2024 Dues Increase Frequently Asked Questions
Why does CAR need to increase dues?
CAR has not increased general dues since 2015. In the years since, the cumulative rate of inflation in the US has hit 27%. In some areas, such as meetings and events, we have seen even higher spikes. These increased costs have affected every aspect of CAR and every service we provide. Significant growth in membership over the last several years has allowed CAR to temper some of the widening gap between revenue and expenses, but membership is unlikely to continue to grow at a significant rate, meaning CAR’s revenue will not be able to keep up with increasing costs. This will make it difficult to impossible for CAR to maintain a balanced budget without cutting services.
What steps were taken to arrive at proposing a dues increase?
The 2023 budget process, which took place in July 2022, left CAR struggling to arrive at a balanced budget. This led CAR’s President and Leadership to form a Financial Sustainability PAG (Presidential Advisory Group) for 2023. The PAG was made up of CAR’s Finance Committee and other members from across the state. CAR’s President worked with CAR staff to select PAG members that would represent the diversity of boards and members across Colorado. This PAG was tasked with looking at all aspects of CAR’s spending and revenue, the current state of CAR’s membership and the real estate industry in general, and how CAR could best position itself to maintain its financial health in the future.
This PAG met several times in early 2023. They reviewed financial documents and looked at the viability of alternate revenue sources. While the PAG found that CAR is financially sound, it was determined that, with inflation and its effect on every aspect of what CAR does, a dues increase would be crucial to ensuring that CAR remains financially healthy and able to support its membership.
What is the amount of the dues increase from CAR?
$20 per year
When will this dues increase be made effective?
This increase will be effective beginning with the 2024 Dues Billing cycle.
When was the last time CAR increased dues?
CAR last increased the dues for the CAR General Budget in 2015.
CAR also increased dues in 2019 to change the Issues Mobilization allocation by $10 per member to better support CAR’s Issues Mobilization fund, which is money used to support effective advocacy campaigns and ballot initiatives on public policy issues critical to REALTORS® and the real estate industry. There was no increase to the amount supporting the CAR General Budget in 2019.
Why can’t CAR reserve funds be used to counter any budgetary shortfall?
CAR reserve funds would only provide a temporary fix for any budgetary shortfalls. While these funds are intended as an emergency stopgap for budget shortages during hard times, using these funds for a ‘solution’ to a non-emergency, long-term shortage caused by inflation would quickly leave CAR in a weak financial position with a more urgent need for a dues increase in a short amount of time. Maintaining CAR’s financial health so that the association can weather tough times and continue to serve the members is of the utmost importance.
How will this dues increase be used?
The dues increase will be used to correct the budgetary shortfall between revenue and expenses for CAR operations and programs. These programs include political advocacy, professional development, market trends, research, legal services, business services, and other member benefits. Due to inflation and other factors, CAR’s revenue has begun to fall behind expenses. These expenses are essential to maintain all CAR programs and services, as well as administrative costs. Each year, it is more difficult for CAR to cover program and administrative costs and arrive at a balanced budget. To continue to provide the current array of services, remain a competitive employer and support the talented staff that makes these member services possible, CAR needs this additional revenue.
Can’t CAR just cut expenses to cover the shortfall?
CAR takes the responsibility of utilizing member dollars very seriously. Each year, the budget process takes a hard look at what we are spending and looks for unnecessary costs that could be trimmed. CAR’s CEO, COO, and Senior Staff make every effort to ensure CAR is operating according to the Strategic Plan and to the best interests of our membership. Because of these practices, CAR’s budget remains lean and cutting any significant expenses would result in a reduction or elimination of certain services provided for CAR members or would impact the association’s ability to remain a competitive employer, making it difficult to retain the level of staff needed to serve CAR members.