Quarterly News for NARFE Leaders · 13 NARFE Insider Qu a rt ely Nw sfo ARFE L d FON- AQs concept...

Quarterly News for NARFE Leaders

Volume 2, Number 2April 2014

National Active and Retired Federal Employees Association

Significant change is neither easy nor tidy; but it is necessary to meet the demands of the times and –ultimately – essential for survival itself. That is why I am taking the rare step of issuing this specialedition of the NARFE Insider to help you to better understand the dire nature of the Association’s

present situation and the opportunity we have to remedy these problems. It is no exaggeration when I claim that the meeting of the NARFE National Executive Board (NEB)

February 24-27 in Jacksonville, FL, was the most important of its kind ever held in the Association’s 93-year history. Over four days, the NEB deliberated and approved the majority of recommendationsdrafted by the Future of NARFE (FON) Committee as a strong basis for strategic planning aimed at tak-ing the necessary steps to ensure NARFE’s successful future. At the upcoming 2014 convention, we willask delegates to vote only to:

• Reduce the number of National Officers from four to two;• Make membership in chapters optional;• Open membership in the Association to everyone;• Provide a $10 youth membership; and• Endorse the Future of NARFE concept.Beyond that, we will begin strategic planning that will allow us to bring additional recommendations

to the conventions in 2016 and beyond. EDITOR’S NOTE: The FON Committee report, reprinted here, appears as it was issued by the

Committee prior to the meeting of the NEB. This special printedition of the NARFE Insider is being mailed to ensure thatthese documents are available to those Association officers whomay not have access to the electronic version or who do notwish to read lengthy electronic documents online.

In this issue …

Message from the President ..................1

Future of NARFE (FON) CommitteePowerPoint Presentation ..........................2

Future of NARFE Committee Members......................................................12

Most Frequently Asked Questions and Answers.........................12

Future of NARFE (FON) CommitteeReport and Recommendations ..........15

The National Executive Board Review of the Future of NARFE Report and Recommendations ...........30

New Regional Map..................................31

Message from the PresidentBy Joseph A. Beaudoin, National President

New NARFE Regional Map (see p. 31)

SPECIAL Future of NARFE EDITION

2 NARFE Insider Quarterly News for NARFE Leaders FON PowerPoint Presentation

Future of NARFE Committee PowerPoint Presentation










12 NARFE Insider Quarterly News for NARFE Leaders FON - FAQs

FUTURE OF NARFE COMMITTEE September 2013-Present

Rodney Adelman Arizona Federation President

Bruce Coleman Iowa Federation VP, and Chapter President

Robert “Old Bob” Davidson California Chapter President

Timothy “Tim” Gartner Ohio Federation VP, and Membership Chair

Gerald “Jerry” Hall California District VP, and Chapter President

Huelyn “Lynn” Harper Georgia Federation VP, and Chapter President

Marc Harris Florida Chapter President

Ted Jensen Past Maryland Federation President

Evelyn Kirby * Region II Vice President (Maryland)

William “Bill” Leatham Florida Federation VP, and Configuration Advisory Board Member

Clarence Robinson Georgia Federation President

William “Bill” Shackelford * Past Virginia Federation President, and Bylaws Committee

*co-chair

1) What is being proposed for vote at the 2014 NationalConvention? Members will be asked to vote on a general resolu-

tion endorsing the vision/concept for NARFE’s futureas outlined in the Future of NARFE (FON) Committeereport, and its use as a base document for short-, mid-and long-term strategic planning. This general resolu-tion will require a majority vote by the delegates at theNational Convention.

The National Executive Board (NEB) will offer fourresolutions to amend the bylaws that, if adopted, would:• Reduce the number of National Officers from four

to two, retaining only a National President andNational Treasurer and abolishing the National

Vice President and National Secretary positions;• Make membership in chapters optional, rather than

mandatory as it has been since 1988; • Open membership in the Association to everyone,

not just those entitled to an annuity from the fed-eral government; and

• Provide a youth membership of $10 for individualsunder the age of 26.

These bylaws resolutions will require a two-thirdsvote by the delegates at the National Convention.

2) What is the proposed timeline for recommendedchanges?While the NEB has endorsed the future of NARFE

Future of NARFE – Most Frequently Asked Questions and Answers


concept as outlined in the FON Committee recommen-dations, there are basically four timeline stages:1) The NEB already has reduced the number of re-

gions from 10 to five, agreed upon the immediatecommencement of a comprehensive brandingstudy and ongoing strategic planning, and the de-velopment of an enhanced NARFE mission state-ment to include championing good governmentand public service. Headquarters will developthese studies for presentation to the NEB.

2) The bylaw amendments and resolutions outlinedabove (see Question 1) will be brought to the 2014National Convention.

3) Should the amendment to reduce the number ofNational Officers from four to two pass, the NEBhas authorized the recovered funds to be used tohire additional, professional marketing and leg-islative staff and to conduct a search for a profes-sional Executive Director to manage NARFEHeadquarters. In the interim, the duties of thetwo former National Officers will be absorbed bythe National President, the National Treasurerand the Headquarters staff. Both the NationalPresident and the National Treasurer will remainresident until a successful Executive Directorsearch is complete and adequate transition hastranspired.

4) All other recommendations will be considered aspart of the strategic planning process, with anychanges that require bylaw modifications beingbrought to, and voted upon, at the 2016 NationalConvention and beyond. Any final recommendedchanges will be in full accordance with the perti-nent laws by which NARFE must abide.

3) Given the scope of changes recommended overtime, how is transition envisioned?Again, strategic planning will play a major role in

determining an implementation plan for any additionalrecommendations. Time will be allowed for scrutiny,budget modeling, fine-tuning as needed and inputfrom NARFE leaders. Prudent and seamless transitionis the goal. It is only after this process that a plan can bedeveloped, presented to the NEB for approval and,where necessary, bylaw changes presented to theNARFE membership for vote.

4) Why are resident National Officers being eliminated? Filling National Officer positions from within the

ranks of membership causes a number of dilemmas:• Although there are most certainly skilled candi-

dates, with exemplary managerial and supervi-sory résumés as federal employees, within ourranks, few among us have the background andexpertise necessary to run a national not-for-profit, 250,000-member organization. Where ourfederal employment and general skill set maymake for many ideal policy setters on a NARFEBoard of Directors, the daily running of the not-for-profit business can be best conducted by awell-vetted association professional ExecutiveDirector – reporting directly to a policy-settingBoard of Directors.

• Biennial elections of National Officers create a re-volving door of Association leadership, with eachnew officer arriving with a new agenda and fac-ing a substantial learning curve. Long-termstrategic planning becomes difficult, if not impos-sible. Critical continuity of business managementis lost.

• There is a substantial cost to the current residentofficer model.

A nonresident, policy-setting Board of Directorsensures the important voice of our membership, whileallowing its policies to be implemented by an experi-enced professional. This is a successful model formany associations.

5) Why did the NEB agree to eliminate or reduce thenumber of Regional Vice Presidents (RVPs) andrevise the scope of their duties? The current structure of NARFE (four National

Officers and 10 RVPs) was established when NARFEwas well on its way to having nearly half a millionmembers. Now, with half that number of membersand many fewer chapters, NARFE has become “topheavy.” Modern communications and technology re-duce the need for travel by RVPs, allowing a singleRVP to successfully represent a larger physical area.

Additionally, funds saved can be reallocated tocritical areas, such as marketing and more focusedlegislative advocacy.


6) Why does NARFE need an Executive Director andwhat will be his/her main roles/responsibilities?

• The Association needs to be run efficiently and ef-fectively, with continuity, a business plan, ongoingassessment, and timely and constructive changesas the “business” requires. The Executive Directorwill be the key person in the Association to helpguarantee continuity and success.

• He/she will serve as the Chief Operating Officer ofthe organization and will have general supervisionof all NARFE Headquarters staff.

• The Executive Director will develop and imple-ment an ongoing strategic planning process withguidance by the Board of Directors.

• The Executive Director will develop and managethe annual budget.

• The Executive Director will have full hiring author-ity for all NARFE Headquarters staff.

