The reality in the Scottish Rite today is that membership will continue to decline over the next few years until such time as the right formula is found to bring about a renaissance at the Craft Lodge level. Maintenance and operational costs will likely increase in most Valleys because of the age and deterioration of our assets. For many of us, dues income alone will not be able to keep pace with the overall operational needs of the Rite.

Since most Valleys in the United States own their own buildings, stage their Degrees with elaborate settings and regalia, and support one or more charities, it is imperative that three strategic things be done to offset the impending loss in members over the next 10 to 15 years. We must endow our membership, our buildings, and our charities!

Endow Your Membership

The Statutes of the Supreme Council provide for Life Memberships. These are actually perpetual endowed memberships in that the principal of the fund is never expended, thus making an income stream available to the Valley into perpetuity. Every member should consider purchasing a perpetual membership for the reason that it provides a guaranteed and predictable future income for the Valley.

The fee for a perpetual membership is determined by the S.G.I.G. or Deputy, but cannot be less than $500 for members under 75 years of age, nor less than $200 for members 75 years and older. There are two ways to look at what fee amount is actually best to charge members for a perpetual membership. The more popular way is to equate the principal multiplied by the interest earnings to the current dues level. The problem with this approach is that, while it meets current Valley income goals, the results are a high fee with few Brethren subscribing.

The other method of marketing perpetual memberships is to set the fee at a level that is popular with the membership, realizing that, over time, the deaths within the perpetual pool will subsidize the living perpetual members in the pool. Thus, by creating a $500 perpetual fee, for instance, the Valley should be able to set a goal that 30% of its members will become perpetual members over a 10-year period. The resulting future income stream is then already known, and the Valley can generate other income to offset the declining dues income. It is important to remember that a Valley ultimately will have the choice of losing the member to death or perpetually benefiting from his legacy.

It is also a good Valley strategy to permit partial payments for perpetual memberships. Each member should decide his own payment level and period since each payment becomes endowed as he makes it. If he has not completed his full fee by year's end, he simply purchases next year's dues and then continues with his payments. There are a number of membership incentives which may also be attached to perpetual memberships. A Valley can purchase a perpetual membership for a member who brings in, say, 20 petitions, using the income generated from the new members to cover the costs of the perpetual fee.

Endow Your Building

Every Valley that owns and operates its own building should place the highest priority on fund-raising programs supporting its restoration. If it owns a historic building, one of the most important decisions a Valley can make is to create a 501c(3) Foundation for its charitable causes and include temple restoration as one of the exempt purposes. If the Valley already has such a Foundation, it can apply for a letter ruling from the IRS, amending its purpose to include restoration, thus making contributions toward restoration tax deductible.

Fund-raising for restoration is generally the most popular with active members. They know what needs to be done to the building, and they want to keep it in good shape so they can always enjoy it for Scottish Rite Reunions.

The key to fund-raising for restoration is to come up with a comprehensive plan of building needs. It is easy to get members who are mechanical and building contractors, roofers, design engineers, and architects to perform such an audit. Once all the needs and cost estimates are known, a Valley can select the most important needs each year and ask members to fund these projects. The restoration progress is seen by the members and will keep them on board as a partner until all the restoration needs are accomplished.

It is also important to offer a menu of giving opportunities. Men respond to different giving programs and levels. Some popular ideas include a "365" Club (one dollar per day for a year); the Builder's Guild at $500 or $1,000 each year; the "Solomon's Elect" at a specific level of giving each month for three or four months. It is also important to realize that the public has a great curiosity about Masonic buildings. Income from daily tours can provide enough money to cover custodial expenses in keeping the building looking polished and clean. In many Valleys, event income is the largest non-dues source of annual revenue. Depending on available seating and building location, this income can be substantive. Valleys are reporting rental incomes ranging from $20,000 upward to $500,000 each year. Concerts, plays, receptions, weddings, and conferences add a significant boost to Valley revenue. It is wise to contact your city's convention and visitor's bureau and let them know you would like to provide venues for such conferences and entertainments.

Theme dinners, celebrity roasts, community feeds, and corporate events can also easily add five figures to your annual operating income each year. You can begin with a pool of volunteers serving as guides and security guards at the events. As your income grows, you can add a full-time staff to manage your public events.

A credible plan and effective communication are the keys to success in fund-raising. If you tell your members/donors what you are going to do with their money and then make sure you keep your word, they will respond.

Every Valley should also place a high priority on endowing its future building needs. It is important that you determine the size of your endowment and then begin fund-raising for the endowment as you are raising money for annual restorations. Endowment income generally comes from estates through life insurance gifts, stocks, gifts of property, foundation grants, and charitable remainder trusts. You should judge your progress in endowment giving as you are raising money for annual restoration. When members know you have an endowment program, they are more likely to make provisions to help you grow it. Each Valley should have a team comprised of an estate planner, tax accountant, attorney, and life insurance agent who can assist with seminars and estate options that meet your members' needs.

Finally, active members can help offset Reunion expenses, which are directly tied to the mission of the Scottish Rite. Organizational groups which create the Reunion experience should be full partners with the Valley in supporting Reunion needs. Candidate fees should be high enough to support from 25% to 35% of the cost of Reunions, with Degree departments taking on fund-raising activities to support costume cleaning, scenery and prop repair, etc. Depending on the number of members who attend Reunions, this source of income can take a considerable financial burden off the Lodge of Perfection.

Endow Your Charities

Never underestimate the passion people have to help children! Most of the charitable money given in the United States goes to programs that address childhood needs. The Scottish Rite has the right philanthropy because childhood language disorders affect more children than all other childhood issues combined.

It is important that as many members as possible have a will or trust. And provisions should be made to include the Scottish Rite as one of the charitable bequests. The Valley should have a wills package with codicil language that can be mailed to each member. A team of professionals should be available to discuss estate and tax options with members.

In promoting your Valley's charities, it is important that regular newsletters be mailed to the membership. Let them know what is being done in your clinics, how many children are being served, and how much progress is being made. Something about Valley charities should be included in every communication, unless the communication is aimed at Temple restoration.

Endowment earnings can be supplemented with annual fund-raising activities directed at Valley charities. To the extent possible, these fundraisers should be major community events, giving much public visibility to Scottish Rite charities. It is also good to initiate an adopt-a-child program in your clinic. This gives members a sense of ownership and direct involvement in this important program of the Valley and helps offset the costs of the program.

Finally, never stop writing grants to outside foundations and corporations who are also interested in the mitigation of illiteracy problems in both children and adults.

There is an axiom that holds true for all of us and all that we do in the Scottish Rite: if we wish a result, we will attain it. To be successful, we must believe that we can be successful. We must care enough about it to imagine and visualize it; in fact, we must see it so clearly that nothing can deprive us from attaining it. The future of the Scottish Rite is literally in our minds. We need only to secure it today so our children and grandchildren can, in their own time, enjoy it as we have.

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Robert G. Davis is the Secretary of the Scottish Rite Bodies in Guthrie, Oklahoma. He is Past Master of two Oklahoma Lodges, serves as editor of the Oklahoma Scottish Rite Mason, is actively involved with Masonic education and renewal programs both in Oklahoma and nationally, and serves as a member of the Advisory Committee of the Masonic Information Center.