First of all it should be pointed out that over the past decade, a powerful private sector funding trend has emerged. The following tendency could be easily seen: forward-thinking and successful economic development organizations across the country have increasingly moved from a membership model to an investor-based approach through campaigns that fund multi-year programs. The point is that by doing so, these leading organizations have dramatically boosted funding levels, developed more engaged volunteer leadership, started making greater long-term benefits for their communities and, in general, become more concentrated, accountable and measurable.
If you are interested in this issue (and you more that likely are since you are reading this article) then it will be interesting for you to find out that the membership model typically charges annual dues at specified levels. Its implication is that the business will have joined an organization, will receive services in exchange for the dues and will be supporting a worthwhile mission. Funding levels in this method are naturally limited. It should be also added that a membership model of funding not only limits initial funding levels, but can constrain an organization’s ability to significantly increase funding in the future.