ECF Funding - An Attempt to Take Stock
Posted: Wed Mar 16, 2011 1:03 am
It's midnight, I feel in desperate need of sleep but am failing miserably to drop off, so I thought I'd turn the time to productive use.
The main ECF Funding thread has grown to 528 posts and 36 pages. I'm genuinely grateful for the energy of the contributors. It does help to hear their views. However, it's become a problem to see the wood for the trees, even for those of us who've been trying to follow it from the start. This new topic is an attempt to take stock and perhaps to offer a jumping-on point for latecomers. For everyone else, I hope it will help provide a focus by homing in on the core issues.
It's important to remember that, useful as it is, the Forum tends to showcase a relatively small number of views. It's hard to know how representative of the wider chess-playing population it is, but it's probably a decent guide. I have the additional resource of e-mails received directly in my capacity as ECF Chief Executive, and I'll try to reflect those here as well.
This all started with a problem. The ECF lost its Government grant and, despite its best efforts, finds itself facing an annual funding shortfall of about £17,000, assuming that it continues to deliver all the things it does now. I published a paper outlining two ways in which the shortfall could be addressed.
(1) A UNIVERSAL MEMBERSHIP SCHEME which would cost every graded player £18 a year.
As far as I can judge, this is a fair summary of views:
(a) There is probably a majority in favour of a universal membership scheme in principle.
(b) In practice, the figure of £18 is simply too high. Even a proportion of existing Membership Organisations (MOs) are worried that take-up would fall and/or that leagues would choose to exit the ECF.
(c) Collection of membership fees is unclear. I envisaged an extension of the existing arrangements in MOs, which are loose but basically leave it to local organisations to sort out (in return for a 10% slice of what's raised). Some feel that this is too vague, too complicated (if players are involved in multiple leagues) or simply wrong, i.e. collection centrally by the ECF would be better.
(d) The proposal is unfair to relatively inactive players and would drive too many of them away from the game. The de minimis threashold for ungraded players/newcomers needs to be extended to graded, but relatively inactive players.
Based on this feedback, my conclusion would be that this option would be very dangerous. The likelihood seems to be that the take-up would be well below the assumed 85% and that this would then require a higher membership fee, which would drive take-up further down (or drive more organisations away entirely), requiring a higher fee, and so on.
(2) SIMPLIFIED VERSION OF GAME FEE + MEMBERSHIP OPTION, with a standard Game Fee of about 70p.
There has been a lot less feedback on this, but what there has been would suggest:
(a) The increase in Game Fee is high enough to risk driving away a certain number of leagues and organisations. This would in turn reduce the funds raised.
(b) For MOs, this option still requires a Basic membership fee of £18, which is too high (see above!)
My impression is that this would probably be tolerable for a higher proportion than option 1, BUT it would still see a number of "exits", which would initiate to some extent the kind of "doom loop" that I described under option 1.
In response to comments posted, I attempted to model what a "GAME FEE ONLY" solution would look like. Depending upon different approaches to what the ECF does, this would result in a standard Game Fee of between about 65p and 72p (with the usual reduced rates depending on event type).
This generated very little response on the whole, and I would interpret this as meaning that the increase in the headline Game Fee rate would be as unpalatable for some as under Option 2, so the chances of significant numbers of organisations walking away would be high. I didn't sense any momentum for a push to reinstate this as an option for Council to consider.
Based on the above reactions - i.e. no matter how you present it, the simple fact is that these options will be too expensive for some and will reduce the size of the contributing pool, thereby reducing the amount raised, leading to further attempts to increase the rates to catch up again - my conclusion is that the focus needs to shift to the COST side of the equation.
I presented an explanation of how the ECF currently spends the money it raises and invited people to suggest how it could be cut. Responses have been remarkably muted, which makes me think that this prospect doesn't attract many people either. The one exception is the view held by some that too much money is spent on administration (i.e. the ECF office). I have argued that there is an underestimation of the importance of the office in underpinning the work of the 50-odd volunteers who deliver the ECF's work as a whole, but I haven't persuaded everyone. I've also registered my uneasiness with the implied requirement that a "solution" be found to all of this that essentially involves finding people who are willing to do for nothing what the office staff is paid to do.
