An Open Letter to International Director Region 13 Gauri Seshadri, DTM

An Open Letter to International Director Region 13 Gauri Seshadri, DTM: Concerns Regarding Membership Dues Increase

Dear DTM Gauri Seshadri,

As the President of Kelab Pidato Kuala Lumpur (01347384, 51, Area J02), I am writing on behalf of our club members and many other Toastmasters who have expressed their concerns regarding the recently announced increase in membership dues.

We understand that the decision to raise the membership dues was made after considering increased operational costs due to the COVID-19 pandemic and inflation. However, we have carefully analyzed Toastmasters International's financial reports for the past four financial years (2018-2021) and believe that the increase may not be warranted at this time.

Our analysis highlights the following key points with specific amounts:

1. Total revenue has dropped from $45.3 million in 2018 to $29.8 million in 2021, but membership dues and new member fees have remained relatively stable, decreasing from $33.0 million in 2018 to $25.0 million in 2021, suggesting that membership is still a strong source of income for the organization.

2. The organization has been successful in controlling expenses, reducing them from $41.4 million in 2018 to $25.9 million in 2021, resulting in consistent annual surpluses ranging from $1.6 million in 2019 to $5.5 million in 2020.

3. The CEO, Board, and HR costs have decreased from $3.4 million in 2018 to $2.6 million in 2021, which suggests that cost optimization measures have been effective.

4. IT costs have been relatively stable, decreasing slightly from $4.3 million in 2018 to $3.3 million in 2021, even as the organization has invested in the new Pathways program and the upcoming Learning Management System (LMS) platform.

These findings indicate that Toastmasters International has managed to maintain a surplus each year through careful cost management. This demonstrates that the organization can operate with lower revenue while still achieving a surplus at year-end.

We would like to bring to your attention that we have started a petition to express our concerns about the dues increase, which has garnered significant support from Toastmasters members. As of now, more than 3,000 members have signed the petition, and the number continues to grow. You can review the petition at https://chng.it/YhbSbwWp

Many of those who signed the petition have raised concerns that the current trend of decreasing Toastmasters membership, especially during these challenging times, calls for support and alternative solutions to encourage more people to join the organization. A rise in membership dues may discourage potential new members and lead to existing members leaving the platform.

We believe that if Toastmasters International decides to move forward with the dues increase, it should also provide a well-thought-out plan and solutions to address the potential loss of members and the impact on clubs, particularly university clubs and those with fewer members. Many club executives are currently feeling anxious and uncertain about the future, and they need guidance and support.

We respectfully request that the Board of Directors reconsider this decision and evaluate alternative ways to manage costs and support members. One possibility is to offer discounted membership rates for university students and senior citizens over the age of 60. This approach may help retain and attract members, especially during these challenging times.

We are concerned that the proposed increase in membership dues may have a negative impact on club membership and may cause some members to leave Toastmasters, ultimately worsening the organization's financial situation. We believe that a review of the decision and a potential reevaluation of the proposed increase would be in the best interests of all Toastmasters members and clubs.

Thank you for your attention to this important matter, and we look forward to your response.

Sincerely,

Terrence Ong Jun Han
President
Kelab Pidato Kuala Lumpur (01347384, 51, Area J02)

Source: Financial Reports 2018 to 2021 https://www.toastmasters.org/about/annual-financial-reports