FMCA President's report to the governing board - April 2020

[rgvtexan]

PRESIDENT'S REPORT TO THE GOVERNING BOARD - APRIL 2020

Hello, Governing Board Members:


I received my April issue of Family RVing in the mail last week. My president’s message to our membership started out with the title “APRIL FOOLS’S DAY JOKE? NOPE!”

When these words were written toward the end of February, I never would have imagined what has happened to all of us since. I still am in shock how everything in the world, including FMCA, has been turned upside down.

The Governor of Ohio has shut down all nonessential businesses in the state. That means FMCA had to close its two Cincinnati offices. We saw this coming, and FMCA’s IT department worked diligently to set up essential staff so that they could work from home. We have our computer and phone systems working, so even though staff are not at the national offices, services are still provided to keep your association running.

Both of FMCA’s international conventions scheduled for 2020 have been canceled. The Tucson convention, canceled just two weeks before it was set to begin, has resulted in a huge financial loss for your association. We estimate that we will end up losing over $700,000 from the cancellation of these two events. Being the nonprofit that we are, we simply do not have the money to refund the convention registration fees to the members who were looking forward to going to Tucson. Your Board of Directors made the difficult decision to issue convention certificates to each registrant. These certificates are good for over three years, and they are transferrable, which means they can be given to or sold to others. The added value to these certificates is that the services purchased for the Tucson event will be good at future events…with NO additional fees required. That means even though the registration fees may increase for future events, certificate holders will not have to pay any additional fee for the equivalent service. If you hold a certificate and because of your age or situation you feel you may not be able to attend a future convention, you can sell your certificate to others who would like to use it.

The Governing Board voted to increase FMCA dues by $25 at the Minot meeting last summer. Since then, we have seen a steep drop in the membership growth FMCA had been experiencing for two-plus years. From September 2019 through March 2020, we have lost a net of 1,930 members. In the same time period a year ago, we gained a net of 1,731 members. In the same time period two years ago, we gained a net of 2,176 members. Our dues renewal rate is down 3.5% from a year ago, and down 5.5% from two years ago (during the same time periods). What is even more disturbing is the fact that our new member acquisition is down 24.3% from last year and down 25.4% from two years ago (same time periods).

The current pandemic has also hit our membership numbers as it has hit our finances. We lost a net of 787 members in the month of March 2020 —the most we have lost in a single month since 2015. The trend for this month, April, is that we may experience a loss of more than 1,000 members. That is disheartening. I have not seen anything like this during my 30-year membership in FMCA.

Your association consists of three main functions: CONVENTIONS/RALLIES, COMMUNICATION/PUBLICATIONS, AND MEMBER BENEFITS. If FMCA is to survive, we must continue to provide our membership with these three essential services.

The good news is that you have elected good national officers to represent your association between your Governing Board meetings. You also have a very skilled and seasoned Finance Committee. This committee is made up of members who have spent their whole working lives (most of them) in the financial world, and they have many, many years of experience as involved FMCA members.

Please pray for your association leadership. Please let our staff know of any members suffering from this dreaded virus. And please know that as the world’s largest nonprofit RV association, we will weather this storm…and come out on top, better for it.

Until next time,







Jon Walker
National President
FMCA
574-536-4554
jwalker@fmca.com

[Ray,IN]

The financial aspect of this pandemic might last 20 years IMO; the POTUS predicted 12-14 years back in early March.
What is most sad is, anyone working for wages will never be able to make up what they are losing now.
If RVing organizations do not survive it will mean little if people have no money to spend on anything besides shelter, food, and medicines.

[marjoa]

Originally Posted by rgvtexan

The Governing Board voted to increase FMCA dues by $25 at the Minot meeting last summer. Since then, we have seen a steep drop in the membership growth FMCA had been experiencing for two-plus years. From September 2019 through March 2020, we have lost a net of 1,930 members. In the same time period a year ago, we gained a net of 1,731 members. In the same time period two years ago, we gained a net of 2,176 members. Our dues renewal rate is down 3.5% from a year ago, and down 5.5% from two years ago (during the same time periods). What is even more disturbing is the fact that our new member acquisition is down 24.3% from last year and down 25.4% from two years ago (same time periods).

To me that pretty much sums it all up to me. RVing has been growing leaps and bounds these past few years and nothing but growth as far as the eye can see. So, why not raise our rates and capitalize on this? Whoopsie Daisey !

Maybe it's time to drop fees, add some incentives and give folks a reason to come back or join for the first time. There's a lot of competition out there and it's a never ending fight to stay ahead of the game. To many companies/groups take their customers for granted. Politics is the same way. I know, I've been self employed for the past 45 years but retired now. Hopefully your well experienced financial staff will implement some good ol American advertising and some common capitalism techniques that have worked thru the ages.