• The Executive Director will be hired by the Boardand will be accountable to the Board, serving at itsdirection, and implementing the policies estab-lished by the Board of Directors.

7) What does nonmandatory chapter membershipmean for local chapters?Local chapters would remain an important part of

the NARFE structure as long as they continue to pro-vide benefit to, and are supported by, their member-ship. Existing chapters would continue, as an optionfor all members, virtually unaffected. New chaptersmay be opened via application, and local membershipdues would continue to be collected by Headquarters.An easing of bylaw and administrative requirementswould allow greater flexibility for chapters to operatefor the benefit of their membership.

8) Does funding for local chapters change under anonmandatory chapter structure?No. Should the resolution pass making chapter mem-

bership optional, local chapters may retain the funds cur-rently in their accounts. Chapters will continue to receivethe one-third, new-member fee, as currently structured,for any new member who opts to join a local chapter.

9) What happens to eNARFE if the nonmandatorychapter membership resolution is passed? Without the requirement for members to belong to a

chapter, ZIP-code based or otherwise, electronic chap-ters would no longer exist, and current memberswould simply be members of NARFE. ALL memberswould have the option to join a local chapter, shouldthey choose.

10)Where will the money come from to pay for anExecutive Director, increased advocacy, a brandingstudy and other new initiatives? Savings generated from the reduction of elected re-

gional board members from 10 to five, reducing the cur-rent National Officers from four to two, nonresidentstatus for those two officers once the Executive Directorand new Board of Directors are in place, and a longer-term plan to reduce federation-level funding will coverthese expenses. Fundraising, membership and expandedcorporate sponsorship will complete the funding profile.

11)Over the longer term, how will federations beimpacted?Strategic planning will consider the recommendation

to phase out the federation structure, with the exceptionof the Panama and Philippine Federations, in favor ofstate-level activities focused on advocacy with resourcesdedicated to this effort.

15 NARFE Insider Quarterly News for NARFE Leaders FON Report and Recommendations

The Future of NARFE (FON) Committee was au-thorized by the National Executive Board onJuly 9, 2013, with the realization that NARFE

must change in order to survive. FON members wereappointed by President Beaudoin on August 13, 2013,“to address the future of NARFE and the role of e-chapters as a dominant – and inevitable – part of thisfuture. The committee will examine all significant is-sues that could affect the future growth and viability ofthis Association.” He went on to say that NARFE needsto look into the future in order to see where our greatorganization will be in one, two, or three decades. Thegoal was to have NARFE survive and continue to serveits members as it has for over 90 years. In September hedirected the FON to look at Big Picture issues impact-ing NARFE and to create forward-thinking solutionsfor the long haul. FON was asked not to spend time onpolicy, procedures or process. Again, in January 2014he reminded FON members that the task was huge andto look into our crystal ball to ascertain what NARFEwill or should look like. He reiterated FON was “…ba-sically doing what the founding fathers did in 1921 andthat is—develop an organization that is effective in pro-tecting the benefits of government employees and re-tirees. The new NARFE should be an organization thatis very appealing to the approximate five-six million el-igible citizens.”

What are some facts compelling the charge to FON?1) NARFE increased membership by 200,000 (or ap-

proximately 50,000 a year) between 1978 and 1982.2) Membership in the mid-1980s was almost ½ mil-

lion (about 495,000).3) NARFE is a dues driven organization.

4) NARFE has lost almost ¼ million members (about250,000) since the mid-1980s.

5) NARFE has closed more than 1000 chapters (29 in2010, 28 in 2011, 39 in 2012, and 54 in 2013).

6) NARFE is losing many members to the inevitabil-ity of death (8405 in 2010, 8335 in 2011, 8221 in2012, and 12,409 in 2013. (It should be noted that in2013 HQ updated the data base by researching un-reported deaths.)

7) NARFE dues pay for approximately 68-69% of ourexpenses.

8) NARFE relies on other, fluctuating, income(fundraising, investments) to pay bills.

9) NARFE HQ has gone from over 100 staff to thepresent staff of 51 plus 4 National Resident Officers(NROs).

10)NARFE has 5 organizational layers: chapters, dis-trict/area Vice Presidents, Federation Presidents,Regional Vice Presidents, and HQ, including the 4NROs.

11)NARFE HQ presently has ability to communicateinstantly with all the above layers negating the re-quirement for each layer to be involved in the dis-semination process that was necessary beforetechnology advances such as Internet.

There are some telling characteristics in the makeupof our present membership as well, based on data avail-able. About 2% are under the age of 55 and approxi-mately 35% are over age 75. The average age of presentmembership is around 76. Most of our members are stillin the Civil Service Retirement System (CSRS), but moreand more are covered by Federal Employees RetirementSystem (FERS). At best, only one out of ten of all mem-bers are involved in NARFE’s activities.

Future of NARFE (FON) Committee Report and Recommendations

THE FUTURE NARFE February 24, 2014 Preface

“The current NARFE organization is unsustainable and the long establishedNARFE mission is in grave danger.”

– NARFE National President Joseph Beaudoin, GEMS message, September 23, 2013.How it is that such a sweeping and urgent statement was made? What must we do combat it? This Report will

outline what led to our present situation, other findings and offer strong steps to overcome our plight. PresidentBeaudoin did not mince words and neither will this report. NARFE is in a tough place for many reasons. Doing nothing or changing little are not the right answers. They will ensure our continued decline and ultimate dissolution.


Future of NARFE Committee MembersThe 12 Committee members appointed come from

all levels in NARFE’s structure. The compositionshows how many-hatted some of our leaders have be-come and reflects their dedication to help NARFE suc-ceed. Such tireless efforts, though, can lead to burn outand speak to little succession across NARFE in fillingofficer positions. Importantly, the group brings diverseideas and views to the table relating to our Associa-tion. Their backgrounds also include extensive andvaluable non-NARFE experiences. Five are currentlychapter presidents—with three holding other positionssimultaneously ranging from District Vice President toFederation Vice President. Two other FON membersare also Federation Vice Presidents—with each of theseholding other positions as well. One of these is servingon the National Configuration Advisory Board whichexamines technology solutions to meet NARFE’sneeds. Two are past Federation Presidents, having his-tories of service as other officers. Two are current Fed-eration Presidents, also with extensive service in priorpositions. One is a Region Vice President who held anumber of other officer posts as well.

All FON members know full well that seriously ad-dressing the future of NARFE is a critical defensivemove, not an initiative or project. FON members arefirm and united in what should be done. A listing ofCommittee members is attached.

President Beaudoin created an open door applica-tion process to attract those wishing to be named to theCommittee. He regretted it was not feasible for all ofthe 20 who initially responded to the call to be picked.Most were nominated, some self-nominated. Severalothers wished to serve but could not commit to workrequired. Lastly, several had strengths in areas otherthan FON’s top needs for Committee activities.

MethodologyAs an initial step, the co-Chairs distributed a variety

of pre-meeting reading materials to the members of theFON Committee. Of particular importance were theMay 2007 Three-Year Strategic Plan, the December 2007Final Report of the Committee for Enhancing NARFEfor the 21st Century, and the November 2011 Final Re-port from the ONE Group, LLC. The Committee mem-bers communicated among themselves openly and

candidly before their first formal meeting at NARFEHQ. Further, from the launch of the Committee totoday FON members have been sharing and seriouslyconsidering all the countless ideas and thoughts com-ing from members and leaders from across NARFE. Noinput on issues we face and potential solutions hasbeen disregarded.

The Committee met face-to-face September 17 - 19,2013, and again, January 21 - 24, 2014, with interveningidea exchanges via GoToMeeting video conferencingon October 9 and 26 and November 7 and 14. Therewas a continuous flow of ideas, proposals, and findingsfrom inside and outside NARFE among Committeemembers. A November 21, 2013, briefing of the NEBdeclared that “there were vigorous discussions, aSWOT analysis (strengths, weaknesses, opportunities,and threats), and a consensus reached on a generalframework and future actions.” The briefing also ex-plored the criteria by which FON Committee recom-mendations should be judged:• Will the recommendations further NARFE’s mis-

sion?• Will the recommendations make NARFE more ef-

fective in achieving our mission?• Will the recommendations impact membership

strength?• Will the recommendations help realize the funding

necessary to support NARFE’s membership andgoals?

