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Proposed Dues Formula

By Jeanette Sanders,2014-12-23 20:50
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Proposed Dues Formula

    th88 IFUW Council Agenda Items 20.1 and 21 th29 IFUW Conference Agenda Items 11, 20 and 22 th89 IFUW Council Agenda Item 12.3

    Detailed explanation of the Proposed Dues Formula

Introduction

    The IFUW dues are currently calculated using a single full per capita rate of 18 Swiss francs. Under

    the current sliding scale only two national federations and associations (NFAs), the American Association (AAUW) and the Canadian Federation (CFUW), benefit from a reduction because of their membership numbers. A reduction (maximum 60%) is calculated separately for NFAs in countries with a low per capita gross national income (GNI).

    The proposed dues formula would still reward higher membership numbers with a decrease in dues and provide for a decrease in dues for NFAs in countries with a low per capita GNI, but it uses a single formula that would be applied to all affiliates. The formula uses mathematical logarithms to provide a meaningful and comparable base for the calculation of dues. The formula is based on

    seven bands (or levels) of per capita dues. The benefit of using bands is that there would only be seven possible dues amounts, instead of the individual amounts that are calculated currently for every NFA that receives a reduction as a result of low per capita GNI. The bands would also provide an incentive to NFAs to increase their membership numbers in order to move into a lower band.

    AAUW has not been included in the final step of these calculations, because the calculations are based on the IFUW’s Triennial planning 2008-2010. This planning does not include any dues income

    from AAUW.

    How the Formula Works

    The formula uses a standard mathematical method of logarithms to put membership numbers and gross national income into a comparable form.

    The natural logarithm is determined for the per capita GNI for each member NFA Ln(GNI) the

    poorer the country, the lower the log number. As the log number becomes smaller, the reduction in dues increases. Ln(GNI) is multiplied by 2 to give the GNI more weighting.

    The natural logarithm is also determined for the membership numbers for each member NFA

    Ln(Membership) the greater the number of members, the larger the log number. As this log number becomes greater, the reduction in dues increases.

    The two logarithms for an NFA are then combined in the following formula to determine which of the seven per capita levels should apply to that NFA:

     x = (2 x Ln(GNI per capita)) - Ln(Membership)

    If x is less than 7, the per capita dues is 3 Swiss francs per member

    If x is between 7 and 8, the per capita dues is 5.5 Swiss francs per member

    If x is between 8 and 9, the per capita dues is 8 Swiss francs per member

    If x is between 9 and 10, the per capita dues is 10.5 Swiss francs per member

    If x is between 10 and 11, the per capita dues is 13 Swiss francs per member

    If x is between 11 and 12, the per capita dues is 15.5 Swiss francs per member

    If x is greater than 12, the per capita dues is 18 Swiss francs per member.

    To have the lowest dues level, an NFA must have a low per capita GNI and a large number of members. The highest dues level is paid by NFAs with a high GNI and a low number of members.

    The range within which the dues model will operate is determined by the agreed dues per capita decided by Conference (in this case 18 Swiss francs), where the maximum dues per capita equals the dues set by Conference. The minimum was chosen based on the current maximum reduction allowed.

    Seven bands were chosen to give more incentive to increase membership and the bands are divided equally within the range. The average of the calculated figures is allocated to the highest band and the rest of the calculated figures are divided evenly through the bands*.

    * The table entitled “Calculation of Dues using the proposed Dues Formula” shows the predicted impact on dues for each NFA.

     May 2007

Table: Calculation of Dues using the proposed Dues Formula (Based on Natural Logarithms)

