Graduated Dues Q&A Sheet
How successful are graduated dues with other societies?
How will this affect AAPG’s dues income?
Will a large number of current members be eligible for graduated dues?
Will members selecting the graduated dues option be eligible to vote?
Is the new plan a subsidy for members who elect to pay graduated dues?
Did the AAPG Executive Committee raise dues to pay for graduated dues?
Is it a bylaw problem for some members to receive more hardcopy products than others?
Will a graduated dues structure affect the quality of AAPG membership?
How successful are graduated dues with other societies?
Both SPE and SEG use a graduated dues model and found it provided significant growth in membership and later growth in revenue. Although SPE has a different corporate structure as far as its local chapters, they experienced a definite increase in membership when they implemented their graduated dues system. TOP
How will this affect AAPG’s dues income?
All models show that this does not significantly impact income. The worst case scenario shows a first year drop in dues income of US$100,000; however, that decline is made up by the third or fourth year on the forecast. Also, this does not take into account products and service purchased by new members. In addition, it does not take into account the intangible influx of new ideas and technical submittals by new members. Other societies use this model without an appreciable loss of income in the first few years. TOP
Will a large number of current members be eligible for graduated dues?
Most of AAPG’s current membership will not qualify for graduated dues. Based on AAPG’s current membership and estimated income levels, only a very small percentage (<10%) of current members will be eligible to take the graduated dues option (see snapshot of current membership). Also, the graduated dues program would be optional for members who qualify. Based on results from sister societies many members who qualify often decide to “buy up” and purchase additional products and services. TOP
Will members selecting the graduated dues option be eligible to vote?
AAPG’s constitution and bylaws provide voting rights for all Active members. Inequalities in net income to the Association per member have existed for decades, i.e., some members buy more products and it cost more to send publications to others. As a fair profession we have never based voting rights on perceived gross or net value per member. TOP
Is the new plan a subsidy for members who elect to pay graduated dues?
No. Members electing to pay graduated dues especially at the lowest tier will receive digital access only to AAPG publications. The cost of adding digital members to a pre-existing system is covered by their dues. The cost for purchasing additional services, such as a hardcopy BULLETIN is covered in an up charge. TOP
Did the AAPG Executive Committee raise dues to pay for graduated dues?
AAPG increases dues on a regular basis to parallel inflation. As a result, the dues were raised once during the past six years. The dues increase for the 2007-08 fiscal year is in line with AAPG’s normal dues management and will keep AAPG finances on track with the inflation index. TOP
How do we verify income?
It is based on an honor system. Although there are cultural differences from country to country, if you travel within the professional scientific community you find that ethics, like English, are a common scientific language. Other societies, like SPE, have tried this “honor system” and have experience no problems. New members are bound by AAPG’s Code of Ethics and membership is based on peer review of their ethics. A dues structure will not determine someone’s ethics—we rely on AAPG’s peer review system as the gateway to membership. TOP
Are there tax issues?
No. The graduated dues system has been thoroughly reviewed by AAPG’s legal counsel with consultation from our Washington not-for-profit attorney. All agree that the graduated dues structure does not cause any tax problems including inurement issues with the IRS. Other societies have received the same advice from their legal advisors. TOP
Is it a bylaw problem for some members to receive more hardcopy products than others?
The Ability-to-Pay model for graduated dues is also described as “you get what you pay for” model. All Active and Associate members will have access to the EXPLORER and BULLETIN as provided by the bylaws. The graduated dues option primarily changes the type of access. Although members who select the graduated dues option will receive fewer hardcopy products, these members will have the opportunity to purchase these hardcopy products. TOP
Will a graduated dues structure affect the quality of AAPG membership?
Our profession is a vibrant community of many types and attitudes of people. Members usually join because they have a sincere interest in the Association and they often want to “give something back” to their profession. Many societies have undertaken a similar process to attract new members, especially with globalization, and these changes are usually positive. New ideas and innovations often come from an influx of new members and are crucial for the growth and health of any society. TOP
Is this a competitive issue with other societies?
Yes, SPE and SEG have grown membership after implementing a graduated dues model. Many new members and companies, especially in emerging markets, are selecting membership in other societies because of their dues structure. TOP