• Will the recommendations be for the long haul?• Will the recommendations allow NARFE to act

quickly enough to save the organization?Also, on December 12, 2013, the Committee Co-

Chairs conducted a focus group conversation with fourcurrent Federal employees, seeking their views on cur-rent NARFE issues and their thoughts and recom-mended solutions. These four were the only currentemployee members who responded to several requestsfor active employees to assist with Future of NARFEactivities. An informal report of the December sessionis attached. It reflects beliefs that NARFE is providingvaluable information and advocacy, but should bemore vigorous, and materially increase publicity aboutwhat it is and does to protect our rights and benefits.The focus group participants are very favorably im-pressed with the Magazine, have no strong opinions on

17 NARFE Insider Quarterly News for NARFE Leaders

internal structure, unless they are involved with it, andfeel chapter affiliation should be optional.

Committee members continued to exchange pro-posals and ideas until mid-January 2014. They alsoshared ideas on NARFE’s creating a strategic plan. Atthe conclusion of the January 24 meeting at HQ, theCommittee orally briefed the four National ResidentOfficers and select NARFE staff on the final Committeerecommendations, seeking their feedback on ideas pre-sented. A sub-group of the Committee met again atNARFE HQ, February 4 - 6, 2014, to work further onthe Committee’s Report. They also considered possiblestrategic planning options in support of proposals inthat document. Then, as throughout the time fromFON’s first meeting, HQ staff was very responsive todata and other information requests. Their assistancewas invaluable. The record must be clear though that atno time did individuals at HQ seek to dissuade FONfrom its course of action or its recommendations. We onthe Committee are the ones offering ideas to remedyour situation.

Accompanying this Report are some suggestions intimeline style for achieving the Vision proposed. It isclearly the responsibility of the National ExecutiveBoard (NEB) to hold discussions, consider options, andmake decisions on incremental steps the Associationshould take immediately and over a number of years.The suggestions point out that while this Report offersvarious details and proposals to bring about the envi-sioned Future NARFE work can only proceed with thefollowing: critical first steps of freeing up resources tocreate a viable strategic plan, building a businessmodel, and convincing stakeholders that change mustoccur, and soon. The Report itself with its findings,concepts and recommendations can stand alone with-out the need to have the several attachments. However,those documents provide added information if such isdesired. NOTE: Recommendations follow the sectionsin which they are discussed.

HistoryFollowing the enactment of the Civil Service Retire-

ment Act in 1920, NARFE was founded on February 19,1921 as the Association of Retired Federal Employees.In 1924, our name was changed to the National Associ-ation of Retired Federal Employees. In 1947, the name

was changed again to the National Association of Re-tired Civil Employees, and Chapters were first author-ized in the Association’s Constitution. In 1950, the firstnational convention was held in Washington, DC, andthe first Federation of Chapters (California) was organ-ized. In the late 1960s, NARFE was restructured to en-hance its legislative clout. In 1970, the name waschanged to the National Association of Retired FederalEmployees. In 1982, NARFE chartered its Political Ac-tion Committee, NARFE-PAC. Also in 1982, NARFEmembership peaked at nearly 500,000. In 1986, aftermembership growth had stalled, mandatory Chaptermembership was instituted for all new NARFE mem-bers. In 2004, the name was changed once again to theNational Active and Retired Federal Employees Associ-ation. Finally, in 2013, the Future of NARFE Committeewas authorized because our very existence andachievement of our noble mission are in jeopardy.

Strategic PlanningOrganizations that wish to succeed, remain relevant

and appeal to a strong base of customers, members,funding sources, and public opinion take strategicplanning seriously. Hard looks at current practices andoutcomes, trends, influences and other key factorsmust be done on an ongoing basis to determine realisti-cally what actions, including seemingly unpopular ones,are needed for the short and long terms. Most criticalare implementation of what needs to be done, careful,incremental transition toward indicated change andcandid assessment of results. This Report notes a num-ber of strategic planning actions and reports from thepast—which had little follow through. FON membersare pleased to see evidence that earnest strategic plan-ning is taking hold and urges it continue as a normalpractice. NARFE will wither if this does not happenjust as have other organizations who refused to pay at-tention to ‘signs’ all around them.

Some obvious ‘signs’ apparent to FON have beencited earlier and include the marked decrease in mem-bership, and lessening participation in NARFE’s activi-ties and leadership roles, stretched financial resources,lack of continuity, strategic planning and professionalmanagement in at the top of the Association, reluctanceto accept technology advances and communicationsenhancements that can promote efficiencies, negate

FON Report and Recommendations


need for layers and save time. There are ever increasingthreats to the success of our mission to safeguard ourearned rights and benefits.

RECOMMENDATION 1: Engage in viable strategicplanning on an on-going basis.

VisionThe following underscored statement describes the

Future NARFE as seen by the FON Committee. The As-sociation is envisioned as a leaner, more mission-fo-cused organization, with updated branding, anenhanced message about our mission, and professionalmanagement. Its membership is high; its financesstrong; its advocacy pointed, respected and effective.

The FON Committee has tried to address the find-ings and recommendations of the three reports men-tioned previously. A number of serious concerns raisedin these earlier documents appear to have had little at-tention, particularly as they relate to vision and strate-gic planning. Transforming Current NARFE intoFuture NARFE will not be easy or quick. FON believesprogress towards the vision it sees is essential ifNARFE is to survive as an organization, thrive wellinto the future and meet the needs of current and fu-ture members.

FON took no exception to the Vision Statementfound on page 1 of the booklet on NARFE National By-laws Adopted at the 2012 National Convention. FON’shope is that NARFE present high value to its members,advertisers and others who may provide revenues, andto the entire Federal civilian community. NARFE mustoffer unmatched advocacy. It must have an invaluablebrand identify and use it to improve the image andpublic perception and benefits of those in service to thenation. NARFE must adopt game-changing technology,communications and management styles, appeal to themore senior crowd and attract the younger one.

NameBecause of what is perceived as low name and

recognition of NARFE (outside of its membership,coalition partners, those in and around the U.S. Con-gress and D.C. beltway insiders) market-tested profes-sional “branding” is essential to identify the FutureNARFE. The Committee does not offer branding sug-

gestions, but rather proposes that a comprehensivebranding study be conducted as soon as feasible to de-termine future actions, including whether or not aname or initials change is warranted.

RECOMMENDATION 2: Conduct a comprehensivebranding study, to include whether or not a namechange is warranted for NARFE.

MissionThe Committee recommends that NARFE’s mission

statement be enhanced by adding the phrase “As achampion of good government and public service:”NARFE’s current mission is to support legislation andthe general welfare of current and potential federal an-nuitants. FON believes an enhancement would helpsend a good signal to members, prospective membersand others. By continually championing in our messag-ing that we value “good government and public service”we can perhaps attract greater membership and finan-cial resources. We can also dilute uncalled for anger atand misunderstanding of those in Federal service.

After implementation of the FON Committee recom-mendation, NARFE’s Mission Statement would read: As a champion of good government and public service: To support legislation beneficial to current and potentialfederal annuitants and to oppose legislation contrary totheir interests.

To promote the general welfare of current and potentialfederal annuitants by advising them with respect to theirrights under retirement laws and regulations.

To cooperate with other organizations and associationsin furtherance of these general objectives.

RECOMMENDATION 3: Enhance NARFE’s missionto include championing good government and publicservice.

