Fees and Voting Task Force - Consultation Paper by World Organization of the Scout Movement

Finance

Fees and Voting Task Force Consultation Paper

Fees and Voting Task Force - Consultation Paper 1

Â© World Scout Bureau Inc. Finance July 2017 World Scout Bureau Global Support Centre Kuala Lumpur Suite 3, Level 17 Menara Sentral Vista 150 Jalan Sultan Abdul Samad Brickfields 50470 Kuala Lumpur, MALAYSIA Tel.: + 60 3 2276 9000 Fax: + 60 3 2276 9089 worldbureau@scout.org scout.org

Fees and Voting Task Force Consultation Paper

Contents A. Introduction 5 B. Voting 6 C. Fees 7

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A. Introduction This consultation paper provides an update of the work done by the Fees and Voting Task Force (FV Task Force). It seeks the feedback of National Scout Organizations (NSOs) regarding Registration Fees and Voting. The annual registration fee paid by some NSOs has had great discussions. Such discussions were held at the World Scout Conferences in Korea in 2008, Brazil in 2011 and Slovenia in 2014. The Task Force was established, among others, to evaluate and explore alternatives to the current fee system. More than 14 models have been considered to date. It also reviewed voting entitlements.

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B. Voting Extensive consultation in each of the Scout Regions was conducted as part of the Regional Scout Conferences during the entire triennium. A vast majority of the NSOs consulted were in agreement with the current voting system. The World Scout Committee has agreed to the Task Forceâ&#x20AC;&#x2122;s recommendation to retain the status quo for the voting system (each NSO is entitled to six votes).

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C. Fees 1. Facts about the current situation: A decision is not required until the 2020 World Scout Conference. Based on current fee amount collected: • 2 NSOs pay 46% of total fee incomes • 12 NSOs pay 70% total fees • 56 (34%) NSOs from Categories A, B, C and D pay less than US$1,000 • About 80% of NSOs collect fees from members accounting for 88% of the fees collected The Task Force considered US$4.8 million as the total income from fees for WOSM.

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2. Main outcomes identified include: • The current system of collecting registration fees is not widely understood. More awareness and training need to occur for any new model proposed. • About 80% of NSOs have no great issue in paying per capita fees based on their membership as their own internal financing is dependent on income from fees from individual members. • About 30 (20%) NSOs are unable to collect fees from members due to geography, size, lack of infrastructure, level of organisation or legislation which prevents collecting fees for programmes offered to children of a particular age group (mostly primary schools). • The model must not prevent or disadvantage growth of Scouting. • The model must enable NSOs to report membership accurately rather than reporting the numbers that reflect the fee they can afford. • Registration fees are sometimes considered in some NSOs as a payment for the services provided by WSB staff. This is not the case. Fees must be seen as a contribution to the membership of Scouting. • There is a need to decide which universally accepted index best identifies the economic level of each country and should be used for Scouting’s purposes (currently GNI per capita).

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3. A model is being proposed which fine-tunes the current model. Its principles are: a. Continuing to use four categories of countries based on financial figures updated by the World Bank where NSOs in Category A and B will pay a flat fee linked to the membership ranges (see table below). This is not linked to individual membership but larger groupings so it does not disadvantage growth. Countries in Category C and D will pay based on actual membership as currently occurs. b. When an NSOâ&#x20AC;&#x2122;s youth membership reaches 5% of the total youth population in its country, the membership fee is capped and will not increase. These NSOs will be encouraged to make voluntary contributions to support the operational needs of WOSM (over and above the cap). Currently, nine NSOs are equal or above that percentage. c. The increase in the amount to be paid by any NSO will be limited to a maximum of 25% extra each triennium, compared to the previous triennium. d. No NSO should be charged an annual registration fee of more than 35% of the total annual fees budgeted. e. In extreme circumstances, an NSO can request transition arrangements for payment of fees, with the Secretary General. f. When an NSO contributes additional funds, such generosity should be acknowledged.

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4. The Model – Transforming the Current System a. The Brazil Conference confirmed ‘a fine-tuning’ was required to the existing WOSM registration fee system to ensure an effective, fair and practical registration fee system. b. The proposed model is largely based on the Brazil model. It still classifies each NSO into one of four categories (A to D) based on its GNI per capita as defined by the World Bank. This classification system is still considered the most appropriate. c. It proposes a fee per groups of membership (1,000s and 100,000s) for NSOs in Categories A and B. For NSOs in Categories C and D it continues to use actual membership figures.

