From: SCAM@hnewstrom.ess.harris.com (Harvey Newstrom)
Subject: Dues Increase!
Date: Wed, 7 Oct 1992 01:35:00 GMT
Organization: Space Coast Area Mensa

The following items are reprinted from the October SCAM, newsletter of
Space Coast Area Mensa, Harvey Newstrom editor.  Permission is granted for
all reprints as long as proper attribution is given.


Dues Increase Justification
by H. Max Hedges (written for Mensokie, Bob Hibbert, Editor)

	On September 12, 1992, the American Mensa Committee voted to increase our dues
to $45.00 per year.  The increase was "justified by AML Treasurer Dave Remine
with an extrapolation showing a 1993 projection of approximately $45.00. 
According to his graph, the dues are barely keeping pace with inflation.
	At this point I would like to remind you of the old saying, "Figures don't
lie, but liars sure can figure."  No, I am not calling Dave a liar, but he has
used the figures which support the result he wishes to retain.  Consider the
same type graph using two other base years:  one showing the dues should be
almost $52.00, and the other showing an adjustment to about $32.00 would be
sufficient.
	You see, taking a base year immediately after a dues increase will give you
the highest result, and taking the base year immediately preceding a dues
increase will give you the lowest result.  A more valid method would be to take
an average of the intermediate years, which would show a result of around
$41.00 to $42.00 annual dues.
	Having taken you through this mathematical exercise demonstrating that the
requested increase is too high, I must now return us all to the real world.  We
really do need the dues increase if American Mensa is to survive in anything
close to its present form.
	The following data for fund balances were taken from the audited financial
statements for the various years.

			Year		Total	Cumulative
			Ended	Fund	Gain or	Loss Since
			3/31	Balances	(Loss)	3/31/87
			1987	$779,179
			1988	689,518	($ 89,661)	($ 89,661)
			1989	584,319	(105,199)	(194,860)
			1990	602,039	17,720	(177,140)
			1991	431,064	(170,975)	(346,115)
			1992	284,855	(146,209)	(494,324)

	Since March 31, 1987, we have lost almost two-thirds of the funds accumulated
since American Mensa, Ltd. was founded in 1960.
	Of the $284,855 shown in the funds balance at March 31, 1992, approximately
$135,788 is tied up in the old computer system which we are presently in the
process of replacing (part of the reason given for needing the large dues
increase).  Another $60,672 is in other Fixed Assets (office equipment and
leasehold improvements which are not available to pay the bills).  The dues
increase is not scheduled to take effect until April 1, 1993, and if we have a
loss approaching $100,000 in the current year, we will not have the money
available to pay the bills in the last few months without borrowing from the
next fiscal year.
	Over the last few years, our leaders have made a number of serious errors.  My
personal list would include:
	- Failure to address the exorbitant cost of the computer system several
hundred thousand dollars ago.  By 1987, it was obvious that the Hewlett Packard
3000 minicomputer was a dinosaur which should be replaced, yet we have spent
well over $300,000 since that time in upgrades to the hardware and software. 
Now we are finally talking about a new system, after we have spent all our
funds.
	-  Failure to address the horrendous cost of maintaining the national office
in New York.  Salaries and related expenses went from $546,094 in 1991 to
$625,165 in 1992, an increase of 14.5%.  Rent, utilities, cleaning and
maintenance went from $117,155 in 1991 to $125,075 in 1992, an increase of 6.8%
 Using 1990 census statistics, wages in the following areas would have been
lower by:

			Atlanta	27.8%  $173,795 annually
			Dallas	23.4%  146,289 annually
			Denver	29.3%  183,173 annually
			Houston	23.4%  146,287 annually
			Oklahoma City	40.2%  251,316 annually
			St. Louis	29.6%  185,049 annually

	Using 4,00 square feet of office space (from 1985 Notes to Financial
Statement), we are paying $31.27 per square foot for our office space.  I have
no ready source of rent rates in other areas, but in Oklahoma City, adequate
office space can be leased for $9.00 per square foot including utilities, taxes
and janitor service.  This would effect a savings of almost $90,000 a year.  An
office building in Oklahoma City can be purchased for $25.00 per square foot,
with operating costs of less than $5.00 a foot -- less than we are paying for
annual rent in New York.
	- Failure to properly husband the Life Dues Fund.  I understand that we have
received legal opinions that there is no legal requirement to segregate these
funds, but we have a moral obligation to refrain from squandering them.  The
institutional advertising campaign was akin to doubling your bets when you
start losing at the Blackjack table.
	Yes, we need a dues increase to survive.  But even more important is a change
in the administration.  Our present AMC is a large part of the problem.  Nearly
all of them have been participants, either actively or passively, in bringing
us to our present perilous state.  If we don't get a change in administration,
or a change in direction of the present administration, we are throwing good
money after bad.  

Newsgroups: rec.org.mensa