[ransil]

What did they do with those 700k in fees ?

[UFO Pilot]

The "dues" were raised to cover the increased premium for the "MediVac" coverage which is free to FMCA members. I personally know 4 people who have used the "MediVac" program and is has saved them thousands of dollars. I will gladly pay the extra $25 per year, even if I never use the program myself. Knowing the program is there gives me peace of mind.

[rgvtexan]

Clarification: I am only a basic member of FMCA nothing else, I was just posting a letter I had privilege to.

[UTTransplant]

Originally Posted by ransil

What did they do with those 700k in fees ?

The $700,000 was the amount lost in cancellation costs. Many, many contracts had already been let - the fairgrounds, the generators, the event set up/tear down folks, rentals of many pieces of equipment from sound to golf carts, entertainers, plus many more.

[minnow]

Originally Posted by UFO Pilot

The "dues" were raised to cover the increased premium for the "MediVac" coverage which is free to FMCA members. I personally know 4 people who have used the "MediVac" program and is has saved them thousands of dollars. I will gladly pay the extra $25 per year, even if I never use the program myself. Knowing the program is there gives me peace of mind.

Time to make that medivac program self-supporting. You want it, here's the cost. Glad you would pay the extra yearly dues for this program. Obviously there are many who felt otherwise as raising those dues $25 bite them in the a@@ big time didn't it.

As this point, it appears that FMCA might not even be around in a year.

[NXR]

Originally Posted by UFO Pilot

The "dues" were raised to cover the increased premium for the "MediVac" coverage which is free to FMCA members. I personally know 4 people who have used the "MediVac" program and is has saved them thousands of dollars. I will gladly pay the extra $25 per year, even if I never use the program myself. Knowing the program is there gives me peace of mind.

The cost likely would be a lot more than $25 a year if 100% of the members are not chipping in. Perhaps FMCA is looking at a different provider than Seven Corners. They raised the FMCA's cost due to their administrative costs.

Ray

[NXR]

Originally Posted by Ray,IN

What is most sad is, anyone working for wages will never be able to make up what they are losing now.

Paradoxically, a local restaurant/sports bar chain with eighteen locations that was offering carryout put out a notice that they were closing up for the duration and laying all of their employees off.

Why? Because with the extra $600 a week that the new unemployment compensation program pays, most if not all of their employees that were still providing carryout services would make more money on unemployment.

https://www.facebook.com/WinkingLizard/posts/10157944692791206?__xts__[0]=68.ARCgJZrzTLOD92Dt61nguz_i51IxcDPTghDbiXrTNCoK9V J6oh5zIHaDB91jtmyyJdHSSW90_aX1nt2VHrQ3sQlTQB63Ymwr f3UofKmIfM4UOJcMWK3sLvnRD3nqbWYm3vQ72Cwf3OagrGwtig 0z9szOj_BCMmXtPbuc1YEdZTi-adyZetOiKa4iZznHxXgVa0Mp3jTtivv-88auftc0Ty40h2hHwdbCSUNatnKSYNEuXYbVu69oSvcHiZBGeG ZQ2sH02hnke1edBLT85KE7A8H1EAb9P3tX2UDetq9IJUjcS87X 9aeP&__tn__=K-R

Ray

[JBDISCOVERY]

I welcomed the posting of the FMCA's president letter. An honest
report on how the China Virus is hurting our club.
We have been members for over 16 years. A real value to us.
Gladly would pay more than the current dues to continue
receive the news and benefits that FMCA provides.
Would also be willing to pay an additional fee for the medical
evacuation that I hope to never use.
JimB

[minnow]

Originally Posted by NXR

....

Why? Because with the extra $600 a week that the new unemployment compensation program pays, most if not all of their employees that were still providing carryout services would make more money on unemployment.

Ray

That's what Sen. Graham said would happen. He was all for making those laid off from the virus "whole" but the $600 added fed. bonus would result in many employees leaving the workforce as they make more $$ sitting at home.

[MidMichHunte]

Interesting read. New to RV’ing and was looking at clubs to join. Can’t say I feel good about FMCA’s future after reading this. Sad because I thought they were the one to join. I hope they survive and come back as strong as they were PC (pre COVID).

[Chargerman]

FMCA is definitely one worth joining. The medical assist program is outstanding. I know someone who had to use it. It’s one huge benefit. The monthly magazine is great too and most important is meeting up
with folks who share a common interest. FMCA will continue on although adjustments will certainly be needed. What they are experiencing is no different than any other company or organization. If you have never been a member I would encourage you to join and participate in a local chapter or two