5. Specific details of the Proposed Model This model is based on: a. fine-tuning the model approved in Brazil (new aspect) b. using the current classification system of the GNI per capita of each country as defined by the World Bank (current) c. to group each NSO into one of four categories (A to D) (current) d. NSOs in categories A and B pay flat fee according to the membership numbers. It can be easily calculated from the table below (new aspect). e. NSOs in categories C and D pay an individually adjusted fee based on their GNI per capita score and membership. Each country has a different GNI per capita score allotted by the World Bank. This score and actual membership numbers are the bases of the fee paid (current). f. The basic fee will be set in each World Scout Conference according to new census, latest available GNI figures and WOSM’s operational budget needs (current).

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For all categories: a. When an NSO reaches 5% of the total youth population in its country, the membership fee should be capped and not increased any further. b. No NSO should be charged an annual registration fee more than 35% of the total annual fees collected (as previous). c. In extreme circumstances, an NSO can request transition arrangements for payment of fees, with the Secretary General.

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For NSOs in Category A and B: Specifically, countries in categories A and B will pay a flat fee according to their size/membership group as follows: Table - Fees by category A and B (in US$):

5001-

Each new

100,000

mbrs

900

1,000

1,700

2,000

<1000

1001-

2001-

3001-

4001-

mbrs

2000 mbrs

3000 mbrs

4000 mbrs

5000 mbrs

500

600

700

800

600

800

1,100

1,400

CATEGORIES

NSOs with membership over 100,000 will pay respectively US$1,000 in category A or US$2,000 in category B for every membership fraction of each 100,000. Example: A country in Category A with a membership of 400,000 will pay four times US$1,000, i.e. US$4,000. A country in Category B with a membership of 700,000 will pay seven times US$2,000, i.e. US$14,000

For NSOs in Category C and D: NSOs in categories C and D will pay a fee according to their actual membership using equations of the present fee system with adjusted GNI percentages: • Category C: Annual fee = (0.0000296244*GNIpc +0.380436071)*basic fee*membership • Category D: Annual fee = (0.0000030733*GNIpc +0.711660213)*basic fee*membership • The maximum fee payable by NSOs in Categories C and D will be the fee of the current triennium increased by 25% in each of the three years. • NSOs belonging to Category C will pay a minimum fee of US$700 NSOs belonging to Category D will pay a minimum fee of US$800

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Positive features

• Fine-tunes the existing system which has been in use for several years • Categories A and B NSOs pay a fee according to their membership - per range of thousand or hundred thousand - not for actual individual members • System is familiar to many

Features that could pose challenges • Minimum fees paid by NSOs in operation since 1996 have been increased across all categories • Still linked to membership growth (but with lesser impact on fees due to growth) • The four categories used to group NSOs is too general to calculate fees for other major events and may require more levels for attendance at Conferences, Jamborees, etc.

• Can be implemented quickly • Addresses those NSOs that collect fees directly from members • Addresses the needs of NSOs who cannot collect fees directly from members and reduces the negative impact of this • Increase in fee as a result of membership increase (for A & B Category countries) are set at big units (of 100K members) hence, reducing the negative impact on growth • Introduces a ceiling where no NSO pays more than a 25% increase on their fees from one triennium to the next • Rewards growth in NSOs when Scout membership reaches 5% of its national youth population by capping registration fees at 5% • Recognises the changing needs of each NSA/ NSO within their country by using the GNI per capita Index and changes in Scouting based on membership numbers

Fees and Voting Task Force: Wayne Davis, Juan Reig Serrano, Luc Panissod, Wahid Labidi, Mohammed Ali Khalid, Neilson Pavon, Peter Blatch, Karin Ahlback

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Registration Fees and Voting Questions for Consultation It would be appreciated if this document could be completed, one per NSO or NSA, and returned to FVTF@scout.org by 30 November 2017. This information will be used to assist the Fees and Voting Task Force to prepare the recommendation to the World Scout Conference in 2020.

NSO/NSA : Contact Person : Position in NSO : Phone : Email :

VOTING 1. Do you support the proposal to retain the status quo for the voting system where each NSO has six votes? YES

Reason:

2. Do you support the six principles as outlined on page 9? YES

Reason:

3. Do you believe the model which is being proposed is fair to all and promotes Solidarity, Unity and Growth? YES

Reason:

4. Considering the current model as approved at Brazil, and the new proposal, which do you prefer? Why? BRAZIL MODEL

PROPOSED

Reason:

5. Any other suggestions?

Thank you for your feedback

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