After a year-long discussion and research of other PGA Sections, the North Florida PGA Board has approved a dues increase ($35 for most Class A members) to take effect May 1, 2021. Per the PGA of America, the dues deadline has been extended to August 31, 2021. This increase will allow the Section to continue providing all 1,500+ Members with quality programs and service opportunities while strategically preparing for the future. To learn more about the increase, please read the following information. Please connect with a Section leader or attend the virtual town hall chat scheduled for April 16 at 1 pm if you have questions or comments.
Learn More About Increase
Over the past three years, Section leadership has significantly improved our Section’s financial position by implementing key accounting standards, increasing revenues, and being disciplined with spending. However, leadership recognizes there is still work to be done to ensure a strong long-term financial position. Positive cash flow and an operating reserve fund are required to navigate through challenging times like a pandemic, severe economic downturn, or the like. The best practice for a non-profit organization is to have an operating reserve fund equal to a full year of operating expenses.
The Section was very fortunate this past year. By May 2020, revenues were down 100,000 due to the pandemic. This combined with the dues deadline being moved to October 31, put the Section in a position where it was projected to have negative cash flow throughout the summer and insufficient reserves to continue operating beyond September 1. Fortunately, the Section benefited from managing several one-time Korn Ferry and PGA TOUR events that bridged the gap in lost revenues.
While disaster was averted, the situation did confirm the need for a reserve fund. As such, Section leadership has approved a strategic reserve fund policy. A reserve fund will be developed per the policy by investing an annual percentage of the Section’s core revenues (Dues and ADP Funding). The Section’s Finance Advisor estimates that it will take 10 to 12 years to accomplish this goal based on the planned annual investment and conservative investment strategy.
Section leadership is committed to continuing to enhance revenues and to be fiscally responsible with expenses. However, it is also apparent there is a need to increase dues. While researching a dues increase, Section leaders identified the Section’s dues structure was flawed as dues did not always balance with benefits received in each classification. As a result, the Board has approved a tiered structure, which allows the Board to set Tier 1 dues. At the same time, each of the other tiers is automatically adjusted proportionally per the system. As previously noted, this tiered structure will take effect May 1, 2021. Note: In 2021, this will require a one-time adjustment to sync all categories.
North Florida PGA Dues Structure and 2021 Rates
|1a||A, B, (except A3, A8, B6, B8)||$410||NA||Yes||Yes||Yes|
|2||A8, B6, B8, LMA||$370||10%||Yes||Yes||Yes|
Why do we need a reserve fund?
The best practice for any business is to have a reserve fund. Typically there are two types of reserve funds. One type is to help manage cash flow or short-term cash shortfalls and unexpected expenses. The other is to build up cash balances for specific purposes such as building repair and replacement and opportunity reserves to allow the organization to provide seed funding for a new idea or innovation. The primary purpose of our reserve fund is to be an emergency fund. However, as our fund reaches the primary goal of one year of operating expenses, we will continue to save, creating funds for investment in the membership.
How are changes to the dues structure approved?
Per the Section bylaws, the Board is authorized to change the dues structure and rates. Section leadership has been discussing a dues increase for several years. Last fall, the finance committee recommended a dues increase as part of the 2021 budget. In December, the Section board agreed to a dues increase for 2021 and requested dues information for all 41 Sections. In February, the Board reviewed all dues data and finalized the dues structure and rates.
Why do A-8, B-6, B-8, and Life Member Active pay less dues?
Section leadership feels this group of members are in a place where they are either starting their careers or are on a fixed income. Therefore Section Leadership felt a discount on dues was appropriate for this group of members.
Why is Life Member Retired not eligible to play in tournaments?
Life Member Retired is a classification for retired members who no longer desire to be actively engaged and thus have reduced benefits. Life Member Active is a classification for retired members who still desire to be actively engaged and maintain the same level of benefits as actively employed members. Section leadership feels strongly that dues should be commensurate with benefits.
An increase of $170 for Life Members seems excessive; why such an increase?
Life Member Active (LMA) are provided the same benefits as Class A Members. However, LMA were paying substantially discounted dues as compared to other active Members. As such, in creating the tiered dues structure, this was updated. In 2021 this required this one-time increase to sync with the tiered dues structure.
Should we expect an annual dues increase?
Section leadership is discussing making future dues increases proportionately with the Consumer Price Index (CPI) or other economic indicators. This concept would create a potential slight annual increase versus a more significant one every three to five years. Your feedback is welcome, so please reach out to one of the Section leadership.
How does our dues rate compare to our peer PGA Sections?
Before the dues increase, the NFPGA’s (4th largest membership size) dues for Class A Members ranked 22 out of 41, and LMR ranked 35 out of 41. After the increase, Section dues for Class A Members ranks 13 out of 41, and LMR ranks 25 out of 41. The average dues for a Class A Member of a Section in the top 10 in membership size are $410.
Officers and Executive Staff
- Kevin Paschall
- Russ Libby
- Matt Jordan
- John Hughes
- Steve McMillen
Chapter and Program Leaders
- Tim Baker
- Tim Beckwith
- Matt Borocz
- Jeff Boudrie
- Nick Frontero
- Mike Glenn
- Darin Hoff
- Bryan Moran
- Matt O’Brien
- Matt Pivko
- Wes Tucker
- Mark Verkey