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The Future of Your Bar is in Your Hands -

Special Meeting of the MCB Board of Directors Results in a Dues Increase Proposal

Why is a dues increase necessary?

The Mecklenburg County Bar (MCB) staff and leadership have worked hard to maximize your dues dollars. However, since the last dues increase in 2001, the cost of business has risen dramatically, and the MCB is projecting a budget deficit in 2012 (pdf).  Membership services and programs have been expanded to accommodate a growing membership. We believe MCB non-dues revenue sources are at maximum return without further investment.  In addition, the 4,300+ member Bar has outgrown the current Bar Center.

The MCB membership has increased nearly 2.5 times (1,800 members to 4,350 members) since we moved into the Bar Center in 1993. A 2008 analysis of the Bar Center's space usage (pdf) indicated that at least 13,500 square feet of office and meeting space is needed - more than double the current 5,950 sq. ft. An MCB staff analysis conducted by the American Bar Association in 2008 showed that the current MCB staff size of 17 is significantly smaller than the suggested 26 staff members for a bar association with 4000+ members.

A dues increase will benefit the entire membership by enabling the MCB staff and leaders to continue to provide top-rate service and programs to a growing membership in a fiscally responsible way and move the Bar Center into a larger location.         

How would I benefit from a dues increase?

The Mecklenburg County Bar is a sophisticated metropolitan bar that has few equals in our region.  Approaching nearly 100 years of service to our members, you will continue to benefit from being part of a Bar that holds a prominent reputation.

You will also be able to take complete advantage of a new Bar Center. More than just a building, the Bar Center exists to help lawyers do their job. A new Bar Center will provide the Bar:

• Spacious and professional offices and meeting rooms available to MCB members free of charge during regular business hours.
• Expanded section, division and committee opportunities. The MCB and MBF have a total of 72 committees, sub-committees, sections, and divisions working to advance the Bars mission. In a new Bar Center, multiple committees, LRS clients, CLE programs and members will be able to meet simultaneously.
• Networking opportunities.  With a more spacious Bar Center, more networking opportunities and events for a larger audience will be offered to MCB members.
• Lawyer networking/coffee lounge. Members will be able to stop by the Bar Center, enjoy a cup of coffee and catch up with colleagues in a lawyer networking/coffee lounge.
• A state of the art, expanded onsite CLE and event facility. Currently MCB CLE programs and events can only be hosted at the Bar Center if we have 50 people or fewer - and that's packing people very tightly. Anything above 50 requires us to seek alternative locations at a premium cost. 
• Free Wi-Fi. The Bar Center will offer Wi-Fi to its members visiting the Bar Center.
• Videoconferencing services. For use by MCB members during meetings and depositions.

How much more would I pay?

At its January 21, 2010 meeting, the Board of Directors voted unanimously to recommend a $75 dues increase to the MCB membership at the Annual Meeting. The recommendation was a result of careful analyses of detailed financial projections and varying future scenarios.

What is the process for approval?

Only MCB members can approve a dues increase. The dues increase proposal must be approved by Board of Directors and then put to a vote by the membership at the 2010 Annual Meeting on May 20, 2010. The future of your Bar is in your hands.

How would the new money gained from a dues increase be used? 

Given our current budget, if dues are increased by $75, our best estimate indicates that approximately 70 percent of those funds would be used for a new Bar Center and 30 percent would be used for existing operations and programs.

A dues increase, effective in FY2011, of $75 would yield approximately $330,000 from 4,400 members. We estimate that a new Bar Center and its related expenses will cost an additional $232,000 annually, or 70 percent of the new funds. Download this document for a detailed explanation of how these estimates were reached.

What will happen if we don't raise dues?

If dues are not increased, the Bar will face a budget deficit in 2012.  Programs and services will be reduced and we will not be able to move into a new Bar Center.

Since 2001, the cost of doing business has increased while dues have remained flat at $150. According to the Department of Labor CPI inflation calculator, $150 in 2001 has a value of only $117 in 2009.

