Chasing dollars but staying on course.

I came across a thought-provoking article in the association literature the other day. The author of the article noted that in these difficult economic times, many associations seem fixated on capturing as much nondues revenue as they can. While acknowledging the importance of preserving financial health, he nonetheless wondered if this heightened focus on nondues income might come at the expense of remaining true to an association's mission and purpose. He pointedly asked if the aggressive pursuit of nondues dollars was taking associations off course and away from their members and their core reason for being.

As I read this (good) article, I couldn't resist the temptation to smile. I say that because, for the last decade or so, NEHA has been up to something rather interesting. We have, indeed, been opportunistic and have "chased" nondues dollars--and have not been shy about admitting that. As I am about to explain, however, we haven't veered off course. We've pursued some of those dollars for two very significant reasons.

First, by developing our nondues revenues, we have been able to slash the percentage of our budget that is attributable to membership dues to less than 14 percent! I can tell you that to have dues represent only 14 percent of your total income is almost unheard of in the association world. (The average association of our size typically earns upwards of 50 percent of its income from membership dues.) We've sought to drive the dues portion of our revenues down so that we could keep membership costs low. In that way, our leadership has sought to make this association as economically accessible as possible to everyone who practices in environmental health.

Second, our board has identified and even enshrined the four core services that this association is all about. They are (in no particular order of importance) our Journal of Environmental Health, our Annual Educational Conference (AEC), our R.E.H.S./R.S. credential, and our program of customer service/assistance. With the possible exception of the AEC, each of these programs typically runs at a deficit.

These "core" programs are at the heart of this association. Our commitment to both the membership of NEHA and the practitioners of this profession is that we will constantly strive to both expand and enhance these four fundamental programs.

If we aren't raising dues and if our members and those who use our programs aren't paying the full cost, then where is the money to support these programs coming from? You guessed it! It is coming from the other nondues programs we conduct. In other words, while we are chasing dollars, we are at the same time staying on course. It has indeed been our strategy to earn nondues dollars, but we invest many of those dollars in our four core programs. By following this strategy, we remain true to our heart and soul and keep the costs of these programs and services as low as we can for the benefit of our profession.

By subsidizing these programs through nondues dollars, we end up giving our members and program participants far more from their association than their dues dollars would otherwise support.

As I read that thought-provoking article, I learned of other associations that have truly pursued dollars for the sake of gaining dollars. In these stories, there were no anchors that served to direct the newfound dollars back into the association's core programs. As the author of the article lamented, such associations seemed to lose sight of the essential services that they had gotten into business to provide.

As I thought to myself how easy it is to go down that road, I appreciated even more the basic business strategy that NEHA has been following and the commitment that we have made to it. Then, however, I had a troubling thought. Our board, our staff, and many of those who play active roles in the association are keenly aware of how we have managed our association for the benefit of our members. We really haven't ever taken the time to explain this approach to the general membership. I realized that it was really my duty to take a moment such as this to provide you with an explanation.

It is entirely possible that one could observe NEHA Iron afar and conclude that it is involved in many activities that at first glance don't necessarily seem related to providing basic membership services. If this thought took root, we could very well develop within our membership a sense that NEHA was losing its connection with the people we serve.

I hope this brief glimpse into the strategic outlook of the association has helped to allay any such thoughts.

In past columns. I have made reference to the popular expression "perception is reality." I have also clarified that in its original version, the expression actually read: "In the absence of understanding, perception is reality." I hope the explanation I've given here of why NEHA has been involved in various nondues revenue pursuits will help foster the understandings that are needed for correct perceptions. To the uninformed eye, there may be times when the diversity of our programs may suggest that we've wandered a bit from our members. In fact, underneath all that we do is an overriding concern for our members and lot those who practice in this great profession of ours.

And that's the real message of this explanation!