 Why aren t any scholarships, discounts or payment plans available for lifetime membership? The young alum option is a discount on lifetime membership for former girl members. This is an extension of the discount that was previously available only for graduating seniors. Scholarships are handled at the council and service unit level. What type of marketing/advertising support and materials will GSUSA provide to councils to roll out these changes? GSUSA will continue to communicate changes to councils. Information will include technology changes and benefits that come from these changes as well as the benefits of the membership categories. GSUSA intends to roll out increased marketing tools that communicate the benefits of lifetime membership for councils to be able to market this option to increase the number of lifetime members. Can lifetime membership be purchased as a gift for someone? If a council, a parent, or anyone else gives a gift of lifetime membership to a graduating senior (or, if the proposal passes, to a young alum), does the person paying for the lifetime membership pay the regular rate or the discounted rate? Lifetime memberships may be gifted. The price depends on who the lifetime membership is for (a young alum or an adult), not who makes the purchase. At this time, parents and troop leaders will be able to purchase the lifetime membership as a gift at the young alum discount through the Member Community in Volunteer Systems. At this time, other parties cannot gift the young alum option through Volunteer Systems, but GSUSA is working on ways to make both purchasing and gifting lifetime membership easier stay tuned for more information soon. Why not just lower the multiplier, rather than making it a flat rate? One component of driving membership growth is ensuring we have membership options that meet our business and customer needs. The committee determined that a set price with less of an immediate increase in cost would better serve the customer. Additionally, deleting the multiplier and going with a flat rate was recommended by the joint council/gsusa task force so that lifetime membership can be set at an appropriate price and not be tied to the annual membership price, which may have different considerations. Why $400 and not a different fixed price? The price of $400 was proposed based on internal financial models and research from other membership and youth serving organizations. Why can t someone buy lifetime membership before the age of 18? Lifetime memberships are only available to those 18 years or older or a high school graduate or equivalent and this dates back to when lifetime memberships were first created in In 1981, there was discussion between the National Board and the council who proposed the lifetime membership proposal about whether it should apply to girls. It was decided that it would not, for several reasons, 4

5 including that the National Board did not want there to be a division or perceived division within troops between those who were lifetime members and those who paid annual dues. In addition, there was a question as to whether a girl could fully make a long term commitment to accept the principles and beliefs of Girl Scouts. At the 1981 National Council Session itself, there was an amendment proposed on whether it should be extended to girls 14 and older and it was voted down. It was agreed that it should only be for adults. The requirement that a lifetime membership only be available to those who are 18 or older or a high school graduate or equivalent continues today. Why make someone be a Girl Scout first to get the discount? This means men can t have the discount. Lifetime membership is open to any person, including men, who may wish to join. The young alum discount option is designed to give former girl members an incentive to continue or renew their involvement in the organization as members, potential donors and/or volunteers. Other categories and discounts can be considered in the future. Why is someone eligible for the young alum discount if they were a Girl Scout only for a short amount of time? Any former girl member under 30 qualifies for the young alum discount. We know girls benefit tremendously regardless of their short or long tenure in the Girl Scout program, and all young alumnae who express interest in coming back to Girl Scouts on a long term basis are individuals we would like to incentivize. As such, this option is available to all former girl members regardless of tenure in the program. Will expanding the discount from graduating seniors to young alum take away the urgency to sign up as a graduating senior, thereby losing revenue? By taking away the tight window for graduating seniors to sign up, this category will allow a longer period of time for graduating seniors and young alumnae to take part in a discounted lifetime membership. With increased marketing tools for councils, we will be able to market this option to increase and expand members in this category. Are lifetime membership funds restricted to an endowment and how is that endowment used? Currently, it is GSUSA s practice to take the annual membership portion of a lifetime membership (currently $15 but will be $25) and put it towards operating expenses as with all annual membership dues. The remainder is placed in a board established endowment fund. The spend rate from this endowment is used for GSUSA expenses such as developing program, national media efforts, and council support. 5

