Michael Coslo wrote:
Phil Kane wrote:
On Wed, 22 Aug 2007 16:42:00 EDT, Michael Coslo wrote:

Around $815 at 5 percent annual interest. In itself not too bad,
but they didn't just invest all that money. Some percentage had to go
toward operating expenses.


My impression was that they invested the money and lived off the
interest without touching the principal.



Hey Phil, I think you are correct, but you could maybe clarify this for me.

On the audit from a couple years ago, I read the following:

Quote:

"The by-laws of the league provide for life membership in the league for
25 times the term membership annual dues rate. Dues are deferred and
recognized as income over the estimated life expectancy of the
respective life members (approximately 34 years). Investment earnings on
allocated life member investments are deferred and are recognized as
dues at an amount representative of the estimated cost to the league for
providing services to the life members."

End quote

If I read this correctly (and you would know an awful lot better
than me, so correct at will)

The life member pays their money (25X current dues)

The interest from the investment is considered the members dues.

The principle money is recognized as earnings over a period of 34
years.

Or does that mean that the principle is released after 34 years?

Where I might have a little confusion is that if the principle of
the lifetime memberships is always off limit is that they should be in
the "permanantly restricted" category.

Life Membership works out well for the League and can be a great bargain
for the member. I'm 58 and I became a Life Member almost thirty years
ago. I paid 25 times the 1978 dues. Dues have risen a number of times
over the decades and are currently more than four times what I paid for
Life Membership.

The downside is that my QST doesn't come in either a paper wrapper or a
plastic envelope any more. QST content has been stripped away over the
years. I need to pay extra for QEX for the good technical articles,
station activities and the bulk of contest results are only on the web.
I can always pay extra and become a member of the Diamond Circle and
[tongue-in-cheek mode on] have a League Official drive to my home and
deliver my QST on the day of printing.

Dave K8MN