Prepared by Angela Cain, CEO & William Fulton, CFO

There are four primary reasons a dues increase is needed:

Increase in cost of doing business

Increase in member benefits and services

Decrease in dues revenue

Decrease in non-dues revenue

Since 2002 the purchasing power of the dues we

collect has declined by 20.4%, yet programs for

members have grown considerably.

According to Consumer Price Index/Purchase Power

calculations*, annual state association dues that were set

at $125 in 2002 have the same purchase power as

$150.51 in 2008.Source: www.measuringworth.com

*The cost in a particular year of a bundle of goods and services purchased by a typical consumer compared to the cost of that bundle of goods and services in a base period.

How Much Things CostGood or Service* 2002 2008 % IncreaseAverage Cost of New House 136,150.00$ 206,200.00$ 51.5%Average Income Per Year 42,350.00$ 51,765.00$ 22.2%Average Monthly Rent 715.00$ 850.00$ 18.9%Gallon of Gas 1.48$ 3.29$ 122.3%US Postage Stamp 0.34$ 0.42$ 23.5%Loaf of Bread 1.82$ 3.19$ 75.3%Dozen Eggs 0.90$ 2.59$ 187.8%Minimum Wage 5.15$ 6.55$ 27.2%Case of Copy Paper 24.99$ 33.95$ 35.9%IRS Mileage Reimbursement Rate/Mile 34.50$ 54.50$ 58.0%MAR Annual Dues 125.00$ 125.00$ 0.0%

*National statistics available for 2008, not 2009

In the past 8 years, MAR has undertaken several new initiatives that impact how the association serves its members. These include a continuing

series of printed and electronic publications, webinars, websites,

standard forms and contract software, and improved member outreach and

advocacy efforts devoted to improving members’ knowledge, skills, and

business practices.

We are delivering great value for each dues dollar. Since the

last dues increase, we have increased member

programming by more than 50% while reducing staff

size almost 36% and reducing operating expense

by 4.5 %.

We are actually spending LESS than we did 8 years

ago and giving our members MORE.

In 2009, members get MORE for dues dollars

than ever before…

Member Benefits

Four Affinity Partners

2002 2009Quarterly newsletter Quarterly magazine Standard Forms & Contracts in a pdf format Standard Forms & Contracts in a pdf format

Political AdvocacyMississippi REALTOR® Institute

MAR Convention & EXPO cost members $249Legal Hotline

One Association Website (www.msrealtors.org)

MAR Convention & EXPO cost members $159Legal HotlineTechnology Hotline (in-house)

Ten Affinity PartnersFour Association Websites: www.msrealtors.org, www.realtorinstitute.org, http://411.msrealtors.org, http://hurricaneguide.msrealtors.org

Technology Hotline (outsourced)

Flyers and Quarterly Members Mailings on timely topicsREALTOR® Day at the Capitol

Mississippi REALTOR® InstitutePolitical Advocacy

Access to Mississippi REALTOR License Plate

REALTOR® Day at the CapitolMonthly MARDigest e-mailWeekly BrokerBuzz e-mailWeekly Rookie Report e-mailOpportunity Knocks newsletter Real Estate 411: The Mississippi Consumer Real Estate Guide

Lunch-n-Learn Webinars

Housing Opportunity Resource Guide

Monthly Virtual Sales Meetings

Online chat helpline - tech, education, generalZipforms software - desktop or web versions (every member gets a first-time download for FREE - renewals are $59 annaully, a savings of $50 off the orginal price)

Did you know…

MAR dues = $125/member

MAR benefits & services*= $200.74/member

*excluding Mississippi REALTOR® Institute

MAR Membership: Cost of Dues vs. Cost of Services

Cost Per Member

$50.00$10.78$11.95

$25.39

$26.52$26.40

$49.70

$200.74Total Benefits per Member

Magazine/Real Estate 4-1-1 Guide Professional Development

Leadership Development

Electronic Communications

Political Advocacy/Business Protection

Legal Hotline ZipForms/Standard Forms & Contracts

Benefits & Services

-$125.00

$75.74Dues Payment

Added Value

Past, Present & Future

OperationsAs of 12/31/2002

(Audited)2009 Budget (Unaudited)

2010 Projection* (Unaudited)

Income 1,661,030.00$ 1,430,519.00$ 1,294,760.00$

Expenses 1,588,382.00$ 1,518,840.00$ 1,442,898.00$

Surplus/(Deficit) 72,648.00$ (88,321.00)$ (148,138.00)$

*Assumes 9% decrease in membership , 7% decrease in education and 15% decrease in other income from 2009 budgeted income, as well as, a 5% decrease in expenses.

Operating Income/Expense History

Then and Now

As of 12/31/2002

Audited 2009 Budget Difference$646,474.00 $790,875.00 $144,401.00

$824,174.00 $439,844.00 -$384,330.00$190,382.00 $199,800.00 $9,418.00

$1,661,030.00 $1,430,519.00 -$230,511.00

Dues income

TOTALOther Income

REALTOR® Institute Income

Income History

In the past, non-dues revenues, primarily from our real estate

school, have made it possible to forego a dues increase.

However, we simply can't, in the future, expect to raise sufficient

non-dues revenue to fund the level of member benefits and services you’ve come to expect from this

great association.

And we can’t solve our budget shortfalls forever by dipping into reserves.