When was the last dues increase?

MCB dues have not increased in nearly a decade. Since 1991, dues have only increased a total of $50.  The MCB leadership and staff have worked diligently to keep expenses low and increase non-dues revenues.

The national average for length of time between dues increases is only 2.5 years, according to the ABA 2008 MCB Operational Review. We have waited four times longer than the national average to propose a dues increase.

Would this be the only increase for the next 10 years?

An increase of $75 is needed to make up for a decade without any increases to prevent a budget deficit, provide the services and programs utilized and desired by our members, and move the Bar into larger and more functional Bar Center.  In an effort to remain fiscally responsible and ensure the Bar can meet the needs of an increasing membership, the Executive Committee and the Board of Directors are proposing a policy change that will require the Board of Directors to evaluate annually whether an increase in the dues should be presented for vote during that fiscal year.  Currently each individual president must determine whether the Board should consider the need for a dues increase.  An annual evaluation of the MCB dues will likely result in more frequent, smaller proposed dues increases to the membership. 

What do my dues support?

In 2008-09, MCB dues supported only 42 percent of all MCB expenses. Other programs and services, primarily Continuing Legal Education programs, supported 58 percent of MCB expenses. We believe these sources of revenue are currently at maximum return without further investment. 

Since 2001, MCB membership has increased 26 percent. As membership increases, the need for regulatory services grows, and existing programs and services must be expanded to serve a larger population.

Click here to review some of the services and benefits you receive from the MCB. 

What efforts are being made to control overhead?

The MCB has maximized non-dues income sources, primarily CLE programming, and kept expenses below budget, while working with a staff that is significantly smaller than the size recommended by the ABA for the programming and services offered to a bar with 4,300+ members. While the CLE revenue has tremendously increased non-dues revenues, expenses accompanying this programming have also increased. These expenses are primarily related to offsite facility rentals. A new Bar Center would minimize many of the offsite costs by hosting the majority of CLE programming and networking events such as Lawyers Luncheon Series onsite.

Why is a dues increase needed when the Bar has reserve funds?

The MCB Finance and Operations Committee budgets conservatively each year so as to not put our members at risk of a budget deficit. A combination of the success of the MCBs CLE programming and the efforts of the MCB staff to reduce expenses has resulted in additions to the reserve funds on occasion.  

The Bar's reserves are dictated by a formula that addresses the possibility of a future deficit and provides a reserve for future growth. The MCB Board of Directors has mandated that the reserve funds have a minimum of $100,000.  Because the MCB is a mandatory Bar, the Board recommends the reserves hold at least 3 months worth of Other Income (all income except mandatory Bar dues - CLE, Access Cards, Volunteer Lawyer Program, Advertising, Sponsorship, etc.).

Any funds above and beyond $100,000 could be used for future growth, such as offsetting the cost of a new Bar Center.   The reserve funds used would need to be replenished at a later date to meet the recommended three months of Other Income.

Why doesn't the MCB offer a tiered dues structure?

As a subdivision of the N.C. State Bar, the MCB is required to follow the Rules and Regulations set forth by the N.C. State Bar and the N.C. General Statutes governing the State Bar and Judicial District Bars. The rules and regulations prohibit a tiered dues structure. A change would require legislative action that must be presented and lobbied for by those who are affected.   The MCB continues to offer discounts on CLE programs to public interest attorneys who may be disproportionately affected by a dues increase.  Attorneys in small/solo firms may take advantage of the conference rooms and onsite technology available at the Bar Center. In a larger Bar Center, these rooms will be more readily available.

All of my questions weren't answered here.  Who should I contact?

You can review supporting documents here.  Any questions regarding the proposed MCB dues increase may be directed to MCB President Pat Kelly at 704/332-1181 or pkelly@jahlaw.com or MCB Executive Director Nancy Roberson at 704/375-8624 or nroberson@meckbar.org.