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Membership Dues Proration

Updated

For membership types that use a specific renewal date, rather than an anniversary date, you can prorate or adjust the membership fee when members join in the middle of the year, so that the member pays only for a portion of the year.

 

For example, if your annual membership fee is $1200 and your memberships renew on January 1st, and someone joins on July 1st 10th, the system can automatically adjust their membership fee to $600.00.

 

For membership types that contain multiple goods/service, pro-ration can be set for each item individually as needed. For example: You may collect both state and local dues. You can prorate the state dues on an annual basis, and the local dues on a monthly basis.

 

Pre-requisites:

  • Only calendar-based dues can be prorated, anniversary-based dues cannot. To apply automatic prorating, a membership type must use a specific month for the renewal period. Select the desired month from the Renew Everyone field when adding a new membership type. See Add a New Membership Type. The system is designed to work with 12 month terms.
  • The term of the membership must be set to 12 months. Add a New Membership Type.
  • For monthly proration, under your Membership Settings define your preferred Prorate Cutoff Day. This date is used to determine whether or not you will charge the member in the month joined. The default is 15. If you do not wish to use a cutoff day, populate this field with 28. 
  • Prorate Partial Years must be enabled when adding pricing to your membership type.

 

Proration can be done in the following manner:

  • No Proration: If the overall membership is set for proration, use the option to NOT include this goods/service in the proration calculation.
  • Semi-annually: By using this option, if the new member joins in the second half of the year, he/she will be charged 1/2 of the membership dues.
  • Quarterly: By using this option, a new member would be charged based on the quarter in which they join your organization.
  • Monthly: By using this option, a new member would be charged based on the month in which they join.
  • Partial Month (Using Prorate Cutoff Date): Under your membership settings, you can determine the cutoff date for billing new members within the month. If the new member joins prior to the cut-off date, he/she will be charged for the month. If the new member joins after the cut-off date, he/she would not be charged for that month.

 

 IMPORTANT: Proration only affects the initial membership payment. After their first payment, members will be billed base on the payment frequency and amount they selected on the membership application.

 

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