From the STC President—The New Norm: STC’s 2010 Dues Structure and Membership Benefits

Cindy Curry, 2009-10 STC President
Cindy Currie, 2009-10 STC President

Ever since we announced at the Summit in Atlanta in May that STC is experiencing an unprecedented financial challenge, the Board of Directors, chapter leaders, key committees, and staff have concentrated on finding an appropriate solution. I’d like to share that solution with you here.

A Little History

I can’t tell you how many conference calls in the past four months have been devoted to examining the finances, cash flow, budget, and services for next year because I lost count after 30 or so.

As I have outlined in previous emails and columns, the shortfall is primarily due to the negative impact the recession has had on our two main sources of revenue—membership dues and the annual conference. The revenue generated by these two sources provides the funding for most of the member benefits and Society activities. The 2009 conference was successful, but it did not generate the surplus that it has in the past. Similarly, the recession left us with a loss of about $400,000 USD in principal and interest from our investments, which have traditionally been used to provide support for activities that have as yet no revenue source, such as the Body of Knowledge and other key committee work.

The recession brought to light underlying weaknesses in our pricing structure that now force us to change the way we provide benefits. For years, STC has been adding and expanding services and activities to benefit members and the profession without taking a hard look at how to sustain those activities. And with only periodic, modest increases in fees, the costs to sustain those services and activities have outpaced our dues and total revenue to the point that the Society has actually been subsidizing these activities.

We Have Cut the Budget to the Bone—and Then Some

Cutting an already tight budget is not easy. I want to acknowledge the efforts of the staff and the Finance and Investment Committee for their extreme diligence in closely examining our financial reports, cash flow, and budget papers. They cut close to $1M USD in expenses during the last half of 2008 and throughout 2009. In preparation for the 2010 budget, every expense, every revenue source, and every activity was examined. We used a zero-based model to develop our 2010 budget and essentially built it from scratch. It is realistic, sustainable, and includes only those benefits and programs that we can afford during this economic downturn. It is definitely “bare bones”—and balanced!

I also asked chapters to plan their programs through 2010 and to develop associated zero-based budgets, and then, if possible, to forward their surplus funds to headquarters to help cover the anticipated shortfall in the fourth quarter. This approach allowed the chapters to “take care of themselves first” and then to help the Society through the financial crunch time. I’m happy to report that of our 101 chapters, almost all have now responded with a program plan and budget, and many with surplus funds.  I am sincerely grateful to them for their understanding that STC is one organization and that by working together, we will come through this financial crisis. A few chapters have asked for a little more time to complete their budgets, and we are actively communicating with the remaining few to complete this phase of the recovery.

2010 Dues and Realignment of Prices

STC spends, on average, just under $250 to provide services to a member, yet dues rates have been well below that amount. As I mentioned earlier, for several years the revenue generated by the annual conference and our earnings from invested reserves have covered the difference—until now. We need to change our business model and adopt a pay-as-you-go approach.

In 2010, dues will cover basic member benefits with a la carte pricing for additional features. The core benefits remain, but with some changes. Basic dues do not include membership in a chapter and SIG. You are encouraged to take advantage of the many local and virtual benefits offered by chapters and SIGs by purchasing a la carte membership for $25 USD and $10 USD, respectively. All members will receive the electronic version of our publications. Print subscriptions to Intercom and Technical Communication are available for $30 USD and $75 USD respectively. The 2010 membership fees, approved by the Board of Directors, are:

Basic Membership         $215 USD
Students                        $ 75 USD
Retirees                        $145 USD

A split payment plan for dues will be offered so that members can make four payments using a credit card. Details will be explained on the website. 2010 membership renewals will open online at noon EDT (GMT -4) on Thursday, 15 October.

STC will also offer a limited number of Gold Membership packages at $395 USD. The Gold package will include membership in one chapter and one SIG, plus registration for seven webinars, one online certificate course, the Salary Survey, and a Premium listing (50-word description) in the Online Buyers Guide & Consultant Directory. The value of this package is $1,458 USD.

STC will continue to give discounted membership rates to persons located in low and lower middle-income countries as classified by the World Bank. A Basic Membership in these countries will be $160 USD, and students in those countries will pay $60 USD. And, as you can see, the membership rates for students and retirees remain unchanged.