Governance and StructureOne of the four primary goals of the 2007 Strategic

Plan was, “Focus NARFE on the Basics: legislation, re-cruitment, retention, and service to the members.” Inthe SWOT Analysis of that Strategic Plan, the firstweakness identified was NARFE’s organizationalstructure. The most recent ONE Group Report high-lighted some of the failings and weaknesses in


NARFE’s organizational structure. For example, “Intoday’s hyper-competitive world, NARFE leadership,despite its best intentions does not have the proper ex-perience to lead the organization on a day-to-daybasis” and “NARFE has an organizational structurethat contributes to a lack of accountability, does not fos-ter a committed sense of purpose, and causes poorcommunications.” In arguing for professional leader-ship for NARFE (an Executive Director), the ONEGroup Report explained, “As good as the resident Na-tional Officers are at NARFE, they simply cannot re-place a strong and able Chief Executive Officer(Executive Director) who would be charged by the offi-cers and board of NARFE to maintain the priorities thatthe leadership has set through a comprehensive andquantifiable long range and strategic plan, maintainingdiscipline in its finances, operating like a business, hir-ing the most qualified available employees whose pri-orities are clear, and ensuring that their work movesthe organization forward.” Three of the key organiza-tional recommendations of the ONE Group are:• Begin a transition to experienced permanent pro-

fessional leadership within two years.• National Officers will need to be transitioned to

oversight roles with reduced pay and workingfrom home.

• Have the National Officers serve primarily in thefield as the voice of the membership.

Finally, the Committee for Enhancing NARFE forthe 21st Century reviewed five previous studies be-fore preparing their final report: Dorf and Stanton Re-port - 1992, Membership Study - 2000, Drohan Reportand Analysis - 2001, Former Member Study - 2002,and the Lapsed Member Study - 2005. The “21st Cen-tury” final report states, “The conclusions we drawfrom the five reports is a great disappointment withour National Executive Board over the past 15 years(1992 - 2007) for not being more aggressive in initiat-ing some action sooner. The recommendations pro-vided could have eliminated some of the membershipchallenges today if those recommendations had beenimplemented.” Also, “The studies show we haven’tmoved forward fast enough to retain members. Forsome reason, the problems have been ignored foryears; it’s time to change.”

In seeking solutions to the many issues facing

NARFE, both now and into the future, a study of simi-lar organizations (of size and/or mission) was con-ducted by a sub-group of the FON Committee.Committee members did not simply accept, or parrot,conclusions reached by others who studied NARFEpreviously or those newly benchmarked by FON. Or-ganizations FON examined included AARP, NAACP,MOAA (Military Officers Association of America), NTA(National Teachers Association), NRA (National RifleAssociation), FMA (Federal Managers Association),AAA, the NEA (National Education Association) andothers. An extensive comparison of AARP and theNAACP with NARFE entitled “Clues to Success” is at-tached. Conclusions reached are: non-dues income isvital, chapters’ value is in decline, mission focus is es-sential, and professional managers are critical, as theyassure the essential continuity of strategic efforts at thehighest levels.

The FON Committee vision and offered timelinesattempt to address the findings and recommendationsof previous studies, while also suggesting a variety ofimprovements that will, if adopted, revitalize NARFEand keep it open and flourishing. The various levels ofstructure and governance are addressed below (also,see attached comparative organizational charts).

FON also recognized immediately that NARFE hasmade no significant cuts at the very top of the Associa-tion beyond trimming items like travel and other sup-port expense reimbursements. This is so despite ourmembership dropping to half of its highest number,revenues dipping and chapters closing. We are operat-ing with a decades-old structure, no longer appropri-ate for the 21st century: four National ResidentOfficers, ten Regional Vice Presidents. In addition, wehave multiple layers at and below State level. The ar-rivals of modern communications and technology in-novations such as email, the internet, Skype,GoToMeeting, Webinars, Social Media, and more tocome, have been introduced, but not being used asmuch as they could be. The societal mindset regardingwhen to be active and participate in any organized set-ting is vastly different than it was 10, 20, 30 years ago.The catalog of what successful organizations are recog-nizing and doing to stay alive and meaningful can goon and on, but what is said above demonstrates wherewe are in time.



Board of DirectorsFON recommends the governing body of Future

NARFE be a non-residential Board of Directors(Board). The Board shall preferably consist of sevenmembers, two Board-appointed (with “outside” ex-pertise) and five (possibly seven as an interim meas-ure) regionally-elected Board members. Leewayshould be allowed to appoint more than two Boardmembers if such means garnering someone with sub-stantial prestige, contacts, expertise and/or new ideasto maximize NARFE’s effectiveness. The five region-ally-elected Board members shall be elected every twoyears, in January of odd-numbered years, by the StateRepresentatives (see below) within each region. TheBoard shall establish and modify the composition (ofstates) within each of the five regions of the Associa-tion. Regions shall consist of equal numbers of NARFEmembers, to the extent practicable. Elected boardmembers must be voting NARFE members and resi-dents of the region from which they are elected. Anysubsequent move from the region post-election shouldbe treated as appropriate to the circumstances, usinggood sense. For example, it may be advisable to allowa temporary incumbency from outside regional linesor a temporary vacancy that will not cause undueharm to members. Board members must meet mini-mum qualifications (to be determined). Board mem-bers shall be limited to five full or partial two-yearterms. Elected vacancies on the Board shall be filledthrough election by the State Representatives of theappropriate region.

RECOMMENDATION 4: Establish regionally-electedBoard of Directors of five NARFE members.

RECOMMENDATION 5: Provide for representativeelection of Board of Directors under new structureand governance.

RECOMMENDATION 6: Allow for two additional (ormore if exceptional opportunity arises) appointedBoard members.

RECOMMENDATION 7: Establish term limits forBoard members.

The Committee’s vision is that the Board shall elect,

from among its members, a Board President and aBoard Treasurer (the two Officers required by the D.C.Code by which NARFE must function). Board mem-bers shall be paid members of the organization. Com-pensation shall initially be set at $25,000 per year (plusbenefits and expenses), to be adjusted annually by therate (%) of salary adjustment for Federal employees.The five regionally-elected Board members shall ap-point two additional Board members who can be out-side the regionally-drawn lines. Board Officers andappointed Board members will be determined by theregionally-elected Board members at their first Boardmeeting every two years (not later than March 1 ofodd-numbered years). Terms of appointed Board mem-bers shall run concurrently with the regionally-electedBoard members. Board members may be removed forconduct detrimental to the organization or for causesstipulated by the DC Code by a vote of 2/3 of the othermembers of the Board. A quorum of a majority of theBoard members is necessary to conduct Associationbusiness (whether in physical attendance, by proxy, orby electronic meeting). All elected board members shallcontinue to reside in the region from which elected,with the possibility of a rare exception such as men-tioned in the opening paragraph to this section.

RECOMMENDATION 8: Board members elect BoardPresident and Board Treasurer.

RECOMMENDATION 9: Reduce four NationalResident Officers to two National Non-ResidentOfficers.

RECOMMENDATION 10: Use funding recoveredfrom reduction of the number of National Officersand change to Non-residency to hire professionalmarketing staff and hire an Executive Director (morelater on the hiring proposals and the importance ofincreasing membership).

RECOMMENDATION 11: Update current removalprocess for all in elected and appointed positions.

The authority and duties of the new Board of Direc-tors shall include:• Establish and modify the national regions of the

Association.


• Establish policies and procedures for the conductof the business of the Association.

• Advise members, if appropriate, on the Associa-tion’s policies

• Hire, evaluate the performance of, and fix the com-pensation for, the Executive Director (see below).

• Determine and direct the manner and placement ofinvestments of the Association’s funds.

• Order and review annual or more frequent Associ-ation audits.

• Provide a President’s and Treasurer’s Annual Re-port as required by law

In addition, FON foresees that Board members mayprovide assistance and coordination, as requested, tothe State, and other, Representatives in their region, insuch areas as administration, advocacy, training, mem-bership incentives, and the like. They should not en-gage in technical or operational matters, however, butcould offer advice on them. Their role is to be the vi-sionaries and strategic planners for NARFE. They arefully accountable for the Association’s success or fail-ure. As part of the organizational budget process—tiedto its strategic goals--the Board will set the annual Na-tional membership dues amount every two years, inodd-numbered years.

RECOMMENDATION 12: Establish the regionally-elected Board members function as policy makers.

RECOMMENDATION 13: Board of Directors to setannual National membership dues as part of theorganizational budget process.

