Facts 



 GWI Per Capita Dues - Frequently Asked Questions 

At the December 1, 2020 CFUW Board of Directors Meeting, the board took a bold new step in hopes of moving beyond the divide between clubs that wish to maintain CFUW’s membership in GWI and those that wish to withdraw. The board adopted a motion that permits clubs to indicate whether they wish to have their members included in the GWI per capita dues calculation. CFUW will pay GWI per capita dues on the basis of the clubs that indicate they wish to have their members counted. The board appreciates that some clubs and individual members question the board’s decision without consultation on this specific plan of action with the membership despite the fact that the board has committed to being open and transparent. The board believes that this is a matter of urgency. Decisive action was necessary as clubs are leaving, threatening to leave and/or withhold their dues which would make it impossible for CFUW to meet its financial obligations. 

General information 

1. Why did the board make this decision now? a. The board has a fiduciary responsibility to CFUW as per the Canadian Not For Profit Corporations Act (CNCA Part 9 Section 148) which supersedes bylaws (CNCA Part 9 Section 148 (4)). That means that every decision must be in the best interests of CFUW, even if the decision appears to be contrary to member wishes or the needs of another organization. Members of the board can be held legally responsible (liable) if they fail to meet their fiduciary obligation to CFUW. 

b. Over the last 5 years, the divisions in CFUW related to membership in GWI have become deeper and more acrimonious. A majority of members has consistently indicated a desire to withdraw from GWI or to permit members a choice. But their motions have not been adopted because they failed to reach the 2/3 vote in the affirmative required to amend bylaws or adopt a member proposal. A large minority (upwards of 40% of the voting members) is strongly committed to CFUW’s continued membership in GWI. 

c. Since the AGM in June 2020, two clubs have left CFUW, one indicating that the dispute over GWI was a primary motivation. A number of members (clubs) who wish to withdraw from GWI have indicated they intend to withhold some, or all, of their 2021/2022 CFUW dues (dues payable May 1, 2021) as a means of forcing the board to take action. This club action will only further weaken CFUW. 

d. It is neither sustainable nor good business practice for CFUW to fund the full cost of GWI dues knowing that the amounts collected do not cover that full cost and that CFUW has no control over the GWI per capita dues formula or exchange rates. 

e. The CFUW membership has adopted budgets that include payment of GWI dues which have increased but at the same time the membership has declined to 



pg. 2 January 12, 2021 

increase CFUW dues to meet increased GWI costs or provide other means of obtaining sufficient funds. Our membership has approved budgets but has not approved the funding. f. As per bylaw 13 of the CFUW Articles and Bylaws, the board does not have the authority to reduce the dues owing for clubs not included in the GWI calculation, but it can put an amount that would otherwise have been targeted to GWI dues into a restricted reserve until the members decide where those funds should go. 



As a result of all of these factors, the board is offering clubs the choice to be counted in the GWI dues calculation beginning with the calculation for GWI dues that are payable January 1, 2022. GWI per capita dues will be calculated on the basis of the number of individual members of clubs that indicate they wish to be included. 

2. How will this work? a) Clubs will continue to count their numbers in the usual way. They will pay CFUW per capita dues as set at an AGM, currently $76. When Clubs complete their dues calculation on the CFUW National club admin website, they will be asked to indicate whether they want their membership numbers included in the GWI per capita dues calculation. 

b) The total number of individual members from clubs that have indicated their numbers will be included in the GWI per capita dues calculation and have paid their 2021/2022 CFUW dues will have their GWI related dues forwarded to GWI in 2022 as per the terms of the GWI invoice. 

c) Membership numbers from clubs opting not to be included will not be part of the calculation. The motion passed by the Board allows a Club to opt out of the GWI dues calculation; it does not permit individual members of Clubs to choose. 

d) The amount of CFUW dues targeted to payment of GWI dues, $21.50 Canadian (CAD), remains insufficient to cover the full cost of GWI dues, approximately $27.35 CAD (18.6 CHF). 


3. If my club votes to be excluded from membership in GWI, how can I remain a member? 


It is important to remember that you are a member of your club. Your club is the member of CFUW and CFUW is the National Federation or Association (NFA) member of GWI. CFUW is a member of GWI regardless of whether your club chooses to have its members included in the dues calculation. CFUW already has dual members who belong to more than one club. If your club is not included in the GWI dues calculation, you may wish to join a club that is included in the calculation as a dual member. 

pg. 3 January 12, 2021 

4. What are Per Capita dues? 


Per Capita dues” is a calculation to determine the total amount of dues the member (e.g. CFUW club or GWI NFA) owes to the organization (CFUW or GWI). The number of individual club members is multiplied by an amount. In CFUW that amount is $76, as per the motion passed at the 2019 AGM. For example, CFUW “Somewhere” has 123 members. CFUW dues for CFUW “Somewhere” are: $76 X 123 = $9348. 

