MEMBERSHIP UPDATE

Gordon Borteck, Vinny Errigo, III and Megan Hayes, Membership Co-Chairs

Katie Gaertner, Director of Membership

Membership

After developing a dynamic membership model in Fiscal Year 2022 that significantly improved our understanding of the Club’s membership make-up and dues revenue drivers, we are delighted to share that by all accounts Fiscal Year 2023 was a very positive year of growth for our Club

Fiscal Year 2023 Highlights:

The addition of 19 Regular Members

The addition of 37 Oak Leaf/Acorn Privilege Holders

Just 14 Regular Member resignations/transfers, far less than our historical average of 27 Membership Dues revenues exceeded budget by more than $200,000 ($6,024,993 vs $5,802,204)

Oak Leaf/Acorn renewal rate of 89% vs goal of 75% Oak Leaf/Acorn conversion rate of 79% vs goal of 75% A Membership count of over 600 (the first time since 2008)

Oak Leaf/Acorn Program

In 2021 the Club successfully relaunched its Oak/Leaf Acorn program which now boasts 112 Privilege Holders. As we enter Fiscal Year 2024, we are pleased to report our Oak Leaf/Acorn program is now the Club’s largest driver of Regular Members. While on-going member introductions are critical to sustaining our membership, this program has helped to create an internal pipeline for future growth In the upcoming Fiscal Year, we have 28 Oak Leafs/Acorns slated to convert to Regular Member If our conversion rates remain strong, which we expect that they will, we are in a position to add over 20 Regular Members to the Club’s membership in Fiscal Year 2024

Initiation Fee Increase

With the increased interest in our Club and the significant improvements we ’ ve recently made to the Club’s facilities, in Fiscal Year 2023 the Board determined that it was an appropriate time to re-evaluate the Club’s initiation fees In evaluating such an increase, the Board consulted with industry experts and benchmarked against peer Clubs in the region to ensure we stay competitive, while also reflecting the exceptional value The Tuxedo Club brings to our new member candidates We’re pleased to report that we successfully developed an initiation fee increase strategy, and on June 1, 2023, the Club’s higher initiation fees of $40,000 for Regular and $10,000 for House went into effect These higher fees not only honor the value of our Club, but will be used to fund important Club capital projects in the coming years.