Chapter 46. | Section 17. Print

Section 17. Establishing and Maintaining a Membership Program

Learn how to decide whether a membership program makes sense for your organization, how to set one up, and how to keep it going.

 

A membership program can provide a community organization with recurring financial support, stronger relationships, volunteer participation, advocacy engagement, professional connections, and other forms of long-term involvement.

Membership is not automatically the right strategy for every organization, however.

Before creating a program, determine what membership will mean, why people would want to participate, what rights or benefits members will receive, what the organization will ask of them, and whether the organization has the capacity to maintain the relationship over time.

What is a membership program?

A membership program creates an ongoing relationship between an organization and people or entities that choose to join under defined terms.

Members may contribute:

  • Dues or other financial support
  • Volunteer time
  • Expertise
  • Participation
  • Advocacy
  • Other forms of mission-related engagement

In return, members may receive information, services, events, voting rights, discounts, professional resources, community connection, or other benefits depending on the organization.

Define what “member” means in your organization

The word member can describe different relationships.

Some organizations use membership primarily as a fundraising or engagement program. A person pays dues or enrolls as a supporter but does not receive legal authority over the organization.

Other nonprofit corporations have formal members whose rights are established by state nonprofit-corporation law and the organization's articles of incorporation or bylaws.

Depending on the organization and jurisdiction, formal members may have rights involving:

  • Voting
  • Electing directors
  • Member meetings
  • Notices
  • Approval of specified organizational actions
  • Inspection of certain organizational records

Do not create a fundraising membership program without determining whether the term “member” has legal implications under your governing documents or applicable state law.

Clearly explain whether a membership is:

  • A supporter or donor relationship
  • A professional membership
  • A service or facility membership
  • A legal or voting membership
  • Another defined relationship

What types of membership programs exist?

Supporter memberships

People join primarily because they want to support the organization's mission.

They may receive:

  • Updates
  • Invitations
  • Publications
  • Recognition
  • Other modest benefits

Service or facility memberships

Membership provides access to facilities, services, programs, or activities.

Examples might include community recreation organizations, cultural institutions, professional-resource centers, or other member-serving organizations.

Professional memberships

Professional associations may offer:

  • Continuing education
  • Publications
  • Professional networks
  • Conferences
  • Career resources
  • Policy or advocacy information

Membership itself should not be described as a professional credential unless the organization actually has an appropriate certification or credentialing process.

Advocacy memberships

Some organizations build membership partly to engage people around public policy, community issues, or civic participation.

Members may be invited to:

  • Contact policymakers
  • Attend public meetings
  • Submit comments
  • Participate in public education
  • Support other lawful advocacy activities

Participation should be voluntary.

Organizations should understand the lobbying, election-related, and other advocacy rules that apply to their tax status and funding.

Voting or governance memberships

Some nonprofit corporations give members formal governance rights.

These programs should be developed in coordination with the organization's articles, bylaws, board responsibilities, and applicable state law.

Why might you establish a membership program?

To build recurring financial support

Dues or recurring contributions can diversify organizational revenue.

Membership revenue should not be treated as guaranteed.

Renewal depends on factors such as:

  • Member experience
  • Mission relevance
  • Affordability
  • Communication
  • Perceived value
  • Trust in the organization

To deepen community engagement

Membership can create a structured way for people to remain connected to an organization beyond a single event, donation, or service.

Members may become:

  • Volunteers
  • Advisors
  • Advocates
  • Donors
  • Event participants
  • Future board candidates when appropriate

These roles should remain voluntary. Paying dues should not create an expectation that every member will volunteer, advocate, donate more, or serve in governance.

To develop a constituency

Membership can demonstrate that people choose to maintain an ongoing relationship with the organization.

This information may be useful when communicating with partners, funders, or policymakers.

Represent membership numbers accurately.

Do not imply that members speak for the entire community or that every member agrees with every policy position.

To strengthen communication and feedback

A membership program can create regular opportunities to hear from people who care about the organization's work.

Feedback may inform:

  • Programs
  • Events
  • Communications
  • Accessibility
  • Advocacy
  • Long-term planning

Member input is one source of information. It should not replace meaningful engagement with participants, staff, partners, and other community members who may not be able or choose to become members.

What are the potential disadvantages?

Administrative cost

Membership requires ongoing work involving:

  • Enrollment
  • Payments
  • Renewals
  • Member records
  • Communications
  • Benefits
  • Events
  • Questions and complaints

Calculate the net financial and organizational value of the program rather than looking only at gross dues.

