Slovenski Dom - Toronto - Slovenian Home Association

 
 
Slovenski Dom July 6, 2009 – Monthly Board Meeting Agenda Item
Prepared by Robert Frankovic – Treasurer
 
Directors to Amend Refundable Membership Debenture Policy into Non-Refundable
 
Issue
The $69,000 in Member Loans that we currently hold are invested in Term deposits which have to be liquid / convertible to cash (in bank accounts, short term investments) because they are loans (Liability– Refundable Membership loans from Members.) The monies can NOT be invested in fixed assets (Buy new land or new property) and can not be spent on operating activities in case members decide to leave Slovenski Dom. 
 
Proposal
Amend the Membership Policy from selling Refundable Membership debentirues to Non-Refundable Debentirues – ie. One time fixed fee to join Slovenski Dom.
 
Pros
 
Most clubs (profit and non profit) do charge a one-time entry fee. Additionally, most clubs charge annual member fees - which we do not.
We could use this money to carry out additional activities and increase our building funds (new Building Fund and Emergency Old Building Fund). 
Non Refundable Membership Policy would be additional cash raising revenue stream - Account for new members as Revenue and Cash, Not Liability and Cash.
Most new members assume the money is a donation / contribution to Slovenski Dom i.e. the money is gone.
$250 is insignificant to 50 years ago when the same $250 could be used as a down payment on a house.
 
Cons
 
Oskar mentioned it would be harder to attract new members as he sometimes uses this as a selling point when attracting new members. i.e. Members can get their money back if they are not happy with Slovenski Dom.
Slovenski Dom does not have a facility or offer many events where Members are giving preferential treatment i.e. Free / lower entrance costs.
Other ideas - such as annual subscription fee - but we need to offer more.
 
 
 
Notes

• Applicable to new membership debentures only. Previous remain refundable.
• Does not include any annual fees – however this can be discussed as a side issue.