Raising your membership dues is just a fact of life. You know that, but it doesn’t mean your members like hearing it. As such, you have to break it to them gently. That’s where an impactful membership dues increase letter comes in. It’s not as easy as simply announcing hikes in your membership dues, unfortunately. You need to craft a careful letter that explains your reasons effectively, while simultaneously reiterating the importance of your cause. The good news is there’s a template for that. Common reasons for membership dues increase Before we take a look at two great templates for your membership dues increase letter, we must first ask: why do dues increase? Get clear on this, because if you’re not, you’ll never be able to explain it to your members’ satisfaction. Among the most common reasons are: Inflation: Things cost more over time, plain and simple. This immovable axiom is eventually going to make its way into the inner workings of your nonprofit, professional association, or member-based organization. New products or services: Sometimes you need to expand your programs, and you need money to do it. As long as they align closely with your mission, you shouldn’t worry about asking your members to help you pay for it. Increasing advocacy: Do you need to expand your existing programs, employ legal services on behalf of your community, or otherwise increase advocacy? That will probably mean a dues increase as well. Growing your organization: If you’re employing more people, opening more centers, and serving a larger community, that’s a great reason to ask for more money from your members. And don’t worry: members totally expect periodic increases in the amount they have to pay to be a part of your organization. In fact, if you raise your dues by 10% or less, you shouldn’t see much attrition. It’s only when the increase exceeds 10% that you might lose buy-in, so keep it below that number and you’ll keep getting positive responses on your renewal letters. Even if you feel you need more money than this, consider carefully before raising your rates more than 10%. A big jump in needed revenue usually correlates with a push to build new spaces, hire new people, or start new programs (or perhaps all three at once), which is admirable. Still, people want the option to pay for it, so you should look to other fundraising efforts instead. Of course, you also have to present your case to your members in the right way, which is where the following tips come in. 6 tips for announcing a dues increase to your members When you go to write your membership dues increase letter, there are several things to keep in mind. People want to feel valued individually, understood emotionally, and empowered to choose a payment style that works for them. The following six tips will help you give them that. 1. Contact them directly Everyone knows when they’ve been sent a form letter, and nobody likes it. For that reason, the first and more important aspect of your membership dues increase letter is that it must be highly individualized. You need to contact the member directly, refer to them by name, and include any other pertinent information about their participation in your program or organization. If you are a small organization, then you should input an individualized sentence in the beginning of your letter to make it clear you know who you’re talking to. If you are a larger organization that has thousands of members, this becomes impossible. That’s when you need to use good audience segmentation to make sure the right language makes it into each member letter. 2. Let them know well in advance Do not send a membership dues increase letter after you’ve already debited a larger amount from your members’ account. That leads to frustration and feelings of disrespect on their part. You want to send them the letter far enough in advance that they could opt out before being charged, so send your letter at least a month in advance … ideally, a few months. Know that it’s natural to wait too long, usually because organizations fear that a dues increase will correlate with a drop in membership and therefore a drop in income. Happily, that’s really not true. As stated above, any increase of 10% or less is unlikely to make real waves. And remember, a dues increase does lead to a jump in revenue. So set aside the fear and just announce the shift. You’ll be glad you did. Plus, once you find a letter structure that works, you won’t have to reinvent the wheel next time. 3. Explain the reasoning behind the dues increase People like knowing what they’re paying for, and that includes knowing what they’re paying more for. If you’re going to raise your rates, you need to do it clearly in the membership dues increase letter. It’s not really enough to wave in the general direction of inflation as an excuse, either. You can use language such as “to maintain the high quality of our programs” or “continue to serve our community to the best of our ability,” but ideally you will get specific about what you’re going to do with the funds. More about this in the sample templates, below. 