Membership fees may reduce participation

Required dues can exclude people who strongly support the organization's mission but cannot or do not want to pay the standard rate.

Consider:

  • Free membership
  • Reduced-cost membership
  • Pay-what-you-can membership
  • Sponsored membership
  • Nonfinancial ways to qualify for membership

Avoid creating a lower-status category based on assumptions about someone's income or relationship to the organization.

Member expectations can become unclear

Members may assume they have influence over programs or governance simply because the organization uses the term “member.”

Clearly communicate:

  • Rights
  • Benefits
  • Responsibilities
  • Renewal terms
  • Cancellation
  • Voting rights, if any

When is a good time to establish a membership program?

Launch membership when the organization has a clear reason for doing so and enough capacity to sustain it.

Before launching, determine whether you have:

  • A clear membership purpose
  • Defined benefits and rights
  • An appropriate fee structure
  • Staff or volunteer capacity
  • Member-management systems
  • Payment systems
  • Communication capacity
  • Privacy and data-management procedures

Timing a campaign

There is no universal best membership season.

Consider:

  • Historical response and renewal data
  • Community calendars
  • Organizational workload
  • Events
  • Cash-flow needs
  • Member preferences
  • Competing campaigns

Review actual agreements with federated fundraising campaigns or other partners rather than assuming that a particular organization prohibits fundraising during a specific season.

Annual versus rolling membership

Organizations may use:

  • A common annual renewal period
  • Rolling membership based on each person's joining date
  • Monthly or annual recurring membership
  • Another schedule appropriate to the program

Membership software and automated payment systems can make rolling renewals much easier to administer than they once were.

Who are potential members?

Potential members are people or organizations whose interests, relationships, professional roles, experiences, or values align with the membership program.

They may include:

  • Current donors
  • Volunteers
  • Event participants
  • Alumni
  • Community partners
  • Professionals in a related field
  • People who have asked to receive information
  • Former participants when outreach is appropriate and privacy-protective

Do not assume that everyone who has interacted with the organization wants to be solicited for membership.

Build a membership list responsibly

Use a constituent relationship management or membership-management system appropriate to the size of the program.

Collect only information needed for legitimate membership, fundraising, communication, financial, or compliance purposes.

Information may include:

  • Name
  • Preferred contact information
  • Membership status
  • Renewal date
  • Payment history
  • Communication preferences
  • Voluntarily expressed interests
  • Volunteer interests

Avoid collecting personal information simply because it might someday help fundraising.

Do not automatically import friends and acquaintances

Board members, staff, volunteers, donors, and members may make appropriate personal introductions.

They should not simply provide private contact information for friends, relatives, colleagues, or community members without considering whether those people reasonably expect that information to be shared.

Former participants require particular care

A person who once received services should not automatically become a fundraising or membership prospect.

Consider:

  • Privacy
  • Consent
  • Power differences
  • Sensitivity of the services received
  • The organization's stated privacy practices

Avoid casual purchase or exchange of contact lists

Do not assume that another organization's mailing list may appropriately be purchased, borrowed, traded, or added to your system.

Use prospect information only when there is an appropriate legal, ethical, and privacy-conscious basis for doing so.

Use transparent sign-up processes

At events, presentations, or online, invite people to provide their own information.

Explain what they are signing up for.

Where appropriate, allow people to select among:

  • Membership information
  • General organizational updates
  • Volunteer opportunities
  • Advocacy alerts
  • Fundraising communications

How do you establish a membership program?

1. Define the purpose

Decide what you want membership to accomplish.

Possible goals include:

  • Recurring financial support
  • Community engagement
  • Professional networking
  • Volunteer participation
  • Advocacy engagement
  • Access to services or facilities
  • Governance participation

Do not try to achieve every purpose automatically.

2. Determine whether members have governance rights

Review your:

  • Articles of incorporation
  • Bylaws
  • State nonprofit-corporation law

If the organization intends membership to be purely a supporter program, make that distinction clear.

If members will have voting or other legal rights, document those rights carefully and establish appropriate meeting, notice, voting, recordkeeping, and election procedures.

3. Establish membership terms

Determine:

  • Eligibility
  • Duration
  • Dues
  • Benefits
  • Renewal
  • Cancellation
  • Refunds
  • Voting rights where applicable
  • Code-of-conduct expectations where appropriate

4. Set an accessible fee structure

Membership does not have to require dues.

