Membership Credit Management for Associations
- Anthony Gentilcore
- Jun 1
- 4 min read
Optimizing Accounting Practices – Part 2
Associations invest significant effort in attracting new members. However, some members do not participate in activities and, by year-end, feel they have not received value for their investment.
So what can associations do?
Active member participation is essential to the success and vitality of any organization. To address this challenge, more and more associations are implementing membership credits.
Table of Contents
What Is a Membership Credit?
To better understand the concept, consider the following scenarios:
Scenario A
Association A offers an annual membership for $300, with activities costing $100 on average.Despite receiving emails and calls, the member does not attend any events.
Result: dissatisfaction and perceived lack of return on investment.
Scenario B
Association B offers a $450 membership, including $150 in membership credits.
With this model:
the member attends one activity for free
pays 50% for the second activity
Even if the initial sale is slightly more difficult, the association demonstrates value throughout the year.
Advanced Model
Some associations go further:
Example: $1,000 membership with $800 in credits
This model strongly encourages participation and engagement.
Flexible Configuration with a CRM
With a platform like Membri:
multiple membership types can be configured
no additional workload is required
offers can be adapted based on member behavior
This flexibility increases satisfaction and retention.
Credit Validity Period
Most associations align credit expiration with membership expiration.
However, this is not mandatory.
You can:
allow credits to remain valid longer (e.g., 2 years)
as long as membership stays active
Benefits:
stronger renewal argument
reduced frustration
increased activity participation
Exceptions: Protecting Revenue Streams
Some events generate significant revenue:
galas
golf tournaments
fundraising events
Membership credits should not cannibalize these revenues.
Solution:
restrict credit usage for certain events or products
This maintains revenue while still offering member value.
Revenue Recognition (Critical for Canadian Associations)
From an accounting perspective:
membership credits are not recognized as revenue at purchase
they are recognized:
when used
or when expired
This ensures financial statements reflect reality.
Automating Revenue Recognition with Membri
Membri can:
manage credit validity
control eligible activities
automate accounting entries
sync with accounting systems
Additionally:
event revenues can be recognized on the event date
treated as deferred revenue beforehand
This aligns revenue with service delivery.
Benefits for Associations
Implementing membership credits provides clear advantages:
Increased Cash Flow
Credits incentivize renewals and increase upfront payments.
Higher Participation
Members are encouraged to attend activities.
Stronger Renewal Argument
Unused credits can be retained, reinforcing perceived value.
More Accurate Revenue Allocation
Revenue recognition aligns with real activity usage.
With Membri, all of this can be configured easily—without adding administrative complexity.
See Membri in Action
Discover how Membri helps associations:
increase member retention
automate financial processes
improve engagement
Contact Us
Contact us today to learn how Membri can transform your association and maximize member participation
FAQ – Membership Credits for Associations
What is a membership credit?
A membership credit is a prepaid amount included in a member’s annual membership that can be used toward activities, events, or eligible products offered by an association. It helps increase participation and demonstrate value throughout the membership year.
Why do associations offer membership credits?
Associations offer membership credits to encourage participation, improve member satisfaction, and strengthen retention. Membership credits help members experience the value of the association by reducing the cost of activities and encouraging engagement.
Do membership credits expire?
In many associations, membership credits expire at the same time as the membership. However, some organizations allow credits to remain valid for a longer period, such as two years, as long as the member maintains an active membership.
Can membership credits be used for all events and products?
Not necessarily. Associations can restrict the use of membership credits for certain high-revenue events or flagship products, such as galas, golf tournaments, or fundraising activities, in order to protect important revenue streams.
How are membership credits recognized in accounting?
Membership credits are generally not recognized as earned revenue at the time of membership purchase or renewal. They are recognized when the credits are used to pay for an activity or when they expire, helping associations align revenue recognition with actual service delivery.
Can revenue recognition for membership credits be automated?
Yes. With an association management platform like Membri, organizations can automate credit validity rules, excluded activities, and accounting entries, helping ensure more accurate and efficient revenue recognition.
What are the benefits of membership credits for associations?
Membership credits can increase renewal cash flow, encourage member participation, provide a stronger value proposition at renewal time, and improve the accuracy of revenue allocation in financial reporting.
Are membership credits useful for Canadian associations?
Yes. For Canadian associations, membership credits can support member retention, improve engagement, and strengthen accounting practices by aligning revenue recognition with actual usage and participation.