Gross National Income (GNI) per capita, in US$ Rating Scale data from World Bank Atlas 2005 Band Range Membership figures at April 2007 18 x >= 12 15.5 12 > x >= 11 13 11 > x >= 10 10.5 10 > x >= 9 8 9 > x >= 8 5.5 8 > x >= 7 3 x < 7 Dues Income Proposed 2008 with GNI per Dues Model GNI reduct. present capita in Current Sum Dues Income 2009 system US$ Reduction % (Ln GNI) x 2 Membership -Ln M/Ship2x Ln(GNI) - Ln(M/Ship) in CHF in CHF Country 18 Albania 2,580 36 15.71 31 -3.43 12.28 558 355 15.5 Argentina 4,470 19 16.81 251 -5.53 11.28 3,891 3,654 10.5 Armenia 1,470 47 14.59 107 -4.67 9.91 1,124 1,029 18 Australia 32,220 20.76 912 -6.82 13.95 16,416 16,416 18 Austria 36,980 21.04 426 -6.05 14.98 7,668 7,668 5.5 Bangladesh 470 56 12.31 160 -5.08 7.23 880 1,276 18 Belgium 35,700 20.97 100 -4.61 16.36 1,800 1,800 10.5 Bolivia 1,010 51 13.84 120 -4.79 9.05 1,260 1,063 18 Brazil 3,460 28 16.30 65 -4.17 12.12 1,170 838 18 Bulgaria 3,450 28 16.29 55 -4.01 12.28 990 708 8 Burkina Faso 400 56 11.98 20 -3.00 8.99 160 157 3 Burundi 100 59 9.21 35 -3.56 5.65 105 258 10.5 Cameroon 1,010 51 13.84 105 -4.65 9.18 1,103 931 15.5 Canada 32,600 24 20.78 9,744 -9.18 11.60 151,032 133,298 18 Chile 5,870 6 17.36 20 -3.00 14.36 360 337 18 Costa Rica 4,590 18 16.86 50 -3.91 12.95 900 738 18 Croatia 8,060 17.99 90 -4.50 13.49 1,620 1,620 18 Denmark 47,390 21.53 100 -4.61 16.93 1,800 1,800 10.5 Egypt 1,250 49 14.26 100 -4.61 9.66 1,050 926 13 El Salvador 2,450 38 15.61 150 -5.01 10.60 1,950 1,685 18 Estonia 9,100 18.23 47 -3.85 14.38 846 846 18 Fiji 3,280 30 16.19 20 -3.00 13.20 360 252 18 Finland 37,460 21.06 1,144 -7.04 14.02 20,592 20,592 18 France 34,810 20.92 675 -6.51 14.40 12,150 12,150 15.5 Georgia 1,350 48 14.42 20 -3.00 11.42 310 188 18 Germany 34,580 20.90 598 -6.39 14.51 10,764 10,764 18 Great Britain 37,600 21.07 840 -6.73 14.34 15,120 15,120 18 Guatemala 2,400 38 15.57 30 -3.40 12.17 540 334 8 Guinea 370 57 11.83 20 -3.00 8.83 160 156 18 Hong Kong 27,670 20.46 101 -4.62 15.84 1,818 1,818 18 Iceland 46,320 21.49 105 -4.65 16.83 1,890 1,890 3 India 720 53 13.16 612 -6.42 6.74 1,836 5,132 15.5 Indonesia 1,280 48 14.31 20 -3.00 11.31 310 186 18 Ireland 40,150 21.20 370 -5.91 15.29 6,660 6,660 18 Israel 18,620 19.66 172 -5.15 14.52 3,096 3,096 18 Italy 30,010 20.62 176 -5.17 15.45 3,168 3,168 18 Japan 38,980 21.14 1,250 -7.13 14.01 22,500 22,500 18 Kazakhstan 2,930 33 15.97 20 -3.00 12.97 360 240 10.5 Kenya 530 55 12.55 20 -3.00 9.55 210 161 18 Korea 15,830 19.34 450 -6.11 13.23 8,100 8,100 18 Lebanon 6,180 4 17.46 110 -4.70 12.76 1,980 1,911 18 Lithuania 7,050 17.72 60 -4.09 13.63 1,080 1,080 18 Luxembourg 65,630 22.18 60 -4.09 18.09 1,080 1,080 18 Mexico 7,310 17.79 270 -5.60 12.20 4,860 4,860 13 Moldova 880 52 13.56 20 -3.00 10.56 260 173 13 Mongolia 690 54 13.07 20 -3.00 10.08 260 167 5.5 Nepal 270 58 11.20 51 -3.93 7.27 281 390 18 Netherlands 36,620 21.02 3,856 -8.26 12.76 69,408 69,408 18 New Zealand 25,960 20.33 1,065 -6.97 13.36 19,170 19,170 3 Nigeria 560 55 12.66 310 -5.74 6.92 930 2,518 18 Norway 59,590 21.99 97 -4.57 17.42 1,746 1,746 8 Pakistan 690 54 13.07 100 -4.61 8.47 800 834 18 Panama 4,630 18 16.88 55 -4.01 12.87 990 815 10.5 Philippines 1,300 48 14.34 110 -4.70 9.64 1,155 1,027 18 Poland 7,110 17.74 20 -3.00 14.74 360 360 15.5 Romania 3,830 25 16.50 104 -4.64 11.86 1,612 1,404 18 Russian Federation 4,460 19 16.81 71 -4.26 12.54 1,278 1,032 3 Rwanda 230 58 10.88 100 -4.61 6.27 300 758 18 Samoa 2,090 41 15.29 20 -3.00 12.29 360 213

Table: Calculation of Dues using the Proposed Dues Formula Page 2 of 3

    Dues Income Proposed 2008 with GNI per Dues Model GNI reduct. present capita in Current Sum Dues Income 2009 system US$ Reduction % (Ln GNI) x 2 Membership -Ln M/Ship2x Ln(GNI) - Ln(M/Ship) in CHF in CHF 13 Senegal 710 54 13.13 20 -3.00 10.13 260 167 3 Sierra Leone 220 58 10.79 70 -4.25 6.54 210 529 18 Singapore 27,490 20.44 66 -4.19 16.25 1,188 1,188 18 Slovenia 17,350 19.52 55 -4.01 15.52 990 990 10.5 Solomon Islands 590 55 12.76 20 -3.00 9.76 210 163 18 South Africa 4,960 15 17.02 58 -4.06 12.96 1,044 891 18 Spain 25,360 20.28 30 -3.40 16.88 540 540 8 Sri Lanka 1,160 49 14.11 335 -5.81 8.30 2,680 3,051

    18 Sweden 41,060 21.25 181 -5.20 16.05 3,258 3,258

    18 Switzerland 54,930 21.83 899 -6.80 15.03 16,182 16,182 8 Tanzania 340 57 11.66 20 -3.00 8.66 160 155 15.5 Thailand 2,750 35 15.84 116 -4.75 11.09 1,798 1,360 15.5 Tonga 2,190 40 15.38 30 -3.40 11.98 465 324 13 Turkey 4,710 17 16.91 951 -6.86 10.06 12,363 14,218

    18 Turkish Cyprus 16,510 19.42 100 -4.61 14.82 1,800 1,800 3 Uganda 280 57 11.27 100 -4.61 6.66 300 766 18 Uruguay 4,360 20 16.76 55 -4.01 12.75 990 791

    10.5 USA 43,740 21.37 90,000 -11.41 9.96 - 15.5 Vanuatu 1,600 45 14.76 20 -3.00 11.76 310 197 8 Zimbabwe 340 57 11.66 25 -3.22 8.44 200 194

Maximum 18.09 459,483 445,621

    Minimum 5.65 Average 12.07

    Table: Calculation of Dues using the Proposed Dues Formula Page 3 of 3

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