The financing of a chamber is also very important.  The two main sources of revenue are  membership dues and supplementary income.  

Membership Dues:

Straight Dues

Usually this takes the form of a uniform amount.  Each individual pays the same amount regardless of the size of their business or the number of persons in a firm that are individual members of the chamber.

Tip: It is strongly recommended that the minimum be set at not less than $50.00.

Multiple Memberships

In most communities straight dues will not supply sufficient revenue.  One of the important problems that face a chamber is that of persuading large firms – and others enjoying direct benefit from particular activities – to invest more liberally in chamber membership.  Larger firms are asked to base their support on multiples of the basic dues; memberships are then assigned by the firm to key members of its staff.

Sliding Scale of Fees

The problem of arriving at a fair and equitable amount is extremely difficult and probably will never be completely solved.  Many formulas have been developed.

Generally, these formulas are based on the number of employees but other bases are as follows:

• 2% of the business assessment (minimum $50.00 – maximum $90.00).
• 1/10 of 1% of retail sales.
• 1/50 of 1% of wholesale sales of value of manufactured product.
• Based on the number of employees.

Examples of scales based on the number of employees:

a) $50.00 for an individual or non-owner of a business; sole owner with 1 employee, $57.00; 2-3 employees, $60.00; 4-10 employees, $65.00; over 10 employees, up to $100.00.

b) $50.00 for an individual; sole proprietor, $55.00; 2 employees, $60.00; over 2 employees, $75.00.

c) $50.00 for an individual or with one employee; 2-10 employees, $455.00; 11-25 employees, $65.00; over 25 employees $75.00 or $100.00.

A variation often used is to set three or four varied dues such as follows:

a) Farmers, employees and such professional persons as teachers, clergymen, etc., $50.00

b) Individuals in business for themselves (including lawyers, doctors, dentists, engineers, etc.) with fewer than four employees, $75.00.

c) Employers with 4-10 employees, $80.00.

d) For each additional 10 employees (maximum $150.00), $15.00.

Tip: Whatever the formula on which dues are based, the final deciding factor is the willingness of the people to pay what is asked.  Need for funds is only the starting point; the chamber must justify its dues on the basis of service performed.

Supplementary Income

Grants from municipal or other authorities are a common source of revenue to chambers.  About  one-third of Canadian chambers obtain funds from such sources.  If the organization can finance itself independently, there is greater freedom of action.  It is recommended that where such municipal contributions are accepted they be earmarked for definite purposes such as tourist or industrial promotion.  Great care should be exercised to ensure that earmarked funds are used only for their specific purposes, and are properly accounted for, thus avoiding any possible criticism of general Chamber expenditures from municipal taxpayers.  A properly audited statement should be submitted to the taxpayers once a year.

When tax funds are used by a chamber, it is good policy never to let such funds be the major part of the organization’s income, and to have a provision that such funds are to be administered by the organization within general limits, without restraint by government agencies or representatives, although the funds may well be earmarked for certain definite purposes such as industrial or tourist promotion.

Some chambers have managed to get away from the suggestion of a “Grant” by listing and “selling” to the city council certain services provided by the camber.  Each of these services has a price tag and the city council then ‘buys’ any or all of these services from the chamber.

Tip: Participation in the MCC’s affinity programs is another excellent way to raise revenue for your local chamber.