Reserves History

MAR used reserve funds 1998-2003 for operations and capital

expenditures

Funds added to reserves 2004-2007

1998 ($90,000.00)1999 ($120,000.00)2000 ($200,000.00)2001 ($150,000.00)2003 ($67,000.00)Total

withdrawals ($627,000.00)

2004 $115,000.002005 $183,310.552006 $175,000.002007 $125,000.00

Total funds deposited $598,310.55

• An association of this size and scope should have a minimum of 6 months of operating reserves ($715,000.00).

• Reserves fund balance as of 4/17/2009 was $659,445.31.

What is MAR doing to cut expenses?

Expense cuts made over past 4 years Staff members decreased from 14 in 2002 to 9 in 2009

Recently laid off 10-year employee of association

No staff raises for 2009

Renegotiated multiple vendor contracts

Designated MAR building a smoke-free property and saved $2,000/year in employee health insurance

Changed paper weight/printing/marketing approaches and saved $41,500 annually

Changed member outreach strategy; utilizing more webinars/technology-based outreach – saved $6,000 annually

Reduced staff and leadership travel expenses – saved $3,000

What are other states doing?State

Membership in 2008

Budgeted Membership in

2009

Actual Membership

in 2009

Deficit Budget for

2009Dues

Increase

% of last dues

increase

Apprx. Membership

as of April 2009

Apprx. Dues Revenue for 2010

Alabama 10% decrease

14% decrease

11% decrease

Yes 2008 41.1% 12,600 $2,142,000.00

Georgia 10% decrease

20% decrease

25% decrease

No 2009 25.9% 30,500 $2,226,500.00

Louisiana 8% decrease

13% decrease

14% decrease

No 2009 50.0% 11,250 $1,687,500.00

Florida 11% decrease

10% decrease

17 % decrease

Yes 2010 15.0% 114,000 $13,110,000.00

Tennessee 6% decrease

7% decrease 16% decrease

Yes 2010 28.6% 23,000 $2,070,000.00

Mississippi 2% decrease

12% decrease

11% decrease

Yes 2002 47.1% 6,200 $775,000.00

What about other small states?

StateMembership in

2008

Projected membership

in 2009

Actual Membership

in 2009 Dues Amounts

2010 Membership Projections

% of Revenue

from DuesLast Dues Increase

Membership Size

Maine 9% decrease

9% decrease

9% decrease

$ 182.00 NA 90% No 4130

Rhode Island*

10% decrease

15% decrease

15% decrease

$ 148.50 10% decrease

35% No 4040

New Hampshire

8.5% decrease

5% decrease

9.8% decrease

$ 178.00 10% decrease

70% 2009 5220

Montana** Flat 10% decrease

11% decrease

$ 318.00 9% decrease

90% 2009 4086

New Mexico 9% decrease

8% decrease

17% decrease

$ 215.00 9% decrease

85% 2008 6949

Mississippi 2% decrease

12% decrease

11% decrease

$ 125.00 9% decrease

55% 2002 5768

*Shares 50% of expenses with Statewide MLS, this keeps dues lower. 65% of revenue from continuing education (24 hours required every 2 years)

**Annual 3% cost of living dues increase each year

Why increase dues now when our members are

already struggling?

Now, more than ever, our members need help.

And MAR should remain a viable resource in the challenging months and

years to come.

Our financial challenges are long-term. To

dismantle our reserves and/or cut back on key programs, benefits, and services now would be a

shortsighted and short-term solution.

2010 Budget Projections 9% decrease in membership (budgeted

12% decrease in 2009)

7% decrease in education revenue

15% decrease in other revenue (advertising, sponsorships, exhibits, etc.)

5% decrease in expenses

Dues History

Previous State Association Dues Increase 1998: $60 to $85 – 41.7% increase

Last state Association Dues Increase 2002: $85 to $125 – 47.1% increase

Proposed 2010 dues increase scenarios: Long-term solution: $3/month or

$36/annual increase = 28.8% increase

Medium-term solution: $2.50/month or $30/annual increase = 24% increase

Short-term solution: $2.08/month or $25/annual increase = 20% increase

2010 Dues Increase Scenarios

Dues revenue $ 715,875.00 $ 857,550.00 $ 885,885.00 $ 919,887.00

Education revenue $ 409,055.00 409,055.00$ 409,055.00$ 409,055.00$ Other operating income $ 169,830.00 169,830.00$ 169,830.00$ 169,830.00$ Total Operating Revenue $ 1,294,760.00 $ 1,436,435.00 $ 1,464,770.00 $ 1,498,772.00

Operating Expenses $ 1,442,898.00 $ 1,442,898.00 $ 1,442,898.00 $ 1,442,898.00

Projected Operating Surplus/(Deficit)

(148,138.00)$ (6,463.00)$ 21,872.00$ 55,874.00$

No increase

$2.08/month increase or $25

increase annually

$2.50/month increase or $30

increase annually

$3.00/month increase or $36

increase annually

Operating Revenue vs. Expenses

“Living in the past has one thing in its favor – it’s

cheaper.”

“The bitterness of poor quality lingers long after the sweetness of a cheap

price is forgotten.”

“In any moment of decision, the best thing you can do is the right

thing. The next best thing is the wrong thing and the worst thing you can do is

nothing.”

A $3 a month investment in your state association is a $3 a month investment in your future business success. Vote YES.