Q&A
Question: Isn’t the current system of setting
dues very cumbersome? Yes and no. Yes, because there needs to be
a vote. No, because it allows for the members to voice their
opinion. It is similar to an election to public office: there
needs to be an election which is cumbersome, but it allows for
the people to vote. The people get their say. Another point to
consider is that a dues increase has taken place only about once
every 10 years.
Q: Why shouldn’t the dues be moved from the
bylaws to policy?
A: As long as the dues are in the bylaws, the board of directors
has to carefully consider any raise of the dues. If the dues are
moved from the bylaws to policy, then the board of directors no
longer needs to get the membership’s approval for any increase.
Q: Why is the organization doing this?
A: The organization is assuming that future dues’ increases are
inevitable. To create less resistance to a dues increase, the
board of directors would like to make smaller, but more frequent
increases. It is less likely that the members would object to
many small increases than to another big one in a few years
time.
Q: Are dues increases inevitable?
A: This question can only be answered after a thorough analysis
of the organization. Potential savings could apply to marketing,
printing of manuals, number of new materials etc. The author
suggests that this analysis be done by an independent, external
business consultancy. (A thing to consider: McKinsey has shown
that they can reduce costs by 30% in all organizations that have
not gone through a business process reengineering for more than
10 years.)
Q: What happens if the proposal is not accepted
by membership?
A: Things will remain as before: If the board of directors feels
that a dues increase is necessary, they will ask the membership
for its consent through a vote.
Q: Why should the members have a right to decide
on the amount of membership dues?
A: The members are financing the organization through their
dues. As long as they pay, they should have the right to decide
what the dues are and therefore what the budget for Toastmasters
International is.
Q: What’s in it for me?
A: If proposal A is approved, you will no longer have the right
to vote on future dues increases. If you vote against proposal
A, you will continue to be able to decide what the budget of the
organization is, and whether there need to be additional funds
to develop new materials. (On a personal note: Toastmasters has
so many great programs that I am convinced for 99% of all
members they would last for the rest of their lives.) Having
seen how little new programs there were developed with $8 mio.
($4 mio. over two years) it seems there is very little in
proposal A for you.
Q: How will this affect members and clubs?
A: If the dues continue to increase, it will become increasingly
difficult to attract and retain members. There will be less
double and triple memberships, and all the inactive members will
leave the clubs. This in turn will make it more difficult for
the clubs to found local activities and pay for such things as
room rental etc.
Q: How do we know the Board will continue to
keep administrative costs low and won’t raise the membership
dues at every opportunity?
A: We don’t know. There was a deficit for three years prior to
2005 before any action was taken. Two years later it is not
clear what the $4 million additional revenue (every year) were
and are spent on. At the club level the only difference in 2
years has been one new manual. This seems very little value
compared to the additional revenue produced due to the 50% dues
increase in 2005.
Q: Isn’t there a detailed financial statement
every year?
A: Yes, there is. It has in the past always been published in
the Toastmasters magazine in the June issue. While it gives a
good overview, there is little detail. It is not clear how many
employees there are, what departments they work in, how much
they make, what kind of marketing expenses there are etc.
Q: Is there an annual budget that needs to be
approved by the membership?
A: No, there is not. There has been no detailed budget been
presented in the past. It is not clear what the members’ money
is planned to be spent on. In 2005 there was no budget presented
on what the additional $4 million were planned to be spent on.
Q: Can’t we ensure that all is good if we elect
qualified officers to the board of directors?
A: In an ideal world this would work perfectly. However, we are
not in a perfect world. Consider the elections for 2007. There
is only one candidate for the top three officers: one for
President, one for Senior Vice President, one for Second Vice
President. The situation has been the same in the past years,
also in the 3 deficit years prior to 2005. The only powerful way
for the members to take influence is the vote on the dues
increases.
Q: Isn’t Toastmasters the best price value on
the market for public speaking?
A: It is excellent value. Nevertheless, the value has remained
almost the same, in spite of a dues increase of 50% in 2005.
Only one new manual has been introduced in two years.
Q: What can members do, if they are not
satisfied with what the board of directors suggests?
A: Take action. Talk to your fellow members, area, division and
district governors. Write to headquarters. Set up communities
and discussion forums. It would be great if headquarters would
allow for an international discussion forum. Q:
Are there any suggestions as to how to make sure the
organization is run in the best possible way?
A: As with every big organization, after a few years the
organization is not as streamlined as it could be. This is
probably true for Toastmasters International, too. The author
suggests that the organization lets an independent business
consultancy analyze the current processes and suggests means of
saving costs. Dues increases are probably not inevitable.
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