We hope that you are having a great start to 2023. We look forward to gathering for the 43rd North Florida PGA Annual Meeting on Monday, June 26, at Evermore Orlando Resort and Grand Cypress Golf and having a special day of camaraderie, learning, and engaging together.
We’re grateful to our PGA Professionals for your work to better our Section and the PGA of America. Over the last six months, we’ve been working on the strategic initiatives and priorities for 2023 and beyond.
As with all businesses, we face challenging decisions to further our growth and follow our mission of serving the members and growing the game. As outlined below, you’ll read about the decision-making process of increasing our Section Dues for the 2023-24 cycle. It’s important to know that the Board and Finance Committee analyze and review the overall dues impact in detail to make the best decision for the Members of the NFPGA.
In December, as part of the budget process, the Finance Committee recommended to the Board to increase dues and implement a long-term strategy to evaluate future needs. The Board has unanimously approved a 6% increase for 2023, which is equivalent to $10 to $25 increase based upon classification. Additionally, the Board adopted a formula to be used in conjunction with strategic budgetary needs. Below are some key questions the board discussed and are important to share with everyone.
Why do we need an Increase?
There are two key reasons for the increase, inflation/rising business costs and the need for competitive compensation to attract and retain dynamic staff to serve our members and grow the game. We have four primary revenue sources, dues, PGA funding, partners, and registration programs. We are focused on growing partnerships and registration programs but need to ensure dues keep pace with business costs.
How does inflation impact our Section Operations?
Over the last three years, the Section has experienced rising costs impacting every aspect of our business. Expenses for employees, travel, fuel, food & beverage, insurance, and office lease are increasing and, in some cases, by double-digit numbers.
What do we need to attract and retain staff?
Our staffing levels and compensation/benefits package have lagged behind compared to other
Sections and the industry. For long-term growth and sustainability, we need to be able to attract and retain dynamic staff. We’ve made significant steps in the last 12 months to be competitive and attract the best talent.
Will Members see any changes with more staff?
When we hired Steve McMillen, our Executive Director, a little over five years ago, he was tasked with cleaning up our operations and streamlining our expenses. He is now being tasked with growing our Section. As such, with appropriate staff levels and dynamic professionals, he will be able to focus on building deeper relationships with Members and prospective partners outside of traditional golf companies.
How are dues increases approved?
Per the Section bylaws, the Board is authorized to change the dues structure and rates. Section leadership has been studying dues related to inflation for several years. In December, as part of the budgeting process, the Finance Committee recommended to the Board to increase dues and implement a long-term strategy for the board to use to evaluate future needs.
Should we expect annual dues to increase annually?
The Board is in alignment with increasing dues proportionately using the Consumer Price Index (CPI). CPI is the best way to address rising business costs while maintaining services. This strategy means annual increases are possible, instead of significant increases every three to five years.
What is the formula used to evaluate future dues increases?
The formula uses the Bureau of Department of Labor Statistics general guidelines for developing an escalation using the CPI (CPI-U for South Atlantic data will be used so it is regionally adjusted). The calculation should then be used in conjunction with strategic budgetary needs.
Click here to see the General Guidelines 2023
Is the increase being used to grow the reserve fund?
Over the past two years, we have been fortunate to grow the reserve fund because of government programs like PPP, ERC, and TOUR qualifiers. Per our reserve fund strategy, 4-6% of our core revenues (Dues and PGA Funding) must be placed in the reserve fund. The primary purpose of our reserve fund is to be an emergency fund. However, as our fund reaches the primary goal of one year of operating expenses, we will continue to save, creating funds for investment in the membership.
How does our dues rate compare to our peer PGA Sections?
The average dues of all 41 PGA Sections in 2022 was $389. For Sections with large memberships, the average dues in 2022 were $427. The North Florida PGA dues in 2022 were $410.
Why do A-8, B-6, B-8, and Life Member Active pay less dues?
Section leadership agrees this group of members is in a place where they are either starting their careers or are on a fixed income. Therefore the board approved a discount on dues that is appropriate for this group of members.
Why is Life Member Retired not eligible to play in tournaments?
Life Member Retired is a classification for retired members who no longer desire to be actively engaged and thus have reduced benefits. Life Member Active is a classification for retired members who still desire to be actively engaged and maintain the same benefits as actively employed members. Section leadership agrees that dues should be commensurate with benefits.
North Florida PGA Dues Structure
Click here to view North Florida PGA Dues Structure
We’re excited to start the core of the 2023 season with events across the Chapters and Sections. Together, we have great opportunities to elevate the North Florida PGA to the next level. Thank you for what you do each and every day to lead the mission of the PGA of America.
Matt Borocz, Vice President
John Hughes, Honorary President
Steve McMillen, Executive Director
Stefan Brunt, NC Secretary
Jeff Boudrie, SWC President
Jim Endicott, ECC Vice President
Nick Frontero, Tournament Chair
Mike Glenn, WCC Vice President
Grace Hurley, NC Vice President
Darin Hoff, ECC President
Brian Linton, ECC Secretary
Bryan Moran, WCC President
Wes Tucker, NC President
Mike Tuohy, SWC Secretary