Some of our activities will also require fees, which we will implement in stages. New this year are administrative fees for applying for the Fellow and Associate Fellow honorary ranks. All entries to our international competitions will continue to pay a fee, with some modifications to the existing fee structure likely for the 2010 competitions.

In an effort to increase revenue sources, STC will offer nonmember subscriptions (print only) at much higher rates to Intercom and Technical Communication (the journal has permitted institutional subscriptions for years).

As we go forward, we are leaner by necessity, more efficiently organized, more focused on up-to-date service delivery, and ready to move into the future as a financially stable organization far less prone to economic impact.

Help for Those the Recession Has Hit the Hardest

STC will offer unemployed and underemployed members a lifeline to their profession in the form of membership grants and scholarships for the live web seminars and the Job Seeker Boot Camp. The Board has approved a limited number of Recovery Packages, partially funded by the Marion Norby Scholarship Fund. Details on selection criteria and application process are currently being developed by a task force and will be posted on the STC website soon.

This has been a very intense period for all of us. A great deal of time, talent, energy, and scrutiny have gone into building a balanced budget and program plan that will not only get us through 2010, but lay a solid foundation for a strong future—one where STC is viable, sustainable, and relevant.

I thank you again for continuing to be part of this great organization during these turbulent times, and for your trust in and support of the leadership team.

 

 

Cynthia C. Currie
2009-10 STC President

0 Replies to “From the STC President—The New Norm: STC’s 2010 Dues Structure and Membership Benefits”

  1. “Basic dues do not include membership in a chapter and SIG. You are encouraged to take advantage of the many local and virtual benefits offered by chapters and SIGs by purchasing a la carte membership for $25 USD and $10 USD, respectively.”

    So who gets the $25 and $10? Will it be paid by the member directly to the Chapters/SIGs? Or to the Society and automatically passed on to the Chapters/SIGs? I thought I read previously that pass-through payments to communities were being suspended except in the case of chapter/SIG hardship.

  2. Good luck with that. You will, I fear be going forward without this member from New Zealand. As I mentioned in my, apparently ignored, feedback about the services provided, most do not reach this side of the world:

    – the ready-made network of peers suffers from a lack of a local organisation;

    – the jobs database doesn’t stretch much outside the USA;

    – the NZ chapter appears to be missing, presumed dead;

    – seminars might be nice sometimes, but rarely appeal at 4am NZST;

    – the salary database is USA only; attending the Summit is out of my reach due to cost;

    – there is no local insurance program;

    – the Aberdeen group research proved to be less applicable than I had hoped to my situation and they appear to make it almost impossible to get off their mailing list.

    And as I said, it’s not a great value proposition. At almost twice the price, it didn’t get any better.

  3. Where can we review compensation amounts for the executive staff and a breakdown of how dues are spent?

    Given such a large increase, this information may be a deciding factor for many members.

  4. This is a tough year for everyone. Thank you and the volunteers and staff for all the work that you have done to address the financial situation and to keep STC alive. You said

    “In 2010, dues will cover basic member benefits with a la carte pricing for additional features. The core benefits remain, but with some changes.”

    Could you please clarify what are the basic member benefits that are included in the 2010 dues?

    Thank you.

  5. Karen Lane asked: “So who gets the $25 and $10? Will it be paid by the member directly to the Chapters/SIGs? Or to the Society and automatically passed on to the Chapters/SIGs?”

    According to the discussion at the STC Ideas Ning site, the money will be paid to the Society, and the Society will *not* automatically pass it on to the Chapters or SIGs. It appears that for 2010, funds will be passed on to the communities if they experience hardship. Going forward, funds will go to the communities as needed to support their programs.

    I can’t speak for the other chapters, but as membership manager for the Carolina Chapter, I can say that membership in our chapter will mean discounts at monthly meetings, competitions, training, and special events. We also want to hear from our members about how we can add value for you. The local chapters are a great place to network and make contacts that can help you in your career. For more information on how involvement in chapters and SIGs can help you advance in your profession, check out this video of the panel discussion from the Carolina Chapter’s August monthly meeting. It was our first foray into recording our meetings, but we plan to do more, so that our remote members will have access to chapter activities.
    http://www.ustream.tv/recorded/2017569

    Let your chapter and SIG leaders know what you need from them to justify the cost of membership. We’re here to serve you!

