1. Membership Dues: Analysis of NCMA Dues Structure and Rates Cambria Tidwell Director of Operations 7 November 2009

2. 1 History Effective DateAnnual Dues for Regular Memberships Increase July 1, 2007$110.00$10.00 – 10% July 1, 2002$100.00$15.00 – 17.6% April 1, 2000$85.00$13.00 – 18.1% January 1, 1997$72.00$7.00 – 10.8% January 1, 1992$65.00$5.00 – 8.3% July 1, 1988$60.00$15.00 – 33.3%

3. 2 Market Price Comparison Compared to adjacent professional membership associations. –Project Management Institute (PMI) –Institute for Supply Management (ISM) –National Institute of Governmental Purchasing (NIGP) –APICS The Association of Operations Management –Society of Cost Estimating and Analysis (SCEA) –Association of Proposal Management Professionals (APMP) –National Property Management Association (NPMA) –American Institute of CPAs (AICPA) –American Bar Association (ABA) Based on regular membership rates, average of comparison associations ($174.83) vs. NCMA ($110.00)

4. 3 Market Price Comparison Matrix AssociationRegularChapterRetiredAssociateStudentSIGs NCMA$110NSP$45 FreeNSP PMI$119$20-$55$60N/A$30$20 ISM $150-$355 (avg $252.50) $0 NIGP$175NSP$35N/A$0NSP APICS$200$50N/A $25N/A SCEA$55NSPN/A APMP$100-$125 (avg $112.50) NSP$75N/A$75NSP NPMA$100NSP$20N/A AICPA$200-$395 (avg $297.50) N/A$100$200$35$145-$236 ABA$125-$399 (avg $262) $175$25$35-$100

5. 4 Net Effect of A Type Change & Dues Increase # of membersCurrent Types/Price # of members Proposed Types/Price Regular 1 11,220$110.0011,146$125.00 Organizational 2 5,074100.005,074100.00 Associate 1 76745.000(remove) Student4400 25.00 New Professional 0(new type)84175.00 Retired64645.0064675.00 Initiation Fee2,00020.002,00025.00 Total 3,5 18,147 $1,845,185 4 18,147 $2,073,175 4

6. 5 Net Effect of a Type Change & Dues Increase Without a professional market research effort, we cannot predict the number of members we would lose due to dues increases or gain due to the new types available. Estimated increase of dues and change in membership types = $227,990 increase in revenue. Notes: 1Majority of Associate members will move to New Professional rate, plus a percentage of the Regular members. 2Organizational membership prices are negotiated; prices shown are estimated average per member. 3Complimentary members are not shown as they are provided at no cost and therefore do not affect the revenue calculations. 4Affinity program $ not shown. 5Projections do not include the Member Pro Vita category, as of 26 Oct 41 people have become MPVs.

7. 6 Points of Discussion: New Professional Type – limit at age 30 or 35? –9.7% of membership age 30 or under, $58,000/yr median salary –15% of membership age 35 or under, $63,000/yr median salary –Average age of current Associate members – 31.5 y.o. Retired Type – increase to $50 or $75? –Cost to maintain member for one year ~ $65. –Benefit for years of membership?

8. 7 Points of Discussion: Student Type – increase to $25? –Potential lack of perceived value. –Current association trends. AssociationStudent NCMAFree PMI$30 ISM$0 NIGP$0 APICS$25 SCEAN/A APMP$75 NPMAN/A AICPA$35 ABA$25

9. 8 Points of Discussion: Rate increases in general – potential loss of members? –No significant decline in member numbers in the last increase (effective July 1, 2007). –No significant increase in renewal rates prior to the last increase (prior to July 1, 2007) –Lapsed member survey does note price as the #1 reason to not renew membership.