If dues are charged, determine the amount using:

  • Membership goals
  • Cost of benefits
  • Administrative cost
  • Affordability
  • Comparable organizations
  • Community feedback

Consider waivers, sliding options, sponsored memberships, or pay-what-you-can structures when financial barriers would undermine participation.

5. Design membership levels carefully

Different levels may be useful when they reflect different contributions or benefits.

Explain clearly what each level provides.

Avoid creating a structure in which higher financial contributions automatically give donors greater influence over organizational decisions.

Understand the tax treatment of membership dues

Do not automatically describe membership dues as tax-deductible contributions.

Tax treatment depends on:

  • The organization's tax status
  • The amount paid
  • The benefits the member receives
  • The fair market value of those benefits
  • Applicable federal tax rules

For dues paid to a qualified charitable organization, a donor generally may deduct only the portion of the payment that exceeds the value of significant goods or services received in return, subject to applicable exceptions.

Certain recurring membership benefits associated with relatively small annual payments may qualify for special treatment under federal rules.

Do not promise deductibility without determining how the rules apply to the organization's program.

Member acknowledgments and quid-pro-quo disclosures

A donor generally needs a contemporaneous written acknowledgment from a charitable organization to substantiate a single contribution of $250 or more.

Different disclosure requirements apply when a donor makes a payment greater than $75 and receives goods or services in return.

Membership systems should be configured to produce appropriate acknowledgments and disclosures.

6. Decide what members will receive

Benefits might include:

  • Organizational updates
  • Educational resources
  • Events
  • Discounts
  • Publications
  • Professional-development opportunities
  • Access to facilities or services
  • Volunteer opportunities
  • Voting rights where legally established

Benefits should support the purpose of membership without creating inappropriate distinctions between donors and other people the organization serves.

Protect participants when telling organizational stories

Membership communications often include stories about the organization's work.

When describing participants or people receiving services:

  • Obtain appropriate informed permission
  • Protect sensitive information
  • Explain where the story or image may appear
  • Make participation genuinely voluntary
  • Do not condition services on participation in fundraising communications
  • Avoid reducing a person to hardship or trauma to make an appeal more emotionally powerful

7. Choose appropriate communication channels

Membership recruitment may use:

  • Website enrollment
  • Email
  • Direct mail
  • Social media
  • Text messaging where appropriate
  • Phone outreach
  • Community events
  • Personal introductions
  • Peer-to-peer outreach
  • Partner communications

Select channels based on member preferences, accessibility, cost, evidence of effectiveness, privacy, and applicable communication rules.

Personal outreach

Personal introductions can be especially useful when a genuine relationship already exists.

The goal should be to explain the opportunity clearly - not to make it harder for someone to decline.

Phone outreach

If phone outreach is used:

  • Identify the organization and purpose of the call clearly
  • Train callers
  • Use accurate information
  • Respect requests not to receive future calls
  • Maintain appropriate suppression records
  • Follow applicable federal and state calling rules

Organizations using outside telemarketing or fundraising vendors should understand the additional rules that may apply to those vendors.

Direct mail

Direct mail can remain effective for some audiences.

Qualified nonprofit organizations may be eligible for USPS Nonprofit Marketing Mail prices, but authorization and mailing-content requirements apply.

Compare printing, preparation, postage, response rates, staff time, and accessibility with other channels before deciding how much to invest in mail.

Email and digital communication

Email and online membership enrollment are now established membership channels.

Use:

  • Secure membership forms
  • Clear sender identification
  • Appropriate privacy notices
  • Communication-preference controls
  • Simple unsubscribe or opt-out processes where applicable
  • Accessible digital design

Maintain offline alternatives for people who prefer or need them rather than assuming everyone should interact digitally.

8. Create a membership-management system

Assign responsibility for:

  • New enrollment
  • Payments
  • Acknowledgments
  • Renewals
  • Member benefits
  • Communication preferences
  • Questions
  • Complaints
  • Data quality

Depending on the program's size, this may be managed through a constituent relationship management system, membership platform, fundraising system, or other appropriate technology.

Protect member information

Establish procedures for:

  • Access control
  • Passwords and accounts
  • Payment security
  • Data sharing
  • Retention
  • Suppression and opt-out requests
  • Correction of inaccurate information
  • Deletion when appropriate

Do not continuously add personal details merely because they might eventually help fundraising.

9. Process responses promptly

When someone joins:

  • Record the membership accurately
  • Process payment securely
  • Provide confirmation
  • Provide any required charitable acknowledgment or disclosure
  • Explain membership benefits
  • Explain renewal
  • Record communication preferences

If the member expresses interest in volunteering, advocacy, committees, or another activity, route that information to an appropriate person and follow up.

