A Guide to Dues Renewal Invoicing

May 17, 2011

Table of Contents

A Guide to Dues Renewal Invoicing1

Why Invoice?1

When Should the Chapter Invoice?1

How Many Invoices Should a Chapter Send?2

How Can an Invoice “Re-Sell” the Association?3

Involving Members in the Renewal Process4

Congratulations! Your Members are Renewing. Now What?4

Stay on Track!4

Appendices

A - Sample Year in Review Letter6

B - Sample Cover Letter: Invoice #17

C - Sample Cover Letter 2: Invoice #28

D - Sample Cover Letter 4: Invoice #3-A9

E - Sample Cover Letter 5: Invoice #3-B10

F - Sample Cover Letter 6: Final Notice11

G - Sample Invoice #112

H - Sample Invoice #213

I - Sample Invoice #314

J - Sample Invoice #415

K - Sample Letter: Thank You for Renewing16

A Guide to Dues Renewal Invoicing

Member retention is one of your most important chapter activities. And a key element in any retention plan is dues invoicing. Members consider two factors when deciding whether or not to renew their membership: perception and usefulness. If a member determines that a product or service has been easy to obtain and has met his or her needs, then that member will perceive his membership as being valuable and, in all likelihood, renew.

The purpose of dues invoicing is to collect fees for services provided. The invoicing process also offers a chapter the opportunity to remind members of what the chapter has accomplished and how members may gain even greater benefits through their membership. If properly planned, dues invoicing can be an effective and profitable retention tool.

This guide will show you how to develop an effective invoicing process to improve your chapter’s retention efforts. It answers many frequently asked questions and provides sample letters and invoices to make your chapter’s invoicing process simple and effective.

Why Invoice?

Invoicing chapter members for services provided is a formal means of requesting payment. Invoicing offers a chapter several opportunities:

  • Invoices are an excellent vehicle for reminding members of the benefits and services they receive as members. “What Have We Done for You Lately” information sheets and messages on invoices are terrific reminders.
  • Invoicing early will enable a chapter to identify endangered members and focus renewal efforts in these areas.
  • Early dues collection will improve your chapter’s cash flow, allowing you to better serve your membership.

When Should a Chapter Invoice?

Your chapter’s invoicing schedule may be determined by the size of your chapter and its resources. Some larger chapters begin invoicing as early as three months prior to the end of the fiscal year.

As a general rule, a chapter should begin invoicing six to eight weeks prior to the start of the chapter’s fiscal year. This will permit time for multiple mailings and direct member contact.

How Many Invoices Should a Chapter Send?

A chapter should invoice at least four times. Invoicing may be structured as follows:

The Year in Review

First contact may be a letter from your president highlighting the successes of the chapter over the last year. This letter should be sent two to three weeks before you mail your first invoice. This letter puts your chapter’s accomplishments in front of the members early so that they begin thinking about you. See page 6 for a sample letter.

Invoice # 1 -6 - 8 weeks prior to the start of the chapter’s fiscal year

  • Cover letter from the president
  • Fact sheet with membership benefits
  • Standard invoice indicating ‘First Notice’
  • Return envelope, if possible

See page 7 for a sample letter and page 12 for a sample invoice.

Invoice # 2 - 14 - 21 days later

  • Cover letter from the president or president-elect tailored to a second notice
  • Standard invoice, indicating ‘Second Notice’ and ‘Please disregard if paid. Thank you.’
  • Return envelope, if possible

See pages 8 for a sample letter and page 13 for a sample invoice.

Invoice # 3 – 14 - 21 days later

This mailing should be sent only to those firms from which the chapter has not received payment. The notice should be sent approximately three weeks after the second notice mailing.

  • Cover letter from the membership chair tailored to a third notice
  • Benefits sheet/calendar illustrating upcoming events and programs
  • Standard invoice, indicating ‘Third Notice’
  • Return envelope, if possible

See pages 9-10 for sample letters & page 14 for a sample invoice.

Invoice #4 - This is a final notice to those members who have not paid their chapter dues within 30-45 days of the beginning of the chapter’s fiscal year.

  • Cover letter from the president indicating that benefits will be forfeited immediately
  • Standard invoice indicating ‘Final Notice’
  • Return envelope, if possible.

See page 11 for a sample letter and page 15 for sample invoice.

A Few Extra Tricks

  • Send one invoice by e-mail. This might help if a member has buried the invoice in his/her “pile.”
  • Address one invoice to Accounts Payable, rather than the designated contact. This might help get the invoice in the company’s payment system.

  • Distribute invoices at chapter meetings.
  • Hand deliver an invoice to members at their offices.

