It was formally announced at the AGM in May that subscription rates for adult membership schemes are to increase from 1 September this year. Neil Morris (left), Membership Marketing Manager, explains the reasons for the increases, just how they will affect you and how you can help the RNLI make the most of your subscription at no extra cost to yourself.The cost of running the Institution from year to year continues to increase. In 1986, £25 million was needed to run the lifeboat service, and the corresponding figure for 1992 is estimated to be around £48 million.

However, at the same time, membership subscription rates have remained unchanged.

To try to red ress the balance, the RN LI has announced that it is to increase adult membership subscriptions from 1 September 1992. However, there is no immediate plan to increase subscription rates to the Storm Force club, the junior membership scheme.

When the increases were first proposed, the Institution listened with interest to your comments and suggestions.

I am pleased to say that, in general, the proposals have met vx ,th members' full support.

And your continued membership is as important to the Institution as ever.

Real value decrease In 1986, there were 120,000 Shoreline and Governor members contributing £1,250,000 to Institution funds.

The average contribution from each member was £10.42.

By 1990, there were almost 177,000 members contributing £1,810,000, and the average contribution was approximately the same at £10.23.

The figures reflect the fact that there had been no increase in membership rates over this time and no tendency or request for new members to contribute higher value subscriptions. However, when inflation is taken into account for, the real value of the average subscription in 1990 actually decreased to just £7.70.

With increased administration costs due to inflation also to be accounted for, it can be seen that by 1990 the average subscription was worth significantly less to the RNLI in real terms than it was in 1986.

Discussion This calculation prompted the proposal to increase subscription rates and gave rise to the discussion article 'Moving with the Times' in the Spring 1991 issue of THE LIFEBOAT. The article sought your views on subscription rates and your letters came flooding in, almost unanimously in favour of an increase. There were also some frequently recurring suggestions.

Many members asked us to keep the minimum membership subscription rate at or below £10 for the time being. For many dedicated supporters, this figure canrepresent a financial sacrifice. The option remains for members who can afford to give more to donate a higher subscription if they wish.

We were also urged to keep THE LIFEBOAT journal part of the membership package. The increases ensure that all publication costs are adequately covered.

On the subject of future changes in subscription rates, you asked us to organise smaller, more regular increases rather than the large, infrequent increases, as at present.

Finally, it was suggested that the RNLI should inform members as widely as possible on the benefit of a covenant.

This automatically increases the value of your subscription to the RNLI at no extra cost to yourself.

Why members are important to the RNLI Why is membership so important? After all, only a few other charities run membership schemes, so they can't be all that useful, can they? In answer to this frequently asked question, there are three vitally important reasons why the RNLI has a membership scheme.

Firstly, the scheme is valuable from a financial planning perspective as it provides regular, planned income.

Membership recruitment and, most importantly, membership renewals can be predicted and budgeted for with greater accuracy than most other types of donations or fundraising. This accuracy gives the RNLI more confidence in planning expenditure on life-saving activities.

Secondly, a membership scheme encourages a better relationship between the Institution and its supporters.

Through THE LIFEBOAT journal, for example, your annual subscription keeps you in touch with the people, places and events within the lifeboat service. What's more, if you are a Governor or Life Governor, you can play a direct part in the RNLi's affairs by putting forward your views at the AGM.

In essence, the membership scheme is an effective way for the RNLI to communicate with you as a valued supporter. It also allows you to let us know your thoughtson how we use your donations for life-saving purposes.

Finally, membership schemes are a very attractive way to recruit new supporters. By offering THE LIFEBOAT journal, a car sticker and the opportunity to buy insignia, for example, many more new supporters can be encouraged to contribute to the RNLI than would otherwise be the case.

New rates Set out below is a table showing the new membership subscription rates, effective from 1 September 1992.

Shoreline membership has indeed been kept below £10, yet increased enough to ensure that this subscription continues to make a valuable contribution to RNLI funds.The new rate also allows for the journal to continue as a standard 'benefit' of the m e m - bership scheme.

The Life Governorship rate has been increased by the highest proportion. One Life Governor subscription is now worth the equivalent of 17 years of Annual Governor subscriptions. The Life Governor will still be getting value for money, and we feel the subscription is a more realistic representation of the likely duration of a Life Governor's membership. It also covers more fully the administration and servicing costs involved.

Monitoring progress It is intended that membership rates will be reviewed again during 1993. We shall assess the effects of this year's changes and listen to your reactions.

Hereafter, the intention is to implement small, regular increases as appropriate, perhaps biennially and with the benefits of the lessons learned this time round.

Increasing the value of your subscription At the beginning of 1992, less than a quarter of all members had covenanted their subscription. It is a startling fact that it all the remaining members were to covenant their subscriptions, the RNLI would receive an extra £900,000 - all from the Inland Revenue and at no extra cost to yourself or the RNLI.

A covenant is an agreement between the RNLI and the member which enables the charity to recover the income tax paid by the member to the Inland Revenue. The amount receivable is equivalent to 33% of the value of your subscription.

If you receive a salary or interest payments from investments or savings, or if you receive a pension, you will most likely be paying income tax and so you will be able to sign a covenant. Signing a covenant does not affect your personal circumstances in any way. In fact, if you pay tax at the higher rate, there may even be positive benefits in making covenanted contributions to charity, as you will also be able to recover the higher rate paid.

Covenant forms can look daunting. Be assured that this is simply because they are legal deeds and require a statutory form of wording as laid down by the Inland Revenue. There is nothing sinister in these documents.

Please ask for a form or complete the one sent with your next membership renewal notice.

How the subscription increases affect you If you are already a Life Governor, these changes do not affect you. You will continue to receive copies of THE LIFEBOAT and all other membership benefits.

If you are a Shoreline member, Joint Shoreline member or Annual Governor and your next subscription is due after 1 September, your renewal notice will advise you how these changes affect you.

If you are not already a member, please consider making the most of the current, lower subscription rates! And finally...

We are sure you will understand our reasons for having to increase our subscription rates and the changes will be made as efficiently and smoothly as possible.

Please accept the RNLI's grateful thanks for your continued and valued membership.Membership Subscription Rates Membership Minimum subscription rates Category To 31/8/92 From 1/9/92 Shoreline £6pa Joint Shoreline £9pa Annual Governor £20pa £9pa £15pa £30pa Life Governor Storm Force £200 £500 (once only payment) £3pa no change Group Storm Force £1pa no change (per group member) _ __ Membership details Shoreline individual membership Joint Shoreline two adults at one address Annual Governor individual membership, includes voting rights at AGM Life Governor individual membership, includes voting rights at AGM Storm Force individual membership club for under 16s Group Storm Force group of 10 or more under 16s Please note rates shown are appropriate for payment in £ and IR£..