4. Offer flexible dues structures to maintain inclusivity Not everyone can afford the same dues, which is why membership models differ depending on finances and needs. Your membership dues increase letter should reflect this, letting people know that you will honor any tiered or sliding scale pricing that was in place before, but that it might be at a higher level. If you will still offer membership benefits to people on scholarship, make that clear. Otherwise you may frighten those who can’t pay for it, losing their buy-in or potentially even creating a social media fire you’ll have to put out. 5. Don’t turn your dues increase into a whole thing Ideally, you’ll slip your membership dues increase letter into the general flow rather than making it a Whole Big Thing. If it’s a big announcement, then people will have big thoughts: Is the dues increase really worth it? Do you deserve it? Can they afford it? Should they be spending their money elsewhere? And so on. Instead, your letter should read like a necessary and expected, yet nevertheless fairly trivial, change. You want people to read it and think “Oh, that makes sense,” before recycling the letter and moving on with their day. That way, you’ve given warning but not cause to question your, well, cause. 6. Allow opportunity to reach out with further questions or concerns Don’t confuse wanting to minimize the reaction to your letter with wanting to slip it past people unnoticed. If folks feel you’re trying to do this, they will react negatively. Provide contact information for readers to use if necessary and make it clear that you welcome their input. Make sure to personalize your information as well. Your increase letters should come from a specific person at your organization, with a name and title followed by the name of your organization, email address, and phone number. Most people will regard this as unremarkable, but comforting, giving them a feeling of agency. How to write a dues increase letter All right, it’s time to write your membership dues increase letter. This will seem like a big task at first, so if you’re feeling a little overwhelmed, that’s okay. Here are a few steps that will help you make the most of your letter and keep your members’ interest. Be clear and concise Any time you sit down to write a membership dues increase letter, the temptation is to tell your whole dang story. Here’s why we started … here’s what it was like … here’s who we helped … here’s who we are now … here are all our hopes, dreams, and fears in one letter. Happy reading! This is not the right approach. This kind of messaging is important, and it should definitely exist on your website, in your newsletters, and in fundraising materials. In your letter, the only item from the list above that deserves attention is how you will use the money and who will benefit. Do not let brevity be the enemy of clarity, though. You should still take the time to explain exactly how the dues increase will impact your ability to make positive change. Perhaps more importantly, you should explain whom this dues increase will help. According to research by the John Templeton Foundation at the University of California, “For example, people are much more likely to help an identified, specific person rather than an abstract or anonymous individual, and they’re more likely to help individuals than groups.” Be empathetic One item you must include in your membership dues increase letter is recognition that your members will have to bear the brunt of your need for more funding. Even if it’s a totally reasonable increase of 3-4%, only in line with inflation, nobody likes spending more money than they have to. As such, be sure to include language that reflects back their concern and gives them something to do about it – e.g. flexible dues structures or contacting your team. Don’t apologize You do need to explain yourself and acknowledge that money is a concern for everyone; you do not need to apologize. Saying you’re sorry in a membership dues increase letter will lead people to wonder why. After all, we only apologize when we’ve done something wrong, right? So instead of falling all over yourself to defray potential emotional reactions, simply tell the truth of why you are raising prices, even if that’s only to keep your programs sound in a changing economy. This will tell people that you’re not raising prices simply for the sake of raising them (because you can or think you “should”) but rather because their continued support will lead to real change in the world. Have more than one person review it It’s very hard to catch your own typos. That’s where other people come in. Before you send your membership dues increase letter to the printers (or figurative printers), make sure you have multiple people review it. Do a content round first, then an editing round. That way, you can fix major messaging errors before fine-tuning the copy. Send a follow up Never send just one membership dues increase letter. Many people will miss it, whether you use paper or email, and could feel blindsided when they see the increase in their bank account. You don’t want that to be the first they hear of the increase, so make sure to send a follow-up letter after the first one. This letter should also leave plenty of cushion before the increase. It’s smart to send your first one out several months beforehand and your second with at least one month to spare. Dues increase letter sample templates Ready to get that membership dues increase letter in the pipeline? Here are two samples from which to choose: a general template and a benefit driven template. The former works for all nonprofits and member organizations, while the latter is perfect for groups that offer specific perks to those who pay. Feel free to use one or both in their entirety! Sample 1 – General Dues Increase Letter [Association Name][Association Address][City, State, Zip Code] [Date] [Member’s Name][Member’s Company Name][Member’s Address][City, State, Zip Code] Dear [Member’s Name], We hope this letter finds you well. As a valued member of [Association Name], we deeply appreciate your ongoing support and commitment to our association and the industry. We are writing to inform you of an upcoming change to our membership dues. After careful consideration and a thorough review of our financial requirements and the