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There is one financial decision that shapes your organisation's future more than almost any other. And most association CEOs handle it badly — not because they lack the numbers, but because they lack the nerve.
The membership fee strategy is not an accounting exercise. It is a leadership decision. And if your Board is setting fees based on what feels comfortable rather than what the organisation needs, you are already behind.
There is no formula for the right membership fee. But there is a non-negotiable starting point: your members must be able to clearly articulate what their membership does for them.
Susan Barbour, Association Executive Services Consultant and Finance Specialist for Associations, frames it well: "To justify your membership fee, you need to be able to clearly outline the benefits of membership — how the funds will be used to benefit each member."
If members cannot answer that question, no fee level will feel right to them. Too low, and they question whether the association is serious. Too high, and they start shopping for alternatives. The goal is a fee that reflects genuine value — and a membership offer that actually delivers it.
In many professional associations, the member is not the one paying. The employer is. This changes everything.
If the employer does not see the value in the membership, the member's enthusiasm is irrelevant at renewal time. Associations operating in sectors where employer-paid membership is the norm need to make the value case to the organisation, not just the individual. What does membership deliver to the business? If you cannot answer that clearly, your renewal rate will eventually tell you.
Three-year memberships are increasingly common, and the logic is sound — better retention, less annual chasing, greater stability. But they carry a governance risk that catches Boards off guard.
When a large sum lands in Year One, boards tend to relax. Projects get approved. Spending loosens. Then, Years Two and Three arrive with reduced income, and suddenly, there is not enough cash to finish what was started.
If your association moves to multi-year fees, treat Year One income as a three-year budget. A small discount to incentivise the commitment is smart. Losing financial discipline because the bank account looks healthy is not.
Every AGM season, the same question surfaces. A member spots the cash reserve on the balance sheet and asks why fees are still rising.
It is a fair question. You need a prepared answer.
The minimum reserve should cover a few months of core operating costs — staff, rent, the essentials. Beyond that, the right level depends on your strategic plan. A major website rebuild, a national conference, a capital investment — these are legitimate reasons to hold higher reserves. But your Board needs to be able to explain the purpose clearly. A cash reserve without a narrative becomes a political liability.
This is the issue I push hardest on with every client.
Many associations have not increased fees in years. The Board was nervous. The CEO did not want the conversation. So fees stayed flat while operating costs rose — staff, venues, technology, insurance, everything. The result is an organisation quietly running out of runway.
At Association Executive Services we recommend that every association increase fees annually, at a minimum, in line with CPI. If you have fallen behind, you may need a catch-up increase — and you will need to manage that conversation carefully.
Alongside the increase, run a regular member value survey. Not as a formality, but as a genuine read on whether your members believe they are getting a return on their investment. That data gives your Board the confidence to make the right call — and gives you the evidence to back it.
The CEO's job is to bring the Board a clear recommendation — financial modelling, evidence of member value, a position — and then lead the conversation. Avoiding it because it feels uncomfortable is not an option for a well-run association.
If your membership fee structure has not been reviewed properly in the last 12 months, that review is overdue.
Watch our Pay Day Super webinar.
One of the main revenue streams for many associations is their annual or biannual conference. Anyone who has planned one knows that securing sponsorship is often the most time-consuming and frustrating task.
Hiring a consultant for a specific task is fundamentally different from engaging one to drive organisational transformation.
Boards often recognise the need for change when membership stagnates, governance weakens, strategy stalls, or momentum declines. Engaging a
consultant at this point is a sound decision.
How we help membership based, not-for-profit associations now and into the future.
