​Additional 12-Month Membership Information

April 26, 2016

Why is this important for the SCGA and its member clubs?

·Allows SCGA and member clubs to recruit/market membership 12 months a year - it changes the entire dynamic of membership recruitment;

·Recruiting/marketing can take place when the most golf is played;

·Along with join/renew portal, addresses one of the most consistent concerns expressed by golfer – it is not easy to become an SCGA member;

·Matches what people expect in the rest of their lives; sign up for an “annual” membership and it lasts for 12 months;

·Minimize financial disincentive for people to take action regarding membership during the latter half of the year (SCGA currently charges a club $33 for any member who joins at any point between Jan. 1-Sept. 30);

·In combination with auto-renewal feature, automate the member dues collection process as much as possible, supporting retention and taking the onus off volunteer club officials to be responsible for collecting money;

·Mering-Carson report indicated that 26 percent of lapsed members cited a 12-month membership model as the number one reason to come back as a member (tied with tiered membership options);

·The GHIN service is incapable of supporting this model in its current structure;

·Potentially help change the mindset of some of our clubs and invigorate – “this is how we’ve always done things.”

Should this be the USGA’s responsibility to develop?

The USGA has made it clear that it will not be developing all things for all people when it comes to the technological needs for state and regional golf associations (SRGAs). This change in philosophy better positions the USGA to excel in providing core services. Note: The attempt to historically support SRGAs in every way possible has been a longstanding issue inhibiting the success of the GHIN service. The USGA wants SRGAs to innovate to meet various needs resulting in a powerful combination of SRGA development and USGA development in providing services to golfers around the country.

The current GHIN model is not positioned to support a 12-month membership environment. Similar to our discussion with the USGA about a join/renew platform, a 12 month membership model and accounting system supporting that is not currently on the development plans of the USGA. Given that the USGA’s plate is full in developing an entirely new GHIN platform as well as revamping its entire internal technology and CRM environment it is not anticipated that SRGA membership will move to the front of any development plans. Recent dialogue that any joint SRGA/USGA membership model is no longer the highest priority in any “Partner” arrangement and is moving toward the back burner speaks volumes about resource allocation for developing any type of SRGA membership streamlining. Additionally, the GHIN service was never intended to be an accounting system at the club or SRGA level and the current tools that the SCGA uses in connection with GHIN to accomplish elements of a club billing product are not best in class by any means.

Is the SCGA the only golf association that believes this membership model and accounting system are important?

No. While seasonal associations in the northern part of the country have a distinct beginning and end to the golf calendar because of weather and are not keenly interested in this concept, there are some year-round associations that have similar feelings to that of the SCGA. We are currently in discussions with the Northern California Golf Association (NCGA) and the Texas Golf Association (TGA) regarding some sort of join development and cost initiative. Having said that, in order to implement this concept for the next membership cycle, (the 2017 membership year in our current lingo) which essentially begins with the Open Enrollment period starting October 1, we need to proceed quickly, otherwise this concept could not be implemented until the “2018 cycle.” We do not believe that waiting is in the best interest of golfers, clubs and the health of the SCGA as we try to implement numerous growth and retention programs. Our Leadership Team believes that this is a key piece of the puzzle that is necessary to put our best foot forward.

What is the estimated cost for this development?

Approximately $150,000. The existing SCGA budget has approximately $30,000 targeted for commerce development, leaving a $120,000 shortfall.

Who owns this product after it is developed?

The SCGA and Golf Nations (the name of the co-op that we participate in with Liquamedia and other golf associations) will own this jointly. While ownership of software does not guarantee value (see: SCGA and IDC; or NCGA and Golf Rivals) if either SCGA or Golf Nations were to end the working arrangement, all development in connection with the co-op, including, but not limited to the accounting program, will be turned over to the SCGA for future utilization. Because this is being developed in a WordPress plug-in model, this content should be useable in a WordPress (open source) environment. Given that the SCGA, in its determination, is moving toward hosting the services provided by the platform on scga.org, any transition arising from the end of a working agreement should be minimal in nature. The SCGA would not be eligible for future development from the co-op if it ended its working relationship with Golf Nations.

Does the concept of a co-op of SRGAs developing products and tools like the 12-month membership and accounting system supporting this have value to the SCGA?

Yes, as an example, while the SCGA budgeted for and initially spent approximately $50,000 to develop the online join/renewal portal, including auto-renewal, participation from other groups for feature enhancement has resulted in the following breakdown of participation:

SCGA	$62,202.00
Arizona GA	$30,500.00
Colorado GA	$1,000.00
Metropolitan GA	$6,467.50
Washington State GA	$5,945.00
Colorado Women’s GA	$405.00
Liquamedia/Golf Nations	$36,000.00
Total	$142,519.50

So approximately $80,000 of value has been derived by the SCGA through this co-op endeavor to date. This has improved the products and services that we initiated and offer, especially in connection with some auto-renewal functionality.

Are there other financial benefits associated with the proposed development, other than increased growth and retention of membership?

Yes. The SCGA currently spends approximately $13,000 per year to generate and distribute invoices to clubs. An automated electronic invoicing system is part of the proposed development. Also, similar to many products, real-time access to the financial breakdown and administrative functions, for club officials, is part of the project. Second, by being the lead development group, Golf Nations has agreed to waive any maintenance/licensing fees, which other associations will be paying. This is worth approximately $1,000 per month.

As part of our membership development and retention strategies, we recommend moving forward on this initiative immediately.