How Can an Invoice “Re-sell” The Association?

Think of dues invoicing as a marketing opportunity. With an appropriate cover letter and support material, an invoice may be the best way to illustrate the value of ASA membership.

Cover Letters

Use a cover letter to your chapter’s advantage. Thank members for their participation and support. List the chapter’s accomplishments during the past year. Try to make your letter personal. How have these accomplishments benefited the member, saved him/her money or contributed to his/her knowledge of the industry? Most importantly, ask for their dues payment as soon as possible.

The cover letter should be adjusted for each mailing. Phrases such as “We would hate to lose you,” or “Where did we go wrong?” are good opening phrases for a second or third invoice mailing.

Benefits

What Have We Done for You Lately? Use a benefits sheet to remind the member of the many ways his/her membership has been of value. See NUCA’s model in the Chapter Toolbox on the NUCA Web site.

NUCA Profit Calculator. Use this worksheet to remind members of their return on investment through the chapter’s programs. See NUCA’s model in the Chapter Toolbox on the NUCA Web site.

Invoice

Use a standard invoice. The invoice should include the company name, address and contact, the amount due, and the phrase “due upon receipt.” This encourages the member to make his/her payment decision while your presentation is still on top of his/her desk!.

When preparing your dues invoices don’t forget to include the required legal notice about the amount of dues used for lobbying purposes that a member may not deduct as a business expense for federal income tax purposes. Under the law, such lobbying expenditures include the cost of attempting to influence legislation at the federal and state levels (but not the local level), as well as the cost of attempting to influence actions or positions of certain high-level federal administrative officials. Each year, NUCA will provide you with the percentage of national dues that is not deductible for lobbying purposes. You must calculate the lobby tax for your chapter’s activities add that to the national amount and include the total on your dues invoices. For more information on the IRS lobbying notice requirements, go to the Chapter Toolbox on the NUCA Web site.

Involving Members in the Renewal Process

Members play an important role in dues invoicing and the renewal process. Your membership team should participate in the planning and implementation of the invoicing process. Perhaps, the most important role that your membership team can play is in indentifying and then making personal contacts with members who are “at risk” for non-renewal.

Identifying Endangered Members

Before you even begin the invoicing process, have your membership team review the chapter roster to identify endangered members. Endangered members may include:

  • Firms that do not have representatives who participate in chapter activities.
  • Firms whose decision maker does not participate in chapter activities.
  • Newer members.
  • Firms who are struggling for business.
Reach Out and Touch Someone!

Once you have made a list of endangered members, your membership team should identify a champion for each such firm. A firm’s champion may be its original membership sponsor, a friend, a competitor, a customer, someone who knows the decision maker well, or just someone who’s willing to take on a challenge.

Each champion should be charged with calling his assigned members. The purpose of this call is to remind the member why he joined PUCA in the first place, focusing on PUCA’s basic value proposition and recent accomplishments. The champion also should listen, inviting feedback and comments. The champion’s goal is to get a commitment from the member that he/she intends to renew the firm’s PUCA membership.

Congratulations, Your Members Are Renewing! Now What?

Say thank you! Send a personalized letter to each member who renews thanking him or her for prompt payment. Include a calendar of upcoming events and a listing of ways members can become involved in chapter activities or access benefits. See page 16 for a sample letter.

Stay On Track!

Follow the guidelines set out in this workbook to help you make the most of your renewal period. Step up your efforts to target high-risk renewals. Encourage members to become active in the renewal process by making phone calls and talking to members who may be considering dropping their memberships.

Here are a few more suggestions to leverage your existing programs:

  • Use your April, May and June newsletters to highlight chapter successes, member benefits and future plans.
  • Highlight member benefits at your regional meetings and educational programs. Have a member give testimonials on how the chapter has helped their businesses.
  • Thank early renewals at chapter meetings and in the chapter newsletter. Let your members see which firms believe their PUCA membership is a worthy investment.
  • Update the chapter’s board of directors, membership committee members and top recruiters about the progress of chapter renewal efforts. Ask them to follow up with endangered members.

Appendix A

Sample Year in Review Letter

April ##, 2009

Name

Company

Address

City, State, Zip

Dear Nickname:

The last year has been one of hard work and solid success for [insert chapter name]. Many significant decisions were made and important actions taken. As the year draws to a close, I want to invite you to join me in celebrating these accomplishments and the intensive efforts of the individuals involved – volunteers and staff -- who brought about these and other successes.

The enclosed fact sheet provides a short reminder of your benefits as a member of [insert chapter name]. [insert chapter name] is, indeed, poised for today’s construction challenges. If you need timely information, education and the support of a strong peer network, [insert chapter name] is your association.

