Lodge Viability Review

Developed for the Grand Lodge of Kansas -IdeaBuilder Consulting

Agenda• Introducing the SVR Tool• How the Tool works• What do we mean by VIABLE and

SOLVENT ?• What is the Grand Lodge role in

revitalization?• About LodgeBuilder

Introducing the SVR Tool

Developed to provide a fact-based assessment of lodge business operations.

First used in Minnesota, where a local lodge wanted to measure improvement to support year-over-year planning.

Then, refined for use here.

Introducing the SVR ToolThis local lodge was busy, and big at 641 members, but...

– They were losing money– They couldn’t forecast future trends

(except best guesses)– They hadn’t raised dues or rent in 10

years– Were dipping into an endowment fund

to support current operations.

Introducing the SVR Tool

In order to set proper dues, plan for the future, contemplate a better building or simply plan for basic long-term survival, the lodge needed a reliable way to predict future membership trends and future financial wherewithal.

Introducing the SVR Tool

One of the members developed the Solvency and Viability Review Tool

The SVR Tool for short.

Introducing the SVR Tool

The SVR Tool helps us set membership and financial goals.

It helps us understand what “good” looks like, in terms of recruitment, retention and dues, and what changes we ought to make in order to get there.

Introducing the SVR ToolSimply by inserting a lodge number it will show us a baseline prediction and let us know what our membership and finances will look like in years to come.

It also lets us see how slight changes - 2 more raisings perhaps, or 1 less demit per year – change the picture.

How the Tool worksGroup Exercise: What does a lodge need to know in order to accurately project future membership?

How the Tool worksStart with a baseline, then predict inflow and outflow of members:

– Need to estimate the group’s mortality– Need to estimate new member Raisings– Need to estimate formal Dimits– Need to estimate Stricken members

(NPDs)– And Affiliations and Restorations

The SVR Tool is more complex, but this is the idea.

How the Tool worksGroup Exercise: What does a lodge need to know in order to accurately project future BUDGETS?

How the Tool worksTo project our future budgets, start with a reliable membership projection.

– Set a goal. Do we want to break even in “buying power” or earn a profit?

– Account for inflation – 3.5% to 4% per year

– Account for change in income from member gain or loss

– Evaluate… Is it reasonable?

How the Tool worksArmed with these projections, we can make the case for a dues increase and set responsible goals for recruitment or improved retention.

Once we reach solvency and viability, we can build the future we want.

What do we mean by SOLVENT and VIABLE?

Each lodge will have a different answer:

– Metro lodges are going to look different than rural lodges

– Some of our most viable lodges are 100 men or less

– To address solvency we MUST address our past failure to manage inflation

What do we mean by SOLVENT and VIABLE?

Solvent is a lodge that follows a budget, operates on current dues income (and any fund raising), and which has a plan to live within its means.

Viable is a lodge that has found a way to stabilize membership and finances for the foreseeable future, giving it strong foundation for future growth.

What is the Grand Lodge role in Revitalization?

Coach– We are here to help our lodges see

their future potential– We help leaders motivate their lodges – We show them what works in other

lodges

Evaluate & Support– Identify the right strategies for our

lodges– Structure volunteers to maximize

support

“What we obtain too cheap we esteem too little; it is dearness only that gives everything its value.“

-Thomas Paine

Let’s look at the numbers

What is LodgeBuilder?

LodgeBuilder is a website dedicated to Lodge Revitalization.

It is designed to explore the strategies and programs that successful groups have learned, and to share these ideas across North America.

www.lodgebuilder.org

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