services we provide, the Board of Directors has decided to increase the annual membership dues. This adjustment is essential to ensure that we can continue to deliver the high-quality programs, advocacy, and resources that our members expect and deserve. Effective Date: [Effective Date of New Dues]New Annual Dues Amount: [New Dues Amount]Previous Annual Dues Amount: [Previous Dues Amount] This increase will enable us to enhance our current offerings, including [mention specific programs, services, or benefits that will be improved or added], and to continue our efforts in advocating for the interests of our members on a local and national level. We understand that any increase in dues may be a concern, and we want to assure you that this decision was not made lightly. Our goal is to provide exceptional value for your membership, and we believe that the additional resources will significantly benefit you and all our members. If you have any questions or would like to discuss this change further, please do not hesitate to contact [Contact Person’s Name] at [Contact Person’s Email] or [Contact Person’s Phone Number]. We are here to address any concerns you may have and to ensure a smooth transition. Thank you for your continued support and involvement in [Association Name]. We look forward to serving you in the coming year and working together to advance our industry. Sincerely, [Your Name][Your Title][Association Name][Your Email Address][Your Phone Number] Sample 2 – Benefit Driven Dues Increase Letter [Association Name][Association Address][City, State, Zip Code] [Date] [Member’s Name][Member’s Company Name][Member’s Address][City, State, Zip Code] Dear [Member’s Name], We hope this letter finds you well. As a valued member of [Association Name], we deeply appreciate your ongoing support and commitment to our association and the industry. We are writing to inform you of an upcoming change to our membership dues. After careful consideration and a thorough review of our financial requirements and the services we provide, the Board of Directors has decided to increase the annual membership dues. This adjustment is essential to ensure that we can continue to deliver the high-quality programs, advocacy, and resources that our members expect and deserve. Effective Date: [Effective Date of New Dues]New Annual Dues Amount: [New Dues Amount]Previous Annual Dues Amount: [Previous Dues Amount] This increase will enable us to enhance our current offerings and introduce new initiatives aimed at providing even greater value to our members. We are committed to supporting your success and growth, and we are excited to share some of the specific benefits your membership will continue to provide: [Benefit 1]: [Brief description of benefit 1, e.g., “Access to exclusive industry research reports and data.”] [Benefit 2]: [Brief description of benefit 2, e.g., “Discounted rates for our annual conference and events.”] [Benefit 3]: [Brief description of benefit 3, e.g., “Participation in specialized training and professional development workshops.”] [Benefit 4]: [Brief description of benefit 4, e.g., “Opportunities to network with industry leaders and peers.”] [Benefit 5]: [Brief description of benefit 5, e.g., “Advocacy efforts on behalf of the industry at the local, state, and national levels.”] These benefits, along with many others, are designed to provide substantial value and support to our members. We are committed to continually improving and expanding our offerings to meet your needs and help you achieve your professional goals. We understand that any increase in dues may be a concern, and we want to assure you that this decision was not made lightly. Our goal is to provide exceptional value for your membership, and we believe that the additional resources will significantly benefit you and all our members. If you have any questions or would like to discuss this change further, please do not hesitate to contact [Contact Person’s Name] at [Contact Person’s Email] or [Contact Person’s Phone Number]. We are here to address any concerns you may have and to ensure a smooth transition. Thank you for your continued support and involvement in [Trade Association Name]. We look forward to serving you in the coming year and working together to advance our industry. Sincerely, [Your Name][Your Title][Association Name][Your Email Address][Your Phone Number] How to increase membership dues without losing members Hopefully, you have a greater sense of why a good membership dues increase letter template is helpful to your cause, and how you can send one out without losing your audience. The key takeaways include: Membership dues increases happen for many reasons, including inflation, new products and services, increasing advocacy, and growing your organization. All are legitimate. When announcing your dues increase to members, contact them directly and give them plenty of time to make changes if they need to. With enough warning and by keeping your increase to 10% or less, they probably won’t. Explain your reasoning and especially whom the dues increase will benefit. Be clear, concise, and empathetic without being apologetic. Saying sorry makes people wonder what you’ve done to require an apology, so it’s not a good approach. Send a follow-up letter after the initial missive. That way, you can make sure to catch those who didn’t see your announcement the first time so that they don’t feel caught off guard. There’s no shame in using templates! One of the best ways to simplify your membership tasks, from dues increase letters to fundraising and building an online community, is to use MemberClicks. Want to learn more? All you have to do is get in touch with our team and book a demo today!