After a certain date, some calendar year associations begin signing new members up with expiration dates in the following year. You can accomplish this by using the Multi-Year Initial Term settings in the Member Type settings.
What is a Multi-Year Initial Term?
Associations use multi-year initial terms to answer the question "Why would I sign up for the last couple of months of this year when I can wait a few months to sign up next year?
When setting up a multi-year initial term, you'll need to answer the following questions:
- What date determines when signups start to include the rest of the current year plus all of next?
- Do you want to charge dues for the rest of this year plus all of next, following whatever proration rules you have in place? OR
- Do you want to give your new members free dues for the remainder of this year and only charge them next year's full dues?
Let's say that your members expire on December 31st and after October 1st, you want new signups to expire in the following year. You also want to bill them for the remainder of the year and next year. Your settings would look like this:
What happens if this setting is not turned on?
If you aren't using multi-year initial term, you might run in to a bit of confusion surrounding late-year signups.
Let's again say that your members expire December 31st. Let's also say that the member type is set to renew 90 days prior to expiration, October 2nd.
Your members will renew on October 2nd, but Novi will also check for any members who haven't renewed within a 30-day window of October 2nd. This takes care of any potential failed renewals on October 2nd.
Now, let's say that ABC Company registers on October 15th. A few things will happen if Multi-Year Initial Term is not turned on:
- On 10/15, they will be invoiced for their first year, depending on your settings. Their expiration date will be the end of this year.
- On 10/16, the system will do it's 30-day from 10/2 check. This new member will fall in that window since their expiration date is this year. They will renew. They will be issued a second invoice, for their second year, and their expiration date will move to the following year.
- This is actually correct, because if this didn't happen, then come 12/31/18, they would no longer be a member and then you'd manually have to go and renew them.
- In Recent Signups, you will see them in the list, but it will list the second invoice. Recent Signups will always show the most recent dues invoice. At this point, you might think that it didn't charge for the first year. It did. It's simply on a separate invoice.
As you can see, not using this setting breaks the registration process during this time period into two parts and creates two separate transactions. It also does not allow for you to forgo the remainder of the current year's dues, if that is something you do. The setting will allow that.
To streamline this process, we recommend turning on Multi-Year Initial Term in the member type settings.