There are companies out there that will charge a 5% to 10% fee to collect your fraternity dues for you. Often, there is an extensive debate as to whether or not this is ideal for the fraternity.
On the positive side, some these services do some things that fraternities are too lazy to do. They will make sure every brother signs a promissory note each year which will hold them liable for their dues. They will send a bill to each brother each semester to collect payment. Also, they will accept payment by credit card – something most chapters are not equipped to do.
Those are all good things, but in my opinion are not worth the charges associated with the service.
The fraternity treasurer should be able to set up a promissory note and bill each brother each semester. With the promissory note, the fraternity will then have a legal ground to take a brother to a collection agency should he not pay his dues.
In short, the cost does not justify the benefits of outsourcing the dues collection responsibility of your treasurer. I understand that collecting dues is hard, but giving up 10% of your annual collection should be harder.
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