Why do companies with multiple memberships have to pay provincial and national fees more than once?
Info for EOs and Members regarding multiple membership fees
This issue comes up from time to time as larger companies who operate in multiple localities wonder why they pay the provincial and national fee in each local. If you’re having difficulty answering the question yourself, the following information explains the national fee structure.
Flat Fee Structure
In BC, NB, Ontario and at the national level, we have only one flat fee rate per member, irrespective of the size of the company. (In Alberta, the provincial level charges higher fees for larger companies.) Therefore, one could consider that for the majority of the country, rather than charging higher fees to larger companies, the rationale is simply that if they are large enough to work in multiple cities, they pay each time in each local instead of being charged more simply as a larger company.
Supporting Local Associations
Also, it is inappropriate to look at the provincial/national fees paid with each local membership as simply going to provincial and national activities that “should only be paid for once.” Both the provincial and national levels spend extensive time and resources supporting the local associations, so in many ways a good portion of the provincial/national fees help to make the local associations much more than what they would be otherwise, in terms of brand presence, effective operations, support for EOs, etc.
Employee Benefits at a Local Level
In addition, with the many benefits like training discounts and our National Advantages benefits program available to each employee, the benefits of provincial and national memberships accrue in each local to the employees in each area.
Association Revenue (What a Fee Structure Review Could Mean)
It’s also worthy to note that about 10% of our revenues come from multiple memberships, so by suggesting there be a discount, the ask is basically for provincial and national to reduce revenues by charging larger companies less. It should be noted that if there were ever a fee structure review, it would likely go the other way – smaller companies would be charged less and larger companies would be charged more.So that is the rationale for the fee structure, which long pre-dates all current staff and boards of directors. This issue has been brought up before, but per the above, there hasn’t been much of an appetite to make adjustments, as that process would be quite complicated and seemingly not very justifiable. It would also likely mean a very complex complete fee structure review, which is never popular.
How to Answer a Member’s Question
If you get asked from a member why they’re paying provincial or national fees with each membership, here’s a standard response that you can modify as needed:
Dear Member,
Thank you for your inquiry. We’re happy to hear your business sees the value of belonging to multiple local home builders’ associations.
Your question of why larger companies who operate in multiple localities pay the provincial and national fee in each local does come up from time to time.
The answer is that the national and provincial levels of the association only have one flat fee rate per member, irrespective of the size of the company. Rather than having higher fees for larger companies, the association operates under the logic that if a company is large enough to work in multiple cities, it pays the provincial and national fees in each local association.
In addition to the important government relations work that happens for members at the provincial and federal levels, discounts through the National Advantages benefits program available to all of your team, and industry training, support, and intelligence, the provincial and national levels of CHBA spend extensive time and resources supporting local associations, helping to bring even more value to each of your local memberships.
Also, it is inappropriate to look at the provincial/national fees paid with each local membership as simply going to provincial and national activities that “should only be paid for once.” Both the provincial and national levels spend extensive time and resources supporting the local associations, so in many ways a good portion of the provincial/national fees help to make the local associations much stronger than what they would be otherwise, in terms of brand presence, effective operations, support for EOs, etc.
I hope this answers your question. For more information of how the national level of CHBA is working for you, please see this document.
Sincerely,
EO
Note: feel free to add in specific provincial membership benefits (like training discounts, etc.), and link to your province’s provincial value piece if applicable.