The following is for study only and has NOT been approved by the C.A.R. Board of Directors'.
Issues: 1. In light of the REALTOR® Action Assessment (RAA), should the state allocation of voluntary REALTOR® Action Fund (RAF) be changed to provide a stable funding allocation for CREPAC/Federal?
2. Should the $49 (voluntary RAF) contribution on the dues billing statement be changed so that it is not the same as the $49 (REALTOR® Action Assessment)?
3. Should C.A.R. change its policy so that any RAF voluntary contribution is “below” rather than “above” the line on the Dues Billing Statement?
Action: Action is necessary by the Board of Directors if C.A.R. is to implement any change for the 2013 dues billing cycle.
Options: 1. Change the RAF Allocation from 70% to CREPAC/State to a new formula of 70% to CREPAC/Federal. (Note: This would not change the RAF allocation of 30% to local AORs.)
2. Change the voluntary RAF contribution to be a different amount than the RAA?
3. Change C.A.R. policy so that the RAF voluntary contribution does not have to be “above the line” on the dues billing statement in order for local AORs to have access to their LCRC accounts, as per the LCRC Cooperative Agreement.
4. Take no action
Status/ Summary: Established in 2010, the annual REALTOR® Action Assessment (RAA) is $49 paid by members with the annual member dues. The RAF allocation for many years has been 70% to CREPAC/State and 30% to Local AORs. Historically, separate fundraising in the form of $99 Club was used along with other high donor programs to fund CREPAC/Federal with those funds available to meet NAR/RPAC Fair Share goals. In light of the RAA, voluntary fundraising efforts are not as successful as they have been historically. The RAA funds, under existing federal law, cannot be allocated for federal fundraising purposes such as for Federal PAC purposes (NAR/RPAC).
In light of the RAA, there is no shortage of funds for State PAC purposes. Therefore, the issue becomes should a different allocation of RAF funds be adopted to meet NAR/RPAC fundraising goals. Separately, the Greater Antelope Valley AOR has asked the REALTOR® Action Fund Committee to: 1. Change the $49 RAF to an amount different than the $49 RAA; and 2. To change C.A.R. policy to not require the voluntary fundraising contribution (RAF) to be above the line on the dues billing statement. C.A.R. cannot mandate that local AORs put voluntary fundraising contributions “above or below” the line on the dues billing statement, but can make access to LCRC funds contingent upon doing so.
Is CREPAC/Federal Fundraising still needed? Yes. Under existing federal laws, the current dues assessment opt-over (RAA) is not allowed for federal fundraising. NAR/RPAC does still require a $4.50 per member, per year “fair share goal” for C.A.R. to meet. The current system of raising federal political funds is not effectively meeting NAR/RPAC Fair Share goals.
What is the NAR/RPAC Fair Share Goal? N.A.R. on an annual basis assesses CREPAC its “Fair Share” Goal for RPAC Fundraising. The current calculation is $4.50, with a proposed increase to $7.50, per member, per year. For example in 2011, C.A.R.’s membership was roughly 158,000, ($4.50 x 158,000). Therefore, the 2012 “Fair Share Goal” would be $710,000. While the “Fair Share” assessment will fluctuate with actual membership. It is anticipated that the amount will be in the range of $700,000 to $750,000 per year through 2015. And that does not account for any increase from $4.50 to $7.50 per member, per year.
How to meet the NAR/RPAC Fair Share Goal? Option 1: Allocate the 70% voluntary RAF currently credited to CREPAC/State to CREPAC/Federal and retain the current 30% to the local AOR’s. Option 2: Take no action and retain the current allocation system for REALTOR Action Funds. (Note: by 2013 it is projected that CAR may not be able to meet its NAR/RPAC Fair Share goals.)
Should the RAF contribution be changed to an amount other than the $49 (currently the RAF & RAA amount are both $49)? Option1: Take no action leaving the RAF amount at $49, the same amount as the RAA. Option2: RAF Committee recommends changing the amount from $49 to $ ____
Should C.A.R. change its policy so the RAF contribution does not have to be “above the line” on the dues billing statements in order for local AORS to access their LCRC Subaccount funds? Option1: Take no action leaving C.A.R. policy in place requiring the RAF to be above the line in local AOR dues billing statement in order for local AOR’s to have access to their LCRC subaccount funds. Option2: Change C.A.R. policy so that the RAF does not have to be above line on the dues billing statement.