Board OfficersThe Board President shall be a member of the Board

in FON’s proposal and shall be elected every two yearsby the Board, not later than March 1 of odd-numberedyears. The President shall preside at all Board meetingsand be the primary spokesperson for the Board of Di-rectors. This official may also be a Voice of NARFE tothose outside the Association. The President shall belimited to three full two-year terms, plus any partialterm resulting from the death or inability to perform ofhis/her predecessor. A vacancy in the office of the Pres-ident shall be filled by an interim election of the re-maining Board members. The President shall be paid a

premium of 25% of the then current salary of Boardmembers. The President shall continue to reside withinthe region from which elected, unless the rare circum-stances discussed at the beginning of the Board sectionsuggest otherwise. With the concurrence of the Board,the President is authorized to appoint such Committeesas is prudent for the effective conduct of Associationbusiness (i.e., Finance Committee, Audit Committee,Executive Director Search Committee, PerformanceEvaluation Committee, etc.).

FON’s design includes the Board Treasurer as amember of the Board and elected every two years bythe Board, not later than March 1 of odd-numberedyears. The Treasurer shall be limited to three full two-year terms, plus any partial term resulting from thedeath or inability to perform of his/her predecessor. Avacancy in the office of the Treasurer shall be filled byan interim election of the remaining Board members.The Treasurer shall be paid a premium of 15% of thecurrent salary of Board members. The Treasurer shallcontinue to reside within the region from whichelected. Both the President and the Treasurer shall re-main as members of the Board while occupying theirrespective Offices. The President and/or the Treasurermay be removed from their Board Officer positions forcause by a vote of 2/3 of the other members of theBoard at any time.

RECOMMENDATION 14: Salaries of the BoardPresident and the Board Treasurer will becommensurate with their redefined roles.

RECOMMENDATION 15: Institute term limits ofthree terms for the Board President and the BoardTreasurer.

RECOMMENDATION 16: Create a removal processfor the Board President and the Board Treasurer.

Executive DirectorNARFE is a business and as such must be run by

those with demonstrated experience for the huge re-sponsibility entrusted to them. Those selected for topmanagement positions, such as Executive Director orBoard Director, must be the ones with the right andwell-demonstrated skills. They cannot be ones who



happen to be available to come to the HQ area, have ahistory of past leadership, and are very well intendedand/or popular. They must possess demonstratedbusiness acumen and other executive qualifications. Asthey should be held accountable for effective manage-ment of a multi-million dollar enterprise, their experi-ence and training must be of the best caliber suited tomanage a significant non-profit organization so it suc-ceeds in competitive surroundings. The Executive Di-rector is the key person in an Association to helpguarantee continuity and success via strong implemen-tation of long range planning toward strategic objec-tives. A NARFE Executive Director would assure westay strategically focused, as directed by the Board.FON sees that the value of continuity cannot beoveremphasized. Such can keep us out of peril and onthe right track.

FON recommends that the Executive Director shallserve as the Chief Executive Officer of the organization.He/she shall reside in the vicinity of NARFE HQ andexercise general supervision of all NARFE HQ staff.The Executive Director shall be hired by the Board andshall manage the NARFE HQ staff to Board-approvedbudgets and goals. She/he is accountable to the Board.The Executive Director, in consultation with the seniorprofessional staff, shall recommend an annual budgetto the Board for their review and approval. The Execu-tive Director shall have full hiring authority for allNARFE HQ staff, for example Comptroller, and Direc-tors of Public Relations, Communications, Legislation,Marketing and more.

Professional StaffProfessional staff of the organization envisioned by

the Committee shall serve under the supervision andguidance of the Executive Director. Staff performanceshall be evaluated by the Executive Director. Rationalebehind an immediate increase in professional market-ing staff is in the Membership section of this Report.Marketing expertise is paramount to campaigns andstrategies that grow our membership. Increased mem-bership is a must for our survival.

RECOMMENDATION 17: Hire a professionalExecutive Director to manage the NARFEHeadquarters.

State RepresentativesThe Federation of Chapters structure has served

NARFE well for many years, attracting some of ourmost talented and dedicated volunteers. It is supportedby substantial funding from 10% and per capitamonies. While Federation performance varies fromstate to state, all have engaged in a range of worth-while activities, including effective advocacy in somecases. However, as seen in all organizations, structuresand business practices that were the best possible atone time need adjustments to meet changing require-ments and new environments.

Given the unprecedented threats to our interestsand our dwindling resources, the FON concludes thatthe very valuable human and financial resources at theFederation level should be refocused and redirected toactivities that directly support our core mission. For ex-ample, it is doubtful we can continue to justify sendingan Area Director or District Vice President to chaptermeetings attended by less than 10% of chapter mem-bers who are engaged primarily in activities other thanadvocacy. At the National level, the FON believes wecannot afford the very significant time and dollar re-sources required for planning and running conventionsat the National and state levels. It is also evident, too,that people are far less willing not only to attend for-mal meetings or events, but also to take on responsibleroles of leadership or even followership.

To carry this logic further, the FON Committee’s vi-sion is highlighted by leaner governance and a moremission-focused organization. NARFE’s current struc-ture dates back to the post World War II era when com-mercial airlines had propellers, telephones used partylines, Polaroid cameras were being introduced, andgasoline was 17 cents a gallon. Chapters have and willcontinue to provide a valuable service to those whowish to participate. Federations of Chapters are cre-ations of those chapters. NARFE’s mission, seen inFON’s recommendations, will be accomplishedthrough a State level Representative/CongressionalDistrict Leader structure. Our current emphasis on in-ternal administration does not appear to serve ourbroad membership. The Committee vision does not im-pose the same ministerial duties upon chapters, allevi-ating them from burdens now requiring many handsand often Federation assistance. Under current NARFE


Bylaws, Federations are advisory only, with no powerover chapter operations. With much of the administra-tive workload lifted, and chapters freer to operatewithin the range of a new abbreviated Chapter Bylawsformat (to be developed), money currently being usedby Federations could be much more effectively used inattaining our mission, e.g. on behalf of the new leaneradvocacy-based structure.

On a personal level, NARFE members’ choices inmodern times encompass considerable options beforeand in retirement years—not available to many indecades past. They can and do spend hours with fam-ily, traveling, engaging in physical exercise and sports,taking advantage of cultural events, attending enrich-ment courses, becoming involved in political and civicactivities and issues, supporting their religious institu-tions and social and community clubs, and more. Theexpanding plethora of personal options for ‘free time’makes it difficult for NARFE to compete seriously formembers’ time and attention.

In the final analysis, only our members and our mis-sion are critical elements to NARFE. Chapter and Fed-eration infrastructure and meetings are not ourmission. Most of FON members have devoted years toFederation leadership and really struggled with thesedecisions. They ultimately concluded that the interestsof our current and future members must come first inrecommendations we make.

Therefore in FON’s structure design there shall be aState Representative (SR) for each US state, elected bythe Congressional District Leaders (see below) withineach state, in December of even-numbered years fol-lowing the biennial election of Congressional DistrictLeaders. There shall be two additional Representativesrepresenting the NARFE members residing in all non-US State areas (one for the District of Columbia, andone for all other non-US State areas), elected in thesame manner as other SRs. SRs and the two other Rep-resentatives shall serve terms of two years, with nolimit on the number of terms served, which shall runconcurrently with the terms of the US Congress. Theywould work under the guidance of NARFE’s Legisla-tive Officer (NARFE’s lobbyist and strategist) and Leg-islative Department, providing feedback thereto. SRs,and the other Representatives, shall be compensated(e.g., $200 per month, plus expenses), and shall be re-

sponsible for NARFE advocacy activities at the stategovernment level, advocacy of the state’s US Senators,and coordination with and participation on statewidecoalitions. SRs, and the other Representatives, may beassisted by NARFE volunteers willing to provide suchassistance in a variety of activities (advocacy, recruit-ment, retirement services, Alzheimer’s donation efforts,scholarship awards, FEEA fund-raising, and such.). SRsand the other Representatives will be considered con-tractors, performing with a written agreement of advo-cacy and financial accountability expectations.Monitoring of effective performance will be the respon-sibility of HQ staff via review of reports submitted.FON hopes that more focus on advocacy will help en-courage current and prospective members to becomemore active.

RECOMMENDATION 18: Transition from theFederation structure to a state advocacy structure.