6 Why is the National Board bringing lifetime membership dues before the National Council when it did not bring prior annual membership dues increases to the National Council? This proposal is about lifetime membership dues and not about annual membership dues. That said, the National Council and National Board have shared authority over membership dues, as the National Board has the power to manage the affairs of the organization between sessions of the National Council and authority to establish standards, procedures and interpretations regarding membership credential requirements which includes the amount of dues. This means that either the National Council or the National Board can, at their respective meetings and subject to Blue Book requirements, vote to change the dues amount. Consistent with this authority, the National Board voted to raise annual membership dues from $12 to $15 in 2012 (effective for the 2014 membership year) and from $15 to $25 in 2016 (effective for the 2018 membership year). GSUSA is providing a grant to councils in the amount of $4.9 million in fiscal year 2018 to assist with their membership growth efforts. At the 2014 National Council Session, the National Council discussed the work that had been done by a joint council/gsusa task force to examine future membership categories. The lifetime membership proposal is an outgrowth of that work and was developed by a Membership Category Task Force, again with numerous council representatives. The proposal seeks to keep lifetime membership amounts relatively consistent with their current price and expand the discount for graduating seniors to a greater number of young Girl Scouts alumnae. Bringing the lifetime membership proposal to the National Council provides the opportunity to receive National Council feedback. In addition, unlike with annual membership dues where a mid triennium increase may be the best response to fiscal realities, the lifetime membership dues work in the task force progressed in a manner such that the timing coincided with the National Council Session. Another factor that contributed to bringing the lifetime membership dues proposal to the National Council was that the multiplier for lifetime membership dues is contained in the section of the Blue Book labeled Membership Requirements rather than under Membership Dues and Procedures for Registration where the annual membership dues are listed. For future clarity and consistency with other membership categories, the proposal suggests changing from a multiplier to a dollar amount and moving the fees for lifetime membership to the Membership Dues and Procedures for Registration section with the other membership dues fees such that either the National Board or the National Council could address them consistently with other membership dues categories. If this proposal passes, can the National Board change the amount of lifetime membership dues? Either the National Council or the National Board will be able to change the amount of lifetime membership dues. The National Board has the power to manage the affairs of the organization between sessions of the National Council and authority to establish standards, procedures and interpretations regarding membership credential requirements which includes the amount of dues. Under the present proposal, the lifetime membership dues amounts will be moved to the Membership Dues and Procedures for Registration section with the other membership procedures and interpretations, including the annual membership dues amount. Therefore, lifetime membership dues amounts would be treated the same way as annual membership dues amounts. That is, either the National Council, or the National Board in between sessions of the National Council, would be able to vote to change the amount of annual or lifetime membership dues. 6

7 Can girls pay with cookie money? Decisions about use of cookie proceeds are made at the council level and through a girl led collaborative process within the troop. Cookie proceeds are a part of troop funds, and all uses of troop funds are set by councils. How does this proposal affect current lifetime members? It does not affect current lifetime members. The proposal would establish new pricing for lifetime memberships going forward. What is the value to an individual of being a lifetime member? By purchasing a lifetime membership, a Girl Scout demonstrates her commitment to the Movement and helps support our Movement s growth by providing funds that help bring the life changing experience of Girl Scouts to even more girls. Lifetime members receive a welcome letter and certificate from the GSUSA Board Chair, a lifetime membership card, eligibility to purchase a lifetime membership pin, and invitations to events based on council affiliation. For more information, including how lifetime membership can support our work to advocate for a more equal world for girls and expand girl advancement programs, please see the webpage and video by National CEO Sylvia Acevedo here: membership.html If a girl over 18 has already been paying an adult membership will she still be able to get the discounted young alum lifetime membership? Yes if she is under 30 and was a Girl Scout prior to age 18. How many lifetime members are there currently? There are currently about 130,000 lifetime members. Is there a directory of lifetime members? GSUSA maintains a directory of lifetime members and shares all information about members living within a council jurisdiction with that council for further engagement. Will GSUSA share lifetime membership data with councils? Absolutely, lifetime membership is shared back with the council where the lifetime member lives based on zip code. What are GSUSA s plans to engage alumnae and all lifetime members, even beyond alumnae? Purchasing a lifetime membership ensures Girl Scouts remains a vibrant and thriving organization serving every girl who wants to be a Girl Scout. This purchase goes directly to building the future generation of female leaders. We are embarking on an ambitious campaign to engage all of our lifetime members and supporters to advocate, donate and volunteer on behalf of girls. We will be providing 7

8 valuable information on social impact issues including gender balanced leadership, as well as career and social networking opportunities. We are mobilizing and sustaining a network of millions who effect change for girls to be successful in the world. Alumnae are at the heart of this work. Stay tuned as we ll have more information to share on lifetime membership in the coming months! 8