Affinity groups. Creation of a standardized database. Industry trend reports. Web enhancements and improved member access to databases. Improving accreditation and peer review processes. Growing numbers of international member institutions.

All of the above are part of the ongoing effort by AACSB to better serve its members. But, to no one’s surprise, improved service and new programs cost more, and it has been awhile since AACSB has taken a comprehensive look at its financial revenue structure.

About a year ago, then-president Joseph A. Alutto (Ohio State business dean) appointed a task force to make recommendations for adjusting dues and fees. The group’s report is in, and it calls for a dues increase for the first time since 1986, along with a hike in accreditation fees for the first time in six years.

Blame inflation, along with the desire to improve existing services, while meeting demand for new and ambitious projects, said AACSB 1999-2000 President Bob Taylor.

"There are several reasons for a proposed increase in dues and fees," he said. "First, there has been substantial inflation-based erosion in revenue. Current business dues of $2,100 should be at an inflation-adjusted $3,192 just to remain even with 1986 value. Business and accounting dues of $5,168 would be required today to remain at an inflation-adjusted level of $3,400 in 1986.

"Second, AACSB is nearing the point at which it lacks the required carry-forward reserve to assure financial stability," Taylor continued.

"Finally, there is a need to fund the agenda 2000 elements to which AACSB has made a commitment."

The task force is calling for a dues increase of $600 for accredited members and $700 to $800 for non-accredited members. This represents an approximate doubling of dues for non-accredited members. This category has been minimally adjusted throughout the last 20 years.

"Accredited member dues increases of 20 to 30 percent reflect the recent adjustments to the dues and fees of accredited members, as well as the additional proposed accreditation fee increases in the 50 to 70 percent range," said Taylor.

The actual proposed dues and fees increase percentages by category might be slightly higher or lower reflecting actual costs and/or economies. The proposed accreditation fee adjustments, if approved, will be applicable only to schools entering the process after the 1999-2000 academic year.

Jerry Trapnell, dean of the College of Business and Public Affairs at Clemson University, and head of the task force, said AACSB’s expanding international efforts helped drive the proposed increase.

"AACSB has to function on a global basis, and to do that we have to look like, act like and function like a global organization," he said. "One of the things we have proposed is an end to distinctions in dues and fees between domestic and international members. If we are truly an international organization, then our dues and fees should reflect that," he said.

Trapnell said that despite some minor adjustments in its dues and fees structure, AACSB had not taken a comprehensive look in some time and needed to do so because of some of the major initiatives it had undertaken.

"We reached a ballpark figure of the necessary additional revenues needed to adequately fund these initiatives on an ongoing basis, and to secure the financial stability of AACSB for the future. After much debate and discussion, the current proposal was agreed upon unanimously," Trapnell said.

The fee increases will help support the following AACSB efforts:

• Developing the human and technological resources to accomplish the strategic agenda
• Enhancing the AACSB data and information service
• Maintaining and improving accreditation peer review processes both domestically and globally
• Offering differentiated services responsive to the needs of specific segments of AACSB’s educational and corporate members

"We are indebted to the task force for its thorough analysis and thoughtful deliberation," Taylor said. "It is comprised of deans who constantly address the challenges of academe and the realities of budgets.

"They represent the diversity of our membership: domestic, international, large, small, public, private, educational, corporate, administration and faculty," he said. "Thus, I have confidence that their report is in the best interests of each member and of AACSB as an organization."

The recommended accreditation fee structure is as follows:

* The eligibility fee for international schools seeking accreditation is non-refundable, but applicable to the initial application fee for schools determined eligible for application.

Assumptions: The above schedule assumes that schools that enter the accreditation process during 1999-2000 under the old schedule will continue under the same schedule, but candidacy schools will begin paying the higher maintenance fees.