  6. I have a question regarding the $250-cost-per-member amount….

    In 2008, that figure was $300 per member, with 1/2 of that amount coming from dues and and the remainder from “other sources of revenues: conference registration, exhibits, sponsorships, advertising, royalties, and interest from investments” (reference: https://www.stc.org/membership/duesStructure02.asp). Therefore the true cost to STC per-member was aprox $150. This was reflected in the 2008 dues (which ranged from $60 for a Student membership to $300 for a Super SIG membership).

    For 2010, the cost-per-member is $50 less (the $250 amount has been included in nearly all STC communications). Yet, a Basic (i.e., previously called “Classic”) membership is $215 (and that doesn’t even include the 1 Chapter and 3 SIGs I used to get).

    I know I’m not talented in mathematics, but by my reckoning… The cost to STC is 17% *less* — but my dues are *increasing* by 33% (if I include Chapter and SIGs)?

    Is STC now being funded *entirely* by membership dues? I understand the “down economy” but do we not expect *any* other sources of income?

    Am I missing something?

  7. Andrea Wenger said, “According to the discussion at the STC Ideas Ning site, the money will be paid to the Society, and the Society will *not* automatically pass it on to the Chapters or SIGs. . . .I can’t speak for the other chapters, but as membership manager for the Carolina Chapter, I can say that membership in our chapter will mean discounts at monthly meetings, competitions, training, and special events. We also want to hear from our members about how we can add value for you.”

    In my view, chapter membership under this new paradigm becomes meaningless. Member A pays an extra $25 to “belong” to Chapter X. Chapter X gets no support for its programs that are to benefit Member A. Why should — and, importantly, how can — Chapter X privilege its “members” with discounts at monthly meetings and all the rest when that added chapter support for “members” has no funding from the Society?

    Without some remuneration from the Society to support programs for our members, chapters will have to raise rates for everything — and there will be no practical difference to the chapter between “chapter members” and “chapter nonmembers.” And once that is the case, why should an STC member opt for chapter membership at all? The chapter cannot give these folks anything extra because the chapter cannot afford to do so.

  8. Good luck, STC! Your membership is not worth $215, especially when it includes less than it did before! I will not renew at these increases. Money better spent in other ways.
    I think you should reconsider this tactic; this is not the time to gouge loyal members, which likely will decrease membership. You need to retain and even increase membership, or you’ll have nothing to offer. You could have gotten away with either raising the rate or offering a la carte pricing, BUT NOT BOTH! It’s going to blow up in your faces.
    If you come to your senses and still exist a year from now, I’ll consider coming back.

  9. > STC spends, on average, just under $250 to provide services to a member

    > STC will continue to give discounted membership rates to persons located in low- and lower-middle-income countries as classified by the World Bank. A Basic Membership in these countries will be $160 USD,

    Please explain how this pricing model is sustainable. For every person who pays 160 USD, STC loses 90 USD.

  10. What this amounts to is you charging me $215 for a bad web site.

    The only thing that made the previous dues structure even remotely worthwhile was the print publications. I read them on my couch, on the train, and other places where it is just not practical to drag along an “electronic version” of the magazine.

    Furthermore, the STC web site is an island that provides no central area to access chapters and sigs and is so poorly designed that I can’t even find the forums on it and it shows the big blue “Login” button whether I’m logged in or not.

    You would think that a society of technical communicators would be able to develop a decent web site.

    You would think that a society of technical communicators would recognize that print and “online” are two distinctly different mediums that serve different needs and are not interchangeable.

    You would think that a society of technical communicators wouldn’t eliminate valuable print media based on chicken little environmentalist propaganda about a “global warming crisis” that has not existed for over a decade if it ever existed at all.

    You would think.

    I renewed last year despite my reservations. I will not make that mistake again.

    Good luck increasing the cost of membership while decreasing the services you provide. Sounds like a great value proposition.

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