RECOMMENDATION 19: Curtail Federation funds,and migrate funding to State, and other,Representatives, and for congressional legislativeadvocacy.

RECOMMENDATION 20: State Representatives andtwo other Representatives (replacing FederationPresidents) to become compensated.

State and other Representatives in New NARFEshall elect the regionally-elected Board of Directors,using a proportional voting system (one vote per vot-ing NARFE member residing in their state or area, i.e.,“one member, one vote”), with split voting authorized.State and other Representatives may be removed forcause by a vote of 2/3 of the Congressional DistrictLeaders in their state. A State or other Representativevacancy shall be filled by an interim election of the ap-propriate Congressional District Leaders.

RECOMMENDATION 21: State Representatives toelect the Board of Directors, using a proportionalvoting system.

Congressional District LeadersIn New NARFE there shall be one Congressional

District Leader (CDL) for each Federal Congressional



District. The Representative for the NARFE membersresiding in the District of Columbia may also serve asthe DC CDL. Other non-US state jurisdictions (i.e.,Puerto Rico/Virgin Islands, Republic of the Philip-pines, Republic of Panama) may also elect a CDL, asmay be appropriate. In addition, the State Representa-tive for those states having only one Federal Congres-sional District (i.e., Wyoming) may also serve as theCDL for that state. At the option of the CDL, AssistantCDLs may be appointed by the CDL (for example, forgeographic coverage or viewpoint differences or otherreasons). Working under the guidance of NARFE’sLegislative Officer and Department and providingfeedback thereto, each CDL shall be responsible for leg-islative advocacy within their respective CongressionalDistrict, including coordination of advocacy activities.CDLs shall be unpaid volunteers; however, reasonableexpenses in accordance with HQ guidelines will be re-imbursed by NARFE. Each CDL shall be elected in No-vember in even-numbered years, following theNational elections, by a majority of those votingNARFE members residing in the Congressional Districtwho choose to participate in the NARFE voting process(“one member, one vote”). An electronic (preferred),mail-in, or meeting voting process may be used forCDL elections, as determined by the incumbent CDL.All voting NARFE members shall be eligible to vote inthe biennial election of CDLs. CDLs shall serve termsof two years, with no limit on the number of termsserved, which shall run concurrently with the terms ofUS Representatives. The respective Representative foreach CDL may provide assistance and coordination tothe CDLs within his/her state, as requested, such as ifthere is no sitting CDL.

RECOMMENDATION 22: Establish CongressionalDistrict Leaders (CDLs) in each CongressionalDistrict.

RECOMMENDATION 23: Congressional DistrictLeaders will be reimbursed for reasonable expensesby NARFE HQ.

RECOMMENDATION 24: Direct election of CDLs byvoting NARFE members.

RECOMMENDATION 25: Structure NARFE’s electionprocess to coincide with the U.S. Congressionalelection process.

Congressional District Leaders in Future NARFEshall elect the State Representative for their state, usinga proportional voting system (one vote per votingNARFE member residing in their Congressional Dis-trict, i.e., “one member, one vote”), with split voting bythe CDLs authorized. CDLs may be removed for causeby a majority vote (of those voting) of the votingNARFE members residing in their Congressional Dis-trict. Where no CDL can be found for a CongressionalDistrict, the appropriate State Representative may ap-point an “acting” CDL or serve as the CDL, when nec-essary. Other Representatives for non-US statejurisdictions may be treated in similar manner, as ap-propriate to the situation.

RECOMMENDATION 26: Congressional DistrictLeaders elect State Representatives, or other similarRepresentatives, using a proportional voting system.

Multi-District LeadersAt their option, groups (two or more) of CDLs in

FON’s proposal may elect to join together into “Multi-District” action teams, under the direction of a Multi-District Leader (MDL). Multi-Districts may be formedbased on geographic, membership strength, or otherconsiderations. The MDLs would be elected by the par-ticipating CDLs for a term of two years, and may be re-moved for cause by a majority vote of the participatingCDLs.

Chapters The Committee sees chapters continuing as local

groups of NARFE members that have determined toassociate for a common purpose, often for networkingor educational purposes. US Postal zip codes shoulddetermine the boundaries of each local chapter in mostcases. However, in Future NARFE boundaries mayoverlap. For example, a workplace chapter formedwithin a zip code area of a chapter could not only be al-lowed, but celebrated. Existing local chapters at thetime of transition to Future NARFE shall continue es-sentially unaffected. New chapters may be formedthrough application to HQ. The local chapters will con-


tinue to be effective for all those who prefer that styleof participation. SRs may be available to assist chaptersin their activities. As recommended in previous studiesand surveys, chapter membership shall be available toany NARFE member, subject to the rules of each chap-ter, in addition to automatic membership in a state andCongressional District action team, under the directionof the corresponding SR (or Representative) and CDL.

To repeat what was said earlier in this Report, re-search and expert opinions of those who have workedwith other associations and organizations tell FON thatthere is little evidence today or foreseen of thrivingmandatory local chapter or state membership withinany national organizations. Therefore, if NARFE mem-bers choose not to be in local chapters this is not to betaken as an affront. It is, rather, a fact describing howmany in societies behave, and are expected to continueto behave. NARFE’s experience over the past severalyears is clear that incoming members attracted toNARFE’s mission are overwhelmingly non-participantsin chapters with formalized structures and meetings.The phenomenal growth of e-NARFE attests to this.This is further supported by outcomes of polls of e-NARFE members attesting to the fact that dues premi-ums have nothing to do with their choice of chapter.This evidence cannot be ignored. It should not, how-ever, mean that local chapters cannot explain benefitsof local membership and participation for those whoare interested. This is particularly true for those whobecome NARFE activists.

NARFE must embrace emerging ways to attract andretain members. Many practices effective in earlierdays are not what is needed now and going forward.While there are successful local chapter recruitmentcampaigns by some hard working members, there aremore instances of members attending events and com-ing up with minimal interest in NARFE. The wayNARFE does its business in general must cater to thedecisive shift to faster, direct communications, and farless chain of command flow. Non-traditional chapterssuch as e-NARFE are not needed in Future NARFE aschapter membership is totally optional in FON’s vision.Communications to and from members and prospectseverywhere can be instant and often, as well as self-ini-tiated.

In addition to the networking aspect of Chapter

membership, Chapters in Future NARFE are encour-aged to participate in legislative advocacy, membershiprecruitment, Alzheimer’s donations fund-raising, andother activities that may further the mission of NARFE.Chapters may also be asked to assist the State Repre-sentative, or other Representative, and/or CDL(and/or MDL) in advocacy or in any other NARFE ac-tivity such as those just listed immediately above.Chapters are required to meet minimum requirements,as may be established by the Board. Chapters musthave a Leader and a separate member responsible forChapter funds. Chapter bylaws shall be much simpli-fied and standardized to the extent practicable, withclear HQ guidance. Zip code referrals for local Chap-ters will still be available on the NARFE website.

In the FON Vision NARFE members can continuetheir membership in current or join future chapters.Members may transfer their membership to any chap-ter of their choice. However, membership in a localchapter has no effect on the “universal” aspect ofNARFE membership. A member is a member. All vot-ing members shall have representation in NARFE gov-ernance through their election of their CDL. Allmembers, voting or not, local Chapter members or not,shall be a part of, and are ENCOURAGED to partici-pate in, their appropriate Congressional District actionteam, (Multi-District action team), and state actionteam through their CDL, (MDL), and/or State Repre-sentative.

RECOMMENDATION 27: Local Chapter membershipwill become optional.

RECOMMENDATION 28: NARFE members areautomatically members of a Congressional Districtaction team.

MembersMany of NARFE’s loyal members were born before

or not long after 1945. They were and are joiners. Theprofiles of our present membership and that of ourprospective members are not alike. Prospects are theones on which we must concentrate our outreach ef-forts. They are our best hope for the future. They areyounger than most current members, with many in thebaby boomer group. They have been influenced by tel-



evision, space travel, civil rights movements, the sexualrevolution and evolution of the digital computer age. Ifthey join an organization they must see what’s in itspecifically for them. They are likely to be coveredunder FERS and included in the Social Security system.They are comfortable with computers, GPS, home the-aters, iPhones, iPads, tablets, and a host of technologydevices and means. They buy, bank, invest, communi-cate, research, book vacations, check weather, and moreon line. They subscribe to few if any newspapers or pe-riodicals. They are not the NARFE membership pool ofyesteryear. How they see NARFE and how NARFEmust appeal to them have to be quite different than itwas for the bulk of our current membership.