5. What does the journey of your CFUW per capita dues look like? 


1.) Individual members pay their club dues—usually between May 1 and September. 

2.) The club pays its per capita dues to CFUW between March and May the following year. 

3.) CFUW pays the GWI per capita dues the following January. 

In other words, the dues an individual member of a club paid between May and September 2020 will fund CFUW operations for the fiscal year beginning on May 1, 2021 including payment of GWI dues that are payable on January 1, 2022. 

Individuals paid dues to club CFUW fiscal year starts May 1, 2021 April 30, 2022 CFUW fiscal year 

June to Sept, 2020 and dues collected from the clubs are used for operations ends and your 2021 dues are spent 

↑__________________________↑__________________ ___↑_________ 

↓ ___ ↓ ↓__ 

Club submits dues to CFUW January 1, 2022 GWI December 31, 2022 

by April 30, 2021 and reports if fiscal year starts and GWI fiscal year ends 

Club supports GWI GWI per capita dues are due and paid 

6. How will this affect voting on GWI issues? 


Only clubs that are included in the GWI dues calculation will be permitted to vote on delegate instructions for GWI. 

7. Who will decide what happens to the portion of CFUW dues targeted to GWI but not paid in to GWI? 


Only clubs that are excluded from the GWI dues calculation will be permitted to vote on the disposition of the portion of CFUW dues targeted to GWI dues but not paid to GWI. 

8. If all clubs opted out of the GWI dues calculation, would CFUW remain a member of GWI? 


If all clubs opted out of the GWI dues calculation, CFUW would be unable to pay GWI per capita dues. There would be two choices: 

pg. 4 January 12, 2021 

• GWI’s constitution provides for immediate loss of membership of an NFA that does not pay 50% of its dues by March 31 and the remainder by June 30. The GWI board could notify CFUW of its loss of membership. 

• CFUW could apply for membership as an associate member of GWI. 


9. How many members did CFUW have in May 2020? 


In May 2020, CFUW had 97 members (clubs). CFUW collected per capita dues based on a total club membership (individual members of clubs) of 7759. 

Financial Questions 

10. If my club opts out of the GWI per capita calculation, how much will the CFUW dues be for my club? 


All clubs will continue to pay $76 per capita unless a change in dues is adopted at an AGM. Funds that would have been allocated to GWI dues will be placed in restricted reserves until the members decide how to use them. A change in the dues takes effect in the next fiscal year. A dues change adopted in June becomes payable on the following May 1. 

11. Will CFUW consider two dues amounts in the future—one for those opting in and one for those opting out? 


Different amounts of dues for different groups of members within the same class of member can be considered if a motion is brought to an Annual General Meeting by a club or the board, as long as notice requirements are met. CFUW already offers two dues amounts--a reduced rate for student members. A dues motion could establish a third rate. For example: 

• Clubs that opt in to the GWI calculation pay $(X+GWI) per capita 

• Clubs that opt out of the GWI calculation pay $X per capita 

• Clubs that have students pay $(X/2) per capita per student. 


12. Would it be easier for CFUW to meet its financial obligations to GWI if there were fewer members assessed by GWI on a per capita basis? 


According to the current GWI dues structure, reducing the number of people in the calculation reduces the total amount to be paid, but it does not reduce the per capita amount to be paid. GWI’s per capita charge to CFUW is 18.6 CHF (21.5 CHF less the in-kind MOU credit of 2.9 CHF) or at the current exchange rate, approximately $27.35 (CAD) per capita. During the budget process, the CFUW Finance Committee estimates what the annual exchange rate will be for the per capita GWI dues payment based on advice from various sources. Then in its budget for the 

pg. 5 January 12, 2021 

upcoming year, it uses this rate to calculate the expected cost for the GWI dues payment. For the current fiscal year, the projected exchange rate used was 1.40, so a per capita dues amount of $26.04 was used in the budget, which is less than the current rate of exchange. 

13. Why does CFUW allocate per capita dues based on 15.5 CHF when the GWI per capita dues amount is 18.6 CHF (21.5 – 2.9)? 


The undiscounted dues rate is 21.5 CHF. At the projected exchange rate for 2021 (1.47) that amounts to $31.61 CAD. 

