Each member type will have its own set of dues rules that may or may not apply to the dues-paying members assigned. These are the rules that are used to create dues invoices for your members and properly account for the revenue.
AE Tip™: It's important to consider a member type's settings when creating or reviewing your dues rules.
Note: If you are thinking about a major dues re-structure, please consider setting up a workshop with our team to discuss your possible changes. This will help ensure that the proposed changes work efficiently with your site.
Rule conditions are used to determine whether a specific dues rule applies to a specific member. If a dues paying member meets the conditions established, the dues rule will apply to that member during the renewal.
Common Rule Conditions
> New Member - equal - yes
> New Member - equal - no
> New Member - equal - yes
> Membership Expired - Days ago - less or equal - 365 AND Membership Expired - Days ago - greater or equal - 90
New Member Dues Rule Condition
Completely new members and prior members whose expiration date is beyond the "Treat late renewals as a new member" timeframe set on the Member Type are considered "new members."
The dues equation is how Novi determines what to charge the member for that particular dues rule.
The default dues equation asks for a "Number Value." If the dues for that rule are a flat fee (ie: $50), then just list the amount.
One of Novi's strengths is the way that the system handles complex calculations. You'll notice that in addition to the "number value" field, you also have access to custom fields that you have enabled for dues rules. Instead of "no additional steps," simply choose the math function you'd like to perform. To check your work, take a look at the "Dues Formula" shown below.
More Complicated Calculations
If you charge $5 for each of the first 5 employees and $4 for each employee thereafter, you can use Novi's "Min/Max" feature to help make the math simple.
If your dues equation has a number of steps to it, you'll want to use the parenthesis to enforce all of those math rules we learned back in 6th grade.
You're also able to provide discounts on dues rules, by setting the dues equation value to a negative number.
This way, that amount will be subtracted from the total dues amount.
Don't forget to setup your dues rule conditions! This way, the discount will only apply to those members who should receive it. If you use New vs. Renewal dues rules, you'll want to consider if this discount applies to both of those scenarios as well.
For calendar year organizations (those that renew on a certain date like 12/31), individual dues rules can be set to prorate or not prorate. This allows an organization to prorate their general dues but not an application fee.
Dues can be set to prorate in the first or second membership term.
Admins determine when proration begins based on the number of days, months, or years prior to the expiration date. You probably don't want to prorate on January 15th, but you might want to start prorating in Q2. If that's the case, you'd start prorating nine months prior to the expiration date.
Proration can be based on days, partial months, full months, partial quarters, or full quarters. Prorating based on days is the most fair option for both members and the association. Prorating based on partial months or partial quarters will favor the association while prorating based on full months or quarters will favor the member.
If your dues rules include a minimum or maximum amount (for the entire dues rule- no matter the conditions), be sure to set your limits in the Limits section of each dues rule.
Do you have "highly suggested but not 100% required" dues like contributions to the foundation or your PAC? You're going to love Novi's Optional Dues. Just enable the toggle.
During signup, a member can choose not to pay for the optional dues rule without having to call your accounting department - or without sending a partial payment and leaving your team to figure it out. Admins also have the ability to remove optional dues during the manual renewal process.
Each Dues Rule, if it applies to a particular member, will create a single line item on that member's dues invoice. In addition to adding transparency for your members, this allows your organization to code application fees differently from dues.
Each dues rule will have the following fields that directly relate to accounting:
- Item. This is the QuickBooks Item that will map to your dues rule. Multiple dues rules can map to the same item.
- Class. If you use classes, you can apply them to your individual dues rules.
- Invoice Item Description. In addition to what you place into this field, Novi will append any custom field values that were used in the dues calculation.