In just the last 12 months, [insert chapter name] has offered you:

  • Intensive workshops on risk management and project documentation.
  • Informative articles on marketing, insurance and jobsite meetings.
  • Timely links to new products and services through our Web site.
  • Valuable information about new legal precedents affecting <state> subcontractors.

This impressive list serves as a reminder that, although [insert chapter name] has forged ahead with vigor, it seems we have hardly begun to deal with those issues that are important to us as construction contractors and suppliers.

As we look ahead to the challenges we must face, [insert chapter name] is committed to offering contractors the best in education, government advocacy, industry liaison, education and networking. At the same time, [insert chapter name]’s volunteer leaders are evaluating ways to use available resources (member volunteer time, staff and funds) more effectively, and to identify the opinions, interests and needs of you, our member. We hope you will support our efforts through your continued membership, time and talents.

Best regards,

[insert name]

President

Enclosures

Appendix B

Sample Cover Letter: Invoice #1

May ##, 2009

Dear PUCA Member:

I think you’ll want to renew your membership as soon as possible when I tell you the exciting things we’re planning in [insert chapter name] for the next year.

As always, you’ll get the [name of newsletter], full of practical information on how to make your business more profitable. Right now, we’re putting the finishing touches on [a few article titles].

In addition, you’ll have access to factual information on the current contract and credit practices of your prospective customers in the [insert city/region]. It’s a fact that regular use of [insert chapter name]’s Business Practices Interchange can help reduce your risk and increase your profit.

You’ll also have an opportunity to learn about the latest trends in the construction industry and how you can make them work for your business through our [ insert quarterly,semi-annual,periodical] educational programs and other special workshops and seminars. We’re currently planning workshops on [insert topics].

And don’t forget the power you have when your voice is joined with other construction contractors and suppliers in the [insert region], in the state capital and across the nation. [insert chapter name], in conjunction with other NUCA chapters in [insert state, if appropriate] and our national organization, speaks out for you every day before the government entities that can so effect your business. Our focus continues to be on legislation that will help assure that you get paid promptly for work properly performed.

These are just a few of the many benefits you’ll continue to receive as a member of [insert chapter name]

So why not pick up your pen and send in your renewal now, while it’s still fresh on your mind. That way you won’t have to miss a single article in [newsletter], a single educational opportunity, or a single scoop on the newest general contractor in town.

Sincerely yours,

[insert name]

President

Enclosures

Appendix C

Sample Cover Letter: Invoice #2

May 26, 2011

Name

Company

Address

City, State, Zip

Dear ______:

You are inundated with obstacles that tap your company’s resources and drain your energy. Dealing with unfair contracts, avoiding undue risk and getting paid are hassles you don’t have to face alone. Renew your NUCA/PUCA membership today to receive the information you need and the support of a network of specialty trade contractors committed to making construction a fair and profitable business.

PUCA members have organized a wealth of benefits that will help you defeat your greatest challenges. Here is a list of some of the programs and services PUCA will offer you in the upcoming year:

  • Cutting-edge education on contracts, retainage, lien laws and negotiating tactics that will build your knowledge, skills and business savvy.
  • Monthly business tips and the latest industry news and association updates that will help you prepare for tomorrow’s projects today.
  • Opportunities to meet your construction industry peers and share knowledge about the construction industry in Pennsylvania.

Don’t wait! Your membership is about to expire. Please take this opportunity to renew your membership and reap the benefits NUCA/PUCA members’ experience. You and your business will profit from your association with a trade association who fights for you and your issues.

Sincerely,

Ralph Mase

PUCA Past President

Enclosures

P.S. Use your membership today! Register for PUCA’s Special Event at the Omni Bedford Resort, Bedford, PA.

Appendix D

Sample Cover Letter: Invoice #3-A

June ##, 2009

Dear PUCA Member:

We would hate to lose you! Your membership in the [insert chapter name] will expire soon. Please take a moment to consider the many [insert chapter name] benefits that contribute to the success of your business every day.

  • Education programs and seminars like our recent crane operators and rigger & signal training to increase your business’ productivity and profits.
  • PUCA Knowledge Base holds information to save your firm both time and money.
  • Semi-Annual newsletters with up-to-date PUCA and industry news to keep you informed of issues and events.
  • Representation at the state capital and in Washington D.C. to improve the business environment for underground contractors and suppliers.

PUCA is a valuable part of your overall business plan. I hope you will take this opportunity to return the enclosed invoice with your check in the envelope provided. We look forward to providing you with the services you need in the upcoming year.