• In 2012, CFUW dues were increased to $70 CAD. 

• In 2012 GWI dues were 15.5 CHF ($17.10). 

• In 2018 GWI dues were increased to 21.5 CHF ($31.61 CAD). 

• In 2019 CFUW negotiated the MOU with GWI which discounted dues to 18.6 CHF 

• In 2019 CFUW adopted a dues increase of $6 that specifically excluded an increase for the GWI allocation ($76 CAD). 

• CFUW pays GWI dues based on 15.5CHF ($21.50 CAD). 

• CFUW has relied on voluntary contributions and other fundraising dollars specifically targeted for GWI to make up the shortfall of 3.1 CHF (18.6 CHF – 15.5 CHF). 


14. What is the impact of lower CFUW membership on CFUW operations? 


Largely due to the impact of Covid-19 on the operations of clubs, there has been an approximate decrease in individual members of 18%. From information gathered from clubs in November 2020, there are currently 6,330 individual members of clubs. As a result, the expected amount of National dues to be collected before May 1, 2021 is $481,080. At the current level of service, it takes approximately $400,000 to operate the national office, maintain the website and social media, provide member services, support the work of the Board, Regional Directors and committees as well as support the advocacy work of CFUW as a whole. This leaves just $81,080 to cover any international obligations, including GWI in the fiscal year ending April 30, 2022. 

15. Have any clubs left CFUW since the 2020 AGM? 


Two clubs notified CFUW of cancellation of their membership, one in September due to COVID-19 and one in November 2020 in response to GWI membership issues. An additional five clubs have indicated they intend to withhold some, or all, of their 2021/22 dues unless the board takes action to terminate membership in GWI. The board has no authority to terminate CFUW’s membership in GWI. 

16. What does CFUW owe GWI for 2021 per capita dues? 


CFUW has been invoiced for 117,738CHF which amounts to approximately $164,833 CAD based on an estimated exchange rate of 1.4. The actual amount paid will be different because it will 

pg. 6 January 12, 2021 

be based on the actual exchange rate at the time of the payment(s). The average annual exchange rate for 2020 was 1.4294, it is expected to be as high as 1.47 in 2021. 

17. Is the original MOU between CFUW and GWI still in effect? 


Yes, in July 2019, CFUW and GWI signed the MOU which remains in effect until December 2022. As provided for in the MOU, CFUW is in good standing with GWI. The MOU includes a provision to renegotiate should there be significant changes in either organization. 

18. What is the expected accumulated shortfall in GWI per capita dues owed by year end 2020? 


All outstanding dues were paid prior to signing the MOU between CFUW and GWI in July 2019. $8,920.90 CAD remains unpaid from the 2020 GWI dues. 

19. What is the proposed GWI dues structure? 


The GWI Commission on Dues Structure has proposed a new dues structure that would come into effect in January 1, 2023 if approved by a vote of the NFAs. However, the report and recommendations do not take into account the impact of the pandemic. CFUW has written to GWI to express our concern with the new proposal and to recommend that the work of the committee be revisited in view of the effects of COVID-19 and in light of the recent CFUW Board decision. 

The new proposed GWI Dues Structure has not yet been approved. GWI proposes a structure that is based on both the country’s GDP (PPP) and the number of members in the NFA. An NFA with more than 1000 members would receive a reduction in rate for each 1000 thereafter. For example, for 1000 members the per capita rate for CFUW would be 25 CHF, for the next 1000 members the rate would be 23 CHF and for the next thousand after that it would be 19 CHF. For 3000 members the average rate would be 22.33 CHF. CFUW would need 7600 to meet an average rate of 15 CHF/member. At the current rate of exchange that would be $22.05 CAD. Under the proposed structure, CFUW would no longer benefit from the credit for in-kind donations that currently keep our rate at 18.6CHF. CFUW is scheduled to discuss additional options with GWI shortly. Incremental # of CFUW Members 

Dues per increment in Swiss Francs (CHF) 

Weighted Average Dues Estimated in CDN $’s at 1.47 exchange rate to buy CHF 

First 1,000 members 

25 CHF 

$36.75 

On second 1,000 members 

23 CHF 

$35.28 

On third 1,000 members 

19 CHF 

$32.83 

On fourth 1,000 members 

17 CHF 

$30.87 

On fifth 1,000 members 

14 CHF 

$28.81 

On sixth 1,000 members 

11 CHF 

$26.71 

On seventh 1,000 members 

7.50 CHF 

$24.47