FROM THE BOARD
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A message from Anne Fairchild, RN, BSN, MS, CNOR Treasurer, AORN Board of Directors |
Why AORN needs a membership dues increase
At Congress 2010, AORN’s board of directors will propose a membership dues increase, effective July 1, 2010. Here are the facts surrounding the proposed dues increase:
- WHO will be affected?
Standard and Associate membership categories - HOW MUCH will the increase be?
$20 per member - WHEN will the increase take effect?
July 1, 2010 - WHY do we need a dues increase?
We haven’t increased dues since 2003, while the cost to provide member services has increased each year.
Your board of directors would not propose a dues increase lightly—especially in a down economy. There are many factors to be considered. National and global financial concerns have impacted AORN’s revenues and investment income in 2008-09. Significant factors include:
- Decreased attendance at Congress and other AORN face to face events
- Reduced industry support
- Decrease in membership
- Lower demand for AORN products and services
- Reduced investment income
Recently, many of us have experienced personal financial challenges and we have made difficult decisions to preserve our future. AORN is at that juncture. Due to declining revenues, AORN’s executive team and board of directors has had to make difficult decisions, including:
- Reduction in workforce (first in AORN’s history)
- No merit increases or incentives
- Reduced 401k contributions and other employee benefits
- Reduced capital spending
- Reduced travel for staff, committee members, and board members
- Investments moved from stocks into lower-risk bonds and money market funds
Additionally, AORN staff members were asked to seize every opportunity to reduce expenses within their control. These combined efforts have been very successful in reducing the impact of the poor economy on our association. AORN executives and other staff members responded quickly and responsibly to the economic challenges.
Current estimates suggest a small profit will be generated in 2009, despite lower revenues and investment income. However, the cost of services provided to members continues to be significantly higher than the revenue received from membership dues. AORN member services include:
- Customer service
- Nursing practice/consult line
- Support to chapters, specialty assemblies, and state councils
- State and federal advocacy
- Library
- Continuing education contact hour approval
- Connections, Management Connections and AORN Journal
- Travel and expenses for national committees and board of directors
- ANA affiliation
- Allocated overhead (percentage of indirect costs, including utilities, accounting, salaries, facility management, marketing, legal, consulting)
In 2003 membership dues were increased to cover the costs of member services. Since then inflation has increased annually, without any increase in our dues. For 2009:
- Membership dues are $100 ($20 to chapters, net $80/member)
- Total dues revenue is projected at $3,309,786
- Total cost of services to members is projected at $4,527,923
- Membership services will experience a deficit of $1,218,137 (a deficit of $29.71 per member)
Had the $100 dues been increased each year to reflect the inflation rate (consumer price index), dues for 2009 would be $116.08—a $16.08 increase. Without a dues increase, services to members may need to be reduced. However, based on the cost-effective changes that have been made at Headquarters, we believe that a dues increase of $20 per member (rather than $29.71/member) will be sufficient to meet the organization’s needs over the coming two years. Only Standard and Associate membership categories will be impacted by this proposed increase. Retired, Student and Lifetime membership categories will remain at the current level. Also, the 3-year membership would increase to $324 (10% savings). In 2012, the Board will come back to the members for a more permanent and sustainable solution based on the state of the organization and of the economy at that time.
Read more about the proposed dues increase and other proposals slated for discussion at AORN’s 2010 House of Delegates.
Read more news in AORN Connections.