This guide explains membership renewals, including key terms (term, effective date, etc.) and common procedures. To view visual step by step tutorial, you may access the following links:
Generate Member's Renewal InvoiceSend Batch Renewal Emails to MembersRecord Payments and Generate Receipts
1. Terminology
To ensure we're on the same page, let's clarify some terms related to membership renewals:
- Term: This refers to the billing period of a membership, such as monthly or yearly. It can also represent a specific start and end date for a membership. For example, an annual membership term could be August 1, 2023, to August 1, 2024.
- Effective Date: The date when a member's renewal term begins.
- Expiration Date: The date when a member's renewal term ends.
- Due Date: This is the deadline for dues payment to continue the membership. The due date is calculated based on the effective date of the renewal term.
- Invoice Posting Date: This is the date when invoice records are created in the MMS system. It typically occurs at 2:00 AM EST through a batch process.
2. Procedures
Success in managing member renewals relies on establishing consistent monthly procedures. These procedures usually involve sending billing notifications (invoices) and recording payments or cancellations.
- Creating Invoice Records: The MMS can automatically generate invoice records, representing the billed amounts for members or accounts. These records are created a few days before the effective date of the renewal term, allowing sufficient time for member notifications. The due date of the invoice is usually the same as the effective date but can be adjusted through MMS Configuration.
- Sending Notifications: After invoice records are created, members need to be notified about their upcoming membership expiration and how to submit payment to continue their membership. You can send notifications via mail or email, and you can also resend notifications manually if needed.
- Recording Payments / Handling Cancellations: Once notifications are sent, you'll need to wait for member responses. Payments made by check should be recorded in the system, while online payments are automatically recorded. If a member doesn't respond or fails to pay, there are processes in place to handle cancellations or overdue notifications.
3. Annual Renewals
For annual renewals, since they occur less frequently, it's crucial to provide sufficient notice to members about their upcoming expiration. Keep in mind that annual renewals involve more significant decisions for members compared to monthly memberships.
Here's an example procedure for handling annual renewals:- 65 days before the renewal date: Invoice Records Created by Batch Renewal Process. This automated process generates invoice records a set number of days before the renewal date, providing ample time for member notifications.
- 60-65 days before the renewal date: Send Notifications by Mail. Utilize functions like Renewal Notices and Renewal Mailing Labels under Batch Printing to print renewals and labels for the upcoming month.
- 30-35 days before the renewal date: Send Email Notifications to Unpaid Members. Use the Renewal Email Notifications function under Send Emails to send reminders to members who haven't paid their dues.
- 5 days before the renewal date: Payment Due Date.
- 0-5 days after the renewal date: Send Past Due Notifications to Unpaid Members. If members haven't paid by this time, utilize the Past Due Email Notifications function under Send Emails to send reminders.
- 30+ days after the renewal date: Mark Unpaid Members as Dropped. From the Member Database System, select the member and change their Member Status to "Dropped."
- Ongoing Task: Enter payments by check into the system as they come in.
4. Auto-Drop
When enabled, the auto-drop feature automatically removes unpaid members from your membership system. These members will lose access and be excluded from membership lists.
A member is considered unpaid if their latest invoice is overdue and the grace period has elapsed. The grace period is adjustable within the MMS Configuration.
Example: For a membership term from March 1, 2006 to March 1, 2007 with a due date of March 1, 2006, and a 60-day grace period, the member will be dropped on April 30, 2006 unless payment is received.
Important: Auto-drop is not recommended for organizations with annual memberships where all renewals occur at the same time. Please contact us for assistance with managing unpaid members at the end of your annual renewal period.
