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Anton Kovalyov in an article on "Spraggett on Chess" website
Doubling the membership fees without increasing services in a way that is meaningful to the average member would be a suicidal course of action in my opinion. Doubling the membership fees could cut in half the number of people willing to join the CFC if the demand follows a normal downward sloping demand curve. This in turn would cut rating fees in half so you might even see a decrease in net income as a result depending on the slope of the demand curve.
When the CCCA did it we lost maybe 5 per cent of the members. Over the next few years the membership grew considerably. The CFC's part of the membership (without the provincial tack on) would mostly make the membership increase less than double.
If the organization doesn't need an increase in revenue then maintain the current fee status.
When I see an organization which is changing the president almost every year it looks to me like there's a problem. In this case my guess is there isn't enough money to fund the programs.
The CFC adult membership fee of $38. a year plus provincial dues is a joke. One chess lesson probably cost almost that much if not more.
...
The CFC adult membership fee of $38. a year plus provincial dues is a joke. One chess lesson probably cost almost that much if not more.
Determining the price point of a CFC membership is tricky. It all depends on perceived value.
Prospective members always ask the question 'what do I get for my CFC membership fee?'
At the moment, there are two items I can think of:
1. the potential to get tournament games rated by the CFC
2. the CFC newsletter
Other more intangible points like 'good karma from being in an association of chess players' and the like are non-starters in my opinion.
Re: Anton Kovalyov in an article on "Spraggett on Chess" website
Kerry, don't forget FIDE ratings. CFC has the FIDE lemonade stand.
I don't know a single adult who would go to a church, as an example, 10 times a year and only leave a total of $38. on the collection plate. That amount is insignificant.
One thing I found with doubling the membership fee with CCCA was the dropout rate fell. There were less people joining and doing silent withdrawals which tended to ruin the event for the other players. To be clear, the decision wasn't mine alone. The executive had to agree.
If the CFC feels the current rates are enough to run their programs and carry out their mandate to promote chess chess that's great. Otherwise they should do the right thing and increase the fees and also the life membership fees so they do have enough money.
It's OK to run an organization conservatively. However, it's necessary to set membership fees prudently and look to the future.
Kerry, don't forget FIDE ratings. CFC has the FIDE lemonade stand.
Ah yes, the FIDE aspect ... and IllusionOf keeps changing the playbook. Some tournaments are FIDE rated (or perhaps some sections are FIDE rated) provided the tournament is registered well in advance with the mother ship and the arbiter/TD has paid his fee to FIDE etc. Too much BS in my opinion. But, I'll grant you that point: if you want to play in FIDE rated events in Canada you need a CFC membership to get that.
Edit: I put that "in Canada" part at first, but then I wondered: if I wanted to play in a tournament in Europe (say), is it required that I be a member of my home federation?? Is that a FIDE requirement?
Last edited by Kerry Liles; Monday, 10th February, 2014, 05:42 PM.
Reason: follow up question
Re: Anton Kovalyov in an article on "Spraggett on Chess" website
I hear what you're saying but if you can afford to travel to Europe to play in FIDE events does an extra $38.00 a year for an adult CFC membership really hurt that much?
Prices go up. I wouldn't mind replacing Beware for under $1,000. but it's not gonna happen. Costs go up.
Re: Anton Kovalyov in an article on "Spraggett on Chess" website
The CFC is not the only national organization that has an issue of perceived value. Look at Scouts Canada.
To have your son join scouts you have to pay $165/year. Of that, only FIFTEEN DOLLARS stays with your local troop. The rest goes to the Scouts Canada head office.
When you has what Scouts Canada actually does with that money, at best you will get a shrug from the local scout leaders. it's not for the badges, clothing and so on. You have to buy those.
Meanwhile you have to raise money for the local troops with apple day, dinners, etc.
Re: Anton Kovalyov in an article on "Spraggett on Chess" website
When the government auditor spent that day with us at the CFC, I also discovered that there was a correct and legal way to issue tax receipts for expenses. The matter involved Phil Haley, our FIDE Representative at the time. What Phil had to do to receive a tax receipt for expenses to a FIDE meeting was simple. He had to submit to the CFC receipts of all of his expenses, and a cheque made out to the CFC in the amount of those expenses. The CFC was then able to issue him back a cheque in the amount of those expenses, along with a tax receipt.
When the government auditor spent that day with us at the CFC, I also discovered that there was a correct and legal way to issue tax receipts for expenses. The matter involved Phil Haley, our FIDE Representative at the time. What Phil had to do to receive a tax receipt for expenses to a FIDE meeting was simple. He had to submit to the CFC receipts of all of his expenses, and a cheque made out to the CFC in the amount of those expenses. The CFC was then able to issue him back a cheque in the amount of those expenses, along with a tax receipt.
