What is Non-Due Revenue and How Does it Help Chambers of Commerce Grow?
Every Chamber of Commerce wants to grow. The larger your Chamber gets, the more resources it attracts and the more benefits you can offer your members. However, Chamber leadership teams often hold misconceptions about how their Chamber will grow and develop.
Of course, increased income is the best way to create sustainable growth and a more flexible budget, however, you will not get a more flexible budget if your growth efforts are focused on increasing Chamber membership numbers. Why?
While it is true that a larger membership base brings in more money per year, it also proportionately increases the expenses owed. So, while it is important to bring in new members and keep your retention rates high, doing this alone will not help your Chamber's budget increase significantly.
Instead, the best way to grow your Chamber and bring in more funds is through non-due revenue. Non-due revenue is exactly what it sounds like, it is income your Chamber gathers through sources that are not your members' regular membership dues.
There are a few different ways that you can gather non-due revenue, which we will discuss in this blog post. We will discuss events and conferences, sponsorship and advertisements, professional development programs, and grants or donations. Keep reading to learn more about non-due revenue sources.
Non-Due Revenue and Your Chamber of Commerce
One of the primary reasons why non-due revenue is crucial for Chamber growth is its ability to support the implementation of innovative programs and initiatives. In other words, the money brought in by non-due revenue is more flexible because it is not immediately consumed by the costs of benefits, and because of this, Chamber leadership can use this money on growth initiatives.
This financial flexibility allows Chambers to react swiftly to changing market dynamics and cater to the evolving needs of their members. It also enables Chambers to invest in marketing and promotional activities, enhancing their visibility and reputation within the business community, resulting in increased membership and revenue. Initiatives like these are key pieces of a successful Chamber of Commerce model.
Let's explore a few sources of non-due revenue below to learn more about different ways you can help your Chamber grow.
Sources of Non-Due Revenue
There are a few different sources of non-dues revenue that Chambers can pursue to help increase their flexibility. The more revenue streams a Chamber has, the more they will be able to offer business owners in their community. Chambers of commerce that offer more benefits also wield more influence in their community and have more control over the direction in which their locality grows.
Below are a few sources of Chamber non-dues revenue that your leadership team should consider for sustainable success.
1. Events and Conferences
Events and conferences are one of the best ways to grow your non-dues revenue and one method that SOCA highly recommends every Chamber partakes in. Not only do Chamber events and conferences allow your organization to collect additional revenue, but they also create networking events full of resources and opportunities to invite local experts, benefits providers, and innovators to work with your Chamber members and discuss the most pressing challenges facing them today. These events can generate revenue through ticket sales, sponsorships, and vendor booth fees.
Your Chamber can charge attendees a nominal fee, part of which will cover conference expenses, and use the rest to bolster your organization. This additional income will serve as non-due revenue which your Chamber can then spread out over the rest of the year.
Events and conferences are a win-win-win for your Chamber, its members, and your local community. Your organization receives additional funds from non-dues revenue streams, your members get to network and discuss pressing issues, and your community gets to host an event that will boost the local economy.
One example of a Chamber of Commerce event is the SOCA Annual Meeting. Learn more about this event to get inspired for your next Chamber event!
2. Sponsorship and Advertising
Your Chamber of Commerce is not just a benefit provider, it is also a hub of local commerce. You can leverage this power to create sponsorship and advertising opportunities that allow your organization to generate additional income through sponsorships and advertising initiatives.
When your Chamber does things like host events, produce literature, or create informational videos, you are also creating space for businesses to advertise. For example, if your Chamber hosts a yearly conference, businesses from around the community will be interested in advertising and sponsoring these events.
Every Chamber has different policies on how they handle sponsorship and advertising, but finding opportunities for these endeavors can help your Chamber of Commerce make more non-due revenue and help make local businesses feel more involved in the community.
Event sponsorships are a great place to start, but be sure to consider opportunities like mobile apps, print newsletters, and other digital spaces for the best results.
3. Training and Professional Development Programs
Your Chamber of Commerce can offer courses, seminars, and training programs outside of your annual conference to generate additional non-due revenue. Your Chamber can host these events on a weekly or monthly basis and charge a small fee for local businesses to attend. You can draw in expert speakers who can talk on a wide variety of topics. These events can focus on teaching a new skill or discussing new topics that affect business owners.
As an added benefit, not only do these events allow you to bring in more yearly revenue, but they also establish your authority as a community leader and hub of knowledge that local businesses can turn to.
4. Grants and Donations
Lastly, another way for Chambers of Commerce to boost their revenue is through grants and donations. Sometimes these funds come with pre-determined specifications for your organization, and sometimes they are offered without stipulation. It can be a worthwhile effort to hire a grant writer or donation coordinator to focus on these efforts.
Grants usually come from the government or private organizations and are often established to address certain issues like improved digital communication or charitable outreach. Donations, on the other hand, usually come without stipulations and can be used to address whichever needs our leadership team sees as most worthy.
Be sure to do your research and search for grants and donations that best help your Chamber of Commerce members thrive.
Your Non-Due Revenue Goes Further with Help from SOCA
Non-due revenue is one of the best ways to help your Chamber of Commerce grow. There are many sources of revenue that your Chamber can pursue, and it is important that you research to see which opportunities are the best for your Chamber.
If your Chamber is partnered with SOCA you can stretch your revenue further and attract more members by offering premium benefits that your members need. Through SOCA, you gain access to the best benefits around, ranging from health coverage to workers' compensation and more.
If you are curious about the numerous benefits that SOCA can offer to help your business thrive, click here to reach out to SOCA today!
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