How do you maintain a membership program?

Track acquisition and retention

Monitor:

  • New members
  • Renewals
  • Retention rate
  • Lapsed members
  • Membership revenue
  • Program costs
  • Member participation

A growing mailing list is not necessarily a successful membership program.

Manage records according to purpose

Establish a documented retention and suppression policy rather than using a universal rule that every nonresponsive prospect should remain in the database for three years.

Honor requests to stop communications.

Correct inaccurate information promptly.

Do not search for missing personal information simply to make a member or prospect profile more complete.

Communicate regularly without overwhelming members

Members may value:

  • Program updates
  • Results and learning
  • Upcoming events
  • Volunteer opportunities
  • Educational resources
  • Advocacy opportunities
  • Organizational decisions or developments

Let members choose among communication types when practical.

Make advocacy participation optional

Membership does not automatically make someone part of every advocacy campaign.

When inviting members to contact policymakers or participate in advocacy:

  • Explain the issue
  • Identify the requested action
  • Provide accurate information
  • Make participation voluntary
  • Follow the advocacy and lobbying rules applicable to the organization

Section 501(c)(3) organizations may engage in some lobbying, but lobbying may not constitute a substantial part of the organization's activities unless an applicable alternative expenditure framework is used.

Ask members for input appropriately

Members may provide valuable perspectives on:

  • Membership experience
  • Communications
  • Events
  • Volunteer opportunities
  • Advocacy
  • Organizational priorities

Clearly distinguish consultation from governance. Unless members have formal governance authority, requests for feedback should not imply that the membership controls organizational decisions.

Provide meaningful stewardship

Tell members what their support helps make possible.

Be accurate about both successes and challenges.

Do not communicate only when asking for another payment.

Offer appropriate member events and benefits

Events can strengthen relationships when they provide genuine value and community connection.

Consider:

  • Educational events
  • Program briefings
  • Volunteer activities
  • Community gatherings
  • Tours
  • Online events

Avoid creating donor or member privileges that conflict with equitable access to services or give higher-paying supporters inappropriate organizational influence.

Evaluate the membership program

Review the program regularly.

Consider:

  • Net membership revenue
  • Member acquisition cost
  • Renewal and retention
  • Staff and volunteer time
  • Participation
  • Member satisfaction
  • Accessibility
  • Privacy and data-management concerns
  • Mission value

Do not continue a membership structure simply because the organization has always had one.

Adjust benefits, pricing, communication, technology, enrollment practices, or the program itself when evidence shows that another approach would better serve members and the mission.

In Summary

A membership program can provide recurring financial support, community engagement, volunteer involvement, professional connection, advocacy participation, and other forms of long-term organizational support.

Begin by defining what membership actually means. A fundraising or supporter membership is different from formal membership that carries voting or other legal rights under an organization's governing documents and state law.

Membership revenue can be valuable but should not be described as guaranteed or automatically unrestricted. Renewal depends on member experience and ongoing relevance, while member benefits and organizational promises may affect the financial and tax treatment of dues.

Design membership to be accessible. Membership does not always need to require a fee, and organizations may use reduced-cost, sponsored, pay-what-you-can, or other inclusive approaches.

Build member and prospect lists responsibly. Do not automatically add every participant, community contact, friend, relative, public official, or event attendee to a fundraising database. Collect information for defined purposes, communicate how it will be used, protect it appropriately, and honor communication preferences.

Use current communication methods based on the audience. Online enrollment, email, social media, text, peer outreach, direct mail, events, phone communication, and personal introductions can all play roles when used appropriately.

Understand the tax treatment of dues. A membership payment to a qualified charitable organization is not necessarily fully deductible when the member receives significant benefits in return. Provide the acknowledgments and disclosures required by current federal rules.

Finally, treat members as people in an ongoing relationship with the organization, not simply as recurring sources of money, volunteer labor, political influence, or new prospects. Communicate meaningfully, respond to members, invite appropriate participation, protect their information, and evaluate whether the membership program continues to advance the organization's mission.

Resources

Online Resources

FAQs about nonprofit membership from Idealist.org

Information on starting and maintaining a membership program from the U.S. National Park Service.

Membership renewal and retention. A blog by Bunny Riedel, host of Nonprofit Conversation

Writing an effective membership renewal letter. Another from the same source.

Print Resource

Robinson, E. (2003). The Nonprofit Membership Toolkit. San Francisco: Jossey-Bass.