Over the last decade here is what local Masonic Lodges should have been doing.
They should have increased their dues sufficiently to not only pay for the running of their Lodges but also have salted away some money in the bank account and investments. Instead of doing fund raisers they should have looked for additional income by renting out their Masonic Hall or any collateral property attached to the Hall owned by the Lodge.
They should have been seeking endowments from their members and instead of authorizing the Treasurer to take the extra income down to the bank and buying a CD, the Lodge should have hired a certified financial planner.
In urban and suburban situations Lodges in one area should have tried to operate all from one building. If you travel to England you can find as many as 20 Lodges meeting in one building, and Brothers paying $20 or more each meeting for a meal and the festive board. In our very mobile modern society where there was once a Lodge in every town, today it would be much more economical to have just one Hall per Masonic District.
These ideas have certainly been posted on this site before. So why repeat them now?
With Europe collapsing before our eyes; with the United States economy faltering, unemployment above 9% with no signs of abating, GDP growth in the neighborhood of an anemic 1%, the stock market tanking, one has to wonder about the financial stability of Masonic Lodges.
Those that have refused to run their Lodges like a business and have insisted on doing Masonry on the cheap may not be able to survive if the country’s economy continues to worsen. Especially vulnerable are rural Lodges and Lodges who cannot consolidate buildings. Those Lodges with a building all their own with no tenants, low dues and no money in the bank account or in investments probably will not survive.
We could be looking at the largest amount of Lodges disbanding and turning in their charters in the history of this nation. If we are it will be because many Lodges refused to take the necessary steps to put themselves on a sound financial footing when they had the opportunity. Any good businessman will tell you that you salt away some money in good times for a rainy day fund to tide you over in bad times. Lodges that failed to look ahead, failed to do any long term planning and operated by just squeaking by will suffer the consequences and pay the ultimate price.
Brother, I hear you. I have been saying the same thing since I started in Masonry as an officer. I was once a member of a lodge that was losing 30% of income on nonmember payment. We were forced to pull from limited investments to cover costs. I suggested dues changes and Lodge mergers. I was looked at like a monster! They were happy to defunk then solve the problem. I did a presentation on the business of Freemasonry and what must be done in order to make it. My Lodge has worked hard to adopt the simple principles of Dwight Smith and now Andrew Hammer and the KOTN. It worked. We are growing and fiscally stable even in the mists of market flux. I think the mass lodge closer that are to come are a boon to our order. In order to be strong again we have to let the weakest parts fall off. It is going to be hard but it must happen. Those who hear the warning now will weather the storm those that don’t will not make it.
Hmm…financial planner. I’ll be sitting in the East in a few months, and this is very interesting idea. We have a committee to create a five-year plan for the lodge, but we never considered professional advice. Thanks for planting the seed; this is going in my list.
This article is one of the most important that’s been published in awhile. If you don’t plan for the future, there won’t be a future.
Halcyon Lodge in Cleveland, Ohio, changed the way it operates back in 2007. Since that time we’ve been growing and renovating our 80 year old temple. This past weekend we added another $30,000 in improvements.
When we tried to tell the other lodges that both business and logistical planning were necessary for their future survival, they laughed at us. As a result many have lost their buildings and been forced to merge with other lodges. This year the Scottish Rite was forced to sell their building.
We’re willing to help other lodges learn how to plan and invest, if they’re interested. It’s not easy at first but it’s worth the effort. You can learn more at http://www.halcyontemple.org.
We too saw this back about 2000 and started a force savings program. Any estate monies coming to the lodge were at that time invested in CD’s but as the rates started to drop, a member which worked for an investment firm who also had many times mentioned that the lodge should be looking at better returns, was contacted and a combination of Ginnies and Freddies were picked up with the matureing CD monies. The interest and principal were kept separate as the notes were paid off with the principal reinvested now in preferreds with 6 and 7+% returns. The lodge has not raised it dues except for the Grand Lodge per capita increases. A yearly review is done on the dues and with the returns from the investments, resulting in most years giving more for scholarships and youth group contributions.
Problem with most lodges are that in executive boards seats are older gentlemen’s who don’t want any changes: “We always did this way…”
Yes, we can rent the lodge hall, we can raise membership dues but we can work harder to get new members and change our attitude toward Masonry in todays needs…
Hey family, I agree there might be cost that must be cut, to tell you the truth you will cut some where to stay afloat but if it do happens I pray it will for good of the order because growth is needed (Moving Forward).
i, recall when i was master of my lODGE I TRIED TO RAISE DUES ANDTHOUGHT I HAD STOLE THE KEY TO GET IN. i AGREE THAT SOMETHING NEEDS TO BE DONE. sOMETHING RUNNING IN MY MIND THAT WILL PROBABLY NEVER COME TO FRUITION IS we NEED A SUPER Grand Master ON THE LINE OF THE SUPREME COUNCIL SORRY BROTHERS BUT THATS HOW I FEEL
Thank you for this post.
This article is very important. Our future is very important.
David Star
I think this is a very good point. I belong to a very small rural lodge and we are doing ok because we own enough rental property to make money. I do think it is important for lodges to make wise financial decisions.
GREAT IDEA—–I TRYED IT===AS MASTER OF MY LODGE RAISED DUES FROM 15 TO 25===IT BARLY WORKED====LATER ON ===LODGE GOT INTO REAL BAD MONEY TROUBLE===RAISED DUES TO 50===HOLY HELL===IT WAS THE END OF THE WORLD===WHILE I WAS GONE===LOWERED IT BACK TO 25===TO THIS DAY MY LODGE IS NOTHEN BUT A PLACE FOR POLITICANS TO MEET AT—LIES WERE MADE UP ON ME===IM EXPELLED FROM MASONRY FOR LIFE===DENIED A TRIAL TO CLEAR MY NAME FROM THE GRAND LODGE OF ARKANSAS====GRIN===BE DAM CAREFULL HOW YOU TRY HELPING YOU LODGE IN THIS ECONAMY COLLAPSE
I much prefer informative articles like this to that high brow liteautrre.