This seems to be completely at odds with information earlier that you can not issue tax receipts that are "directed" at an individual?
This seems to be completely at odds with information earlier that you can not issue tax receipts that are "directed" at an individual?
Gents; With the last answers, we are getting a little bit close to the one of the crucial questions, aren't we? It seems that some of the things are not that complicated.
When the government auditor spent that day with us at the CFC, I also discovered that there was a correct and legal way to issue tax receipts for expenses. The matter involved Phil Haley, our FIDE Representative at the time. What Phil had to do to receive a tax receipt for expenses to a FIDE meeting was simple. He had to submit to the CFC receipts of all of his expenses, and a cheque made out to the CFC in the amount of those expenses. The CFC was then able to issue him back a cheque in the amount of those expenses, along with a tax receipt.
Brad, with all due respect, I think you have misconstrued what the auditor has told you.
In this scenario, a tax receipt can be issued, but it is because Phil has issued a cheque to the CFC, not because he has expense receipts for FIDE meeting.
To clarify, break it down into 2 transactions:
Phil has $XXX in expenses to FIDE meeting: CFC pays Phil $XXX to reimburse him.
Phil gives CFC cheque for $YYY: CFC gives Phil tax receipt for $YYY.
Brad, with all due respect, I think you have misconstrued what the auditor has told you.
In this scenario, a tax receipt can be issued, but it is because Phil has issued a cheque to the CFC, not because he has expense receipts for FIDE meeting.
To clarify, break it down into 2 transactions:
Phil has $XXX in expenses to FIDE meeting: CFC pays Phil $XXX to reimburse him.
Phil gives CFC cheque for $YYY: CFC gives Phil tax receipt for $YYY.
If perhaps $XXX = $YYY, that is irrelevant.
I'd never heard this explanation before. I'm disappointed.
Edit: I put that "in Canada" part at first, but then I wondered: if I wanted to play in a tournament in Europe (say), is it required that I be a member of my home federation?? Is that a FIDE requirement?
I believe that it is a requirement though if someone has a FIDE number already they probably don't check for CFC membership. The CFC office routinely gets requests for FIDE numbers for people who we have never heard of, or haven't heard from for a number of years. They do have to become CFC members before we jump through the hoops and issue the required number.
I did see a lawyer on getting a National charitable status. Essentially (if my memory is still good)...we would have to wind down the CMA and re-incorporate Nationally as a charity. All I remember is that is was very complicated and there were no guarantees. Gary Gladstone (AN AWESOME GUY!) has been very helpful (and patient with me! :) on this matter.
Larry
Hi Larry:
I totally agree that Gary Gladstone is a great guy and definitely knows what he's talking about with respect to this issue. (Thus you should stop reading now.)
I wasn't sure whether CMA was a charity (or associated with one) or not. It does get complicated. Typically you have to keep two sets of books: one for the charity and one for the operating side of the organization. Money is received by the charity in the form of donations (with appropriate tax receipts) and it has to be dispensed for the stated purpose of the charity (for example the Canadian Cancer Society cannot decide it is going to spend all of its donations saving dolphins). Where the money goes has to be tracked and it does have to be demonstrated that it was spent in accordance with the mandate of the charity.
The separation of the books is important (otherwise you're not a charity but just another corporation), and as I said, be careful about saving dolphins (or sending "observers" to sunny climes to "study" the dolphins). I'm sure once you're up and going as an organization, doing a conversion to a charity would be difficult from an accounting and "corporate entity" standpoint, but not impossible.
I have little doubt that the CFC lots its charitable status because it couldn't demonstrate it was really a charity any more, particularly with "education" being its mandate.
Targeted donations are a big no-no, but there are *some* ways around them. For example, if the CFC (operating as a charity) were to state that it needed to raise money to fund an Olympic team, I could give a donation for this "targeted purpose" and they would issue me a tax receipt. If I said the money was *only* to be used for the Olympic team, I would probably still get the receipt assuming that they completely intended to send a team. If I further stipulated that they must include my son William on the team (CMA rating around 500) they would (or should) tell me to get lost.
Carrying the previous example back to this thread: If the CFC had never even thought about funding an Olympic team and I suddenly said "Hey guys, I'll give you a donation if you send a team", I would expect them to properly consider it and then make up their minds. If I said "Hey guys, I'll make a donation if you fund a team of 1 and my kid is on it", I would expect them to tell me to take a hike.
Steve
P.S. I don't know all the history of the politics that have gone on over the years. What I do know is that I wish the CMA had been around when I was in my early teens. You guys have been great for my kids learning chess and the sheer number of kids tournaments that exist in Toronto is testament to that.
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