For these reasons, FON sees an urgent need to in-crease NARFE’s professional marketing staff. Thosewith experience in successful public relations and/ormarketing (not to be confused with recruiting) bring toour Association the skills, contacts, and wherewithal topackage what NARFE can do for the younger set andbring them into our fold. Strides in slowing our mem-bership decline recently are proof of the benefit of pub-lic relations and/or marketing expertise. We mustinvest more in that direction to build our ranks. Thebottom line is that successful marketing is a key tomembership growth.

FON recommends membership in NARFE shouldbe open to those individuals who support the missionof NARFE (universal membership). See more on thislater in the Report. Membership in NARFE shall consistof two types: voting and non-voting. Voting membersshall consist of those members who are Federal retirees,employees, or annuitants. Voting members may partici-pate in the election of their CDL. All other membersshall be non-voting.

RECOMMENDATION 29: NARFE membership isopen to all supporting its mission.

RECOMMENDATION 30: NARFE should increase itsprofessional marketing staff.

Fiscal Viability of NARFENARFE must operate like every other business to

remain open and viable as an organization working forthe benefit of its members. NARFE, like all entities,

needs money to operate and to grow. There are oppor-tunities for added dues revenues and non-dues rev-enues that can materially foster the Association’sfinancial strength so its mission can flourish. FON rec-ommends use of all possible sources of revenue thatcan be in keeping with NARFE’s mission and goals.FON also realizes reaping substantial revenue fromnew sources will not be instant.

We have serious doubts that the fiscal scenario forNARFE beyond 2014 is assured. We fear current mem-bership levels will not sustain four National ResidentOfficers, ten Regional Vice Presidents, and 51 HQ em-ployees. While NARFE’s current national leaders areputting serious controls on spending, and institutingprudent decision making, here are some clear examplesof how funding decisions impact what we do next. Fig-ures quoted here were developed by the NationalTreasurer at the Committee’s request.

By reducing the current National Resident Offi-cer positions from four to two, who were non-resi-dent (working from home, with occasional travel toHQ and elsewhere as needed) our savings would bein the range of $343,000 yearly. With a reductionfrom four to two officers remaining resident, thesavings would be in the range of $250,000 annually.The reduction to seven Regional Vice Presidentsfrom ten now in place can save approximately$100,000 yearly. Reduction to five Regionally-electedBoard members can save an additional $67,000 an-nually to be reallocated to more critical professionalresource needs. This saved money can be reappor-tioned to the hiring of a professional Executive Di-rector and a junior level professional marketingexpert in the near term. The cost of being seriousabout advocacy at the congressional district leveland at the state level can have a price tag, if fullyfunded for 435 CDLs and 52 State/Other Represen-tatives, of about $1 million annually. Spending forthis justifiably increased emphasis on true missionwould come from monies now issued to Federationsand/or levels sub-Federation. Activities for Federa-tions would be curtailed as transition occurs and wemove toward undergirding the roles and duties out-lined for Future NARFE’s governance and structure.A recommendation for this transition of funding ap-pears earlier in the Report.


DuesThe current dues structure evolved over the years

and has various specialized categories as well as tiersand grandfathered arrangements. A FON subgroupstudied a number of dues structures and classificationsfound in other organizations. A paper commenting ontheir research and findings is attached. In return fordues paid, NARFE must offer something attractive tomembers, such as strong advocacy, the informativeMagazine, timely announcements of emerging issues,opportunities to learn and grow and more. After analy-sis and discussions, the Committee came to conclusionsnoted below.

Distinguished designations should continue for cur-rent enrollees, but may not be available to new ones.Life membership should be reviewed periodically andactuarially, as it is now, to assure it is still prudent forthe Association, as well as an enticement for membersto stay for the long haul. Those in these two categoriescurrently are not likely to leave NARFE if these optionswere discontinued. Likewise, discounted rates formulti-year memberships or for dues withholdingshould continue, and perhaps be expanded if analysesshow them to be beneficial to retaining members. Thesediscounted categories have proven to be excellent re-tention tools as well as good buys for members.

FON also concluded that there should be no duesreduction at this time for couples or partners whoboth wish to belong. The Committee reluctantly cameto this decision, despite the knowledge that some or-ganizations offer free or reduced spousal/partnerrates thereby increasing their rolls considerably. Atanother time when NARFE’s financial picture may beimproved dramatically, this concept should be re-ex-amined. The Board may wish to consider this conceptas an incentive in a small test segment and evaluatethe results.

FON recommends that increased revenues comefrom several new efforts, other than those describedabove or what we termed ‘Classic’ membership. Achart illustrating FON proposed dues categories is at-tached. Distribution of dues monies in Future NARFEwould be commensurate with ideas discussed in thisReport, necessitating cessation over time of new 10%funds to current Federations. The Committee did notattempt to offer opinions on specifics of dues distribu-

tions.One effort to increase both financial support and

membership numbers would be the expansion ofNARFE membership to any and all individuals whowish to support our mission. These might be called ‘Pa-triot’ members. FON sees no reason to keep member-ship exclusive to only those whose wallets will beimpacted by legislative victories or losses. Many otherorganizations have Open Door membership policies,benefiting their name recognition and finances. Theother individuals who choose to join should pay thesame rates as voting members, and have the same ben-efits except voting privileges. Income from these newlyeligible to join would increase our revenues. It wouldalso send positive signals to our Magazine advertisers,and to those on Capitol Hill and elsewhere about thesize of our rolls. This would also address the concernthat presents itself now when a good friend, relative orneighbor of a current NARFE member wishes to jointhe Association, is not eligible, and is told “no.”

Youth up to age 26 should be welcomed as mem-bers at a reduced rate, e.g. $10 per year. These non-vot-ing added members would receive a number of definedbenefits, including the Magazine, which helps our ad-vertisers remain with us. Most likely youth memberswould be in school, possibly in public administrationfields of study. Opening membership to them will notbring a groundswell of new members, but can demon-strate our encouragement of good government andpublic service, enhance the NARFE brand, and derive afull dues paying member in later years. This type ofmembership would require birth date information soour data base would not retain Youth members pastage 26. Youth members may also be excellent candi-dates to help support NARFE activities at all levels ofour structure via unpaid internships or other volunteerarrangements.

RECOMMENDATION 31: Open NARFE membershipto Youth, up to age 26, at a reduced rate, e.g.$10/year.

SponsorsA large number of successful non-profit associations

derive income from non-dues revenue. On the otherhand, nearly 70% of NARFE revenue is currently de-



rived from membership dues. When NARFE has signif-icant income from non-dues sources low cost or freememberships can then be used to build high volumemembership to increase advocacy clout. Non-dues rev-enue is most often derived from offering coursesand/or certifications, special interest education, such asspecial events and tours, or sales of products, e.g. inbookstores, or services, such as counseling. There arealso corporate sponsorships that offer the contributingsponsor substantial exposure to the association’s mem-bers. Additionally, affiliate programs offer worthy dis-counts if an association’s members get a service orproduct targeted to them. Sponsorships of NARFE canbe achieved and fruitful revenues from non-duessources can be negotiated for NARFE. FON recom-mends such talks be held at the earliest opportunitiesand materially promoted by a professional ExecutiveDirector of Future NARFE who should be accustomedto engaging in such negotiations.

RECOMMENDATION 32: Vigorously pursue non-dues revenue sources.

501(c) (3) FoundationNARFE can meet the conditions of Section 501(c) (3)

of the US Internal Revenue Code that allows creation ofa separate entity capable of accepting donations thatare tax-deductible to the donor. There are numeroustechnical details regarding having an entity under thatprovision, but the conditions would be workable forus. The bottom line is that it permits establishment ofan educational foundation. One of our major problemsis that NARFE is largely unknown among the generalpopulation and among current Federal employees whoare our next generation of potential members. This lackof recognition hinders our advocacy efforts and recruit-ing. With use of the provisions in this specialized partof the IRS Code, NARFE could receive tax deductiblecontributions and/or grants from individuals, corpora-tions and foundations. These funds could be used toeducate the public on issues of concern, increase ourname and brand recognition, and enhance our legisla-tive efforts.

RECOMMENDATION 33: NARFE should seriouslyconsider establishing a 501(c) (3) foundation.

ConventionsWith the implementation of Future NARFE, FON

predicts the character of the traditional state and na-tional level conventions will change. Association busi-ness will no longer be conducted in these venues, butby the Board of Directors. Therefore, innovative eventsand conferences where NARFE members gather tomingle, learn, socialize, travel, and stay abreast of help-ful tools and techniques for being in NARFE and serv-ing as a NARFE leader for advocacy and other missionassociated purposes would evolve.

RECOMMENDATION 34: Conventions shouldtransition into conferences and other events.

Technology, Communications, and SupportNARFE is making strides to modernize its use of

technology, and social media, both to manage its opera-tions and to communicate with its leaders, membersand prospective members. Clearly, the world is em-bracing electronic and digital methods. The world is re-moving filters and time delays in how informationflows and business is conducted. NARFE must do thesame. It is no secret we have been well behind thetrends which affects our hopes to appeal to and retainnewer, younger members who are our future. NARFEhas not hastened to use modern business tools, or digi-tal marketing, sometimes simply because we had nofunds to do so. The FON Committee is well aware thatretaining practices that work for most senior membershas importance. It is imperative that we do not losethem on our way to updating our methods.

Establishment of NARFE’s Configuration AdvisoryBoard, with its representational membership drawnfrom across our organization, is a praiseworthy innova-tion in NARFE’s management tool box. Its work hashelped transition the Association’s restricted, out ofdate member records data base access to one that mem-bers and those in positions needing access to memberdata can use and use in real time, with up to the minuteinformation. NARFE has much work ahead as it turnsattention to more and more ways to help staff at HQand across NARFE check trends, perform analyses,make appropriate data changes, and work efficiently.Much more can be done to bring Current NARFE intoFuture NARFE via being serious about dynamic ways


to connect and communicate. Ideas include: A NARFE‘app’ featuring alerts, news, legislation updates, serviceannouncements, discount information regarding affili-ates who offer member ‘perks’, interactive websites,regular webcasts, chat facilities, and constantly up-dated ‘kits’ for member activists and officers. Clearly,NARFE must invest in the most modern forms of pub-lic relations and communications. NARFE should alsoseriously consider increased advertising in areas out-side the DC Beltway and through no-cost public serviceannouncements.

RECOMMENDATION 35: NARFE must use the mostbeneficial technology and communications methodspossible.

Transition and Timeline for Future NARFEThere are major changes recommended in this Re-

port for the revitalization of NARFE and for it to be-come more proactive, rather than reactionary. NARFEmust change in order to survive. Not all needed changecan be or should be done at once. A well thought outtransition is called for. FON believes the top three areasto address include: (1) Moving from four National Resi-dent Officers to a structure with two non-resident ones,(2) adopting a complete change in governance, includ-ing the increased use of professional management, e.g.with an Executive Director and increased professionalmarketing staff, and (3) abolishing mandatory chaptermembership.

In an attempt to show how the Vision proposals inthis Report might be phased in over time for the goodof the Association and for its strong survival and serv-ice to the Federal civilian community for many years,attached are suggested options laid out in timelinestyle. They offer some reasoned, priority-driven, rela-tively rapid transition ideas, and some less rapid.

Option A was developed with a couple of points inmind. First, asking the delegates to the 2014 NationalConvention to comprehend and adopt 30 plus recom-mendations for Bylaw changes and resolutions wouldbe optimistic, and might lead to further delays in whatthe FON Committee believes are critical and time-sen-sitive changes. Second, the suggested time line at-tempts to align the necessary changes to fit into a newelection process (and timing) outlined in the vision -

basically running from November, even-numberedyear (i.e., 2016) through March 1, odd-numbered year(i.e., 2017).

A key element in moving towards Future NARFE isthe adoption of an agreement/resolution, in 2014, en-dorsing the vision of Future NARFE. The other urgentitems, for the immediate future, are the restructuring ofthe NEB (from 4 to 2 NROs and from 10 to initially 7RVPs) and the adoption of “universal membership”(i.e., dropping mandatory Chapter membership).

The Committee understands that NARFE needs toconstantly evolve and that the National ExecutiveBoard (NEB) is in charge of NARFE. It is the Board’sjob to set the Vision, do strategic planning, and manageall things relating to transition, implementation, andassessment. Options provided here, and throughoutthe report, are presented as potentially helpful guid-ance for NEB discussions, if they choose to consider it.

Appreciation and Looking ForwardMembers of the Future of NARFE Committee were

privileged to be appointed to work on this urgent, im-portant undertaking. We salute all the contributionsand achievements of those who have been so faithful tothe Association and its mission through the years. Weare optimistic that with successful transition to and im-plementation of the proposals offered here NARFE willbe strengthened materially and be in business fordecades to come. We envision not leaving our roots,but building on them; not foregoing who we are, butbringing others to our side. Above all, we see our rec-ommendations as right for the challenging and chang-ing times we face and as true to our mission which isour highest responsibility.

Other Voices> Winston Churchill: To improve is to change. To be

perfect is to change often.> Dr. Martin Luther King: If you want dreams to

come true, wake up.> Lewis Carroll: If you limit your actions in life to

things that nobody can possibly find fault with,you will not do much.

> President Franklin Delano Roosevelt: Rules arenot necessarily sacred, principles are.

> Nike: Just do it. n


30 NARFE Insider Quarterly News for NARFE Leaders NEB Review of FON Report and Recommendations

The National Executive Board Review of the Future of NARFE Report and Recommendations

February 25, 2014

The National Executive Board (NEB) reviewed and discussed in detail the Future ofNARFE Committee (FON) Report and Recommendations. The Board is in generalagreement with the document. Some of the specific recommendations are discussedbelow.

The Board agrees that recommendations 1, 2 and 3 should commence immediately.For recommendation 4, it was agreed to realign the current 10 regions to five re-gions; this change will be effective at the beginning of the new term, November 1,2014. (See map, p. 31 of this issue of the NARFE Insider.)

Recommendations 9, 27, 29 and 31 will be developed into bylaw amendment reso-lutions for consideration at the 2014 National Convention. At this convention, thedelegates will be requested to approve the redesign of NARFE as proposed in theFON Report.

Recommendations 10 and 17 will be implemented by NARFE Headquarters after the2014 National Convention. The bylaw amendments to implement the remaining FONrecommendations will be developed for consideration at the 2016 National Convention.

In reviewing recommendations 19 and 28, there was concern about exactly how toaddress the issue of those members who do not currently reside in a congressionaldistrict. Therefore, the Board agreed to exempt the Philippines and Panama fromthese recommendations.

The Board agreed to include additional legislative staff to recommendation 30,which calls for increasing the marketing staff.

All the other recommendations were accepted by the Board as presented in theFON report.

31 NARFE Insider Quarterly News for NARFE Leaders New NARFE Regional Map

Region IConnecticut Delaware Kentucky Maine Maryland Massachusetts New HampshireNew Jersey New YorkOhio Pennsylvania Rhode IslandVermontVirginia West Virginia

Region IIAlabama FloridaGeorgiaMississippiNorth CarolinaSouth CarolinaTennessee

Region IIIIllinois IndianaIowaKansasMichiganMinnesotaMissouriNebraskaNorth Dakota South Dakota Wisconsin

Region IVArizona ArkansasColoradoLouisianaNew MexicoOklahomaTexasUtah

Region VAlaskaCaliforniaHawaiiIdahoMontanaNevadaOregonWashingtonWyoming

New NARFE Regional Map Approved by NEB at Feb. 24-27 Meeting

606 North Washington StreetAlexandria, Virginia 22314-1914

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