POSSIBLE WAY FORWARD:
The closest that we seem to have come to a palatable approach was a proposal for a two-tier universal membership scheme broadly as follows:
(i) A modest membership subscription of (say) £4 for all players registered to compete in a league;
(ii) A higher membership subscription of (say) £18 for players who also play in congresses and the like.
This doesn't raise enough money, but it has been suggested that it could be combined with Game Fee as well, perhaps on a simple per-game basis with none of the current exemptions for members.
Of course, the total amount paid would end up being the same if the figures were set to produce the full funding requirement of £160,000. My impression is that there is a wish for the ECF to explore a concept like this, because the low "headline" membership figure would make the prospect of near-100% take-up realistic and the existence of Game Fee would (to be blunt) mask the fact of the underlying increase in overall contribution.
That said, the core objection to a big increase still stands, so the way forward would probably have to be to meet halfway, i.e. find some way to reduce costs - preferably by reducing what the office has to do rather than cutting "front-line" services, so that the increase was within a tolerance threshold.
I don't intend this new thread to be a repetition of all the detailed arguments voiced on the main ECF Funding thread. By now, I think we understand the points as much as we need to. I should like to invite comments on the above summary and, in particular, the attempt at a possible way forward described above. Without sinking too deep into detail, does this have the feel of a workable solution? If so, what would be the key messages you'd like me to take away in trying to work out the details?
I don't intend this to derail or replace the Council debate, of course. It's important that the democratic process be given due weight. What I am trying to do is face up to the realities suggested by the feedback to date (on the Forum and direct to me) and suggest a direction which Council could itself choose to point the Board towards if it preferred.
The main ECF Funding thread has grown to 528 posts and 36 pages. I'm genuinely grateful for the energy of the contributors. It does help to hear their views. However, it's become a problem to see the wood for the trees, even for those of us who've been trying to follow it from the start. This new topic is an attempt to take stock and perhaps to offer a jumping-on point for latecomers. For everyone else, I hope it will help provide a focus by homing in on the core issues.
It's important to remember that, useful as it is, the Forum tends to showcase a relatively small number of views. It's hard to know how representative of the wider chess-playing population it is, but it's probably a decent guide. I have the additional resource of e-mails received directly in my capacity as ECF Chief Executive, and I'll try to reflect those here as well.
This all started with a problem. The ECF lost its Government grant and, despite its best efforts, finds itself facing an annual funding shortfall of about £17,000, assuming that it continues to deliver all the things it does now. I published a paper outlining two ways in which the shortfall could be addressed.
(1) A UNIVERSAL MEMBERSHIP SCHEME which would cost every graded player £18 a year.
As far as I can judge, this is a fair summary of views:
(a) There is probably a majority in favour of a universal membership scheme in principle.
(b) In practice, the figure of £18 is simply too high. Even a proportion of existing Membership Organisations (MOs) are worried that take-up would fall and/or that leagues would choose to exit the ECF.
(c) Collection of membership fees is unclear. I envisaged an extension of the existing arrangements in MOs, which are loose but basically leave it to local organisations to sort out (in return for a 10% slice of what's raised). Some feel that this is too vague, too complicated (if players are involved in multiple leagues) or simply wrong, i.e. collection centrally by the ECF would be better.
(d) The proposal is unfair to relatively inactive players and would drive too many of them away from the game. The de minimis threashold for ungraded players/newcomers needs to be extended to graded, but relatively inactive players.
Based on this feedback, my conclusion would be that this option would be very dangerous. The likelihood seems to be that the take-up would be well below the assumed 85% and that this would then require a higher membership fee, which would drive take-up further down (or drive more organisations away entirely), requiring a higher fee, and so on.
(2) SIMPLIFIED VERSION OF GAME FEE + MEMBERSHIP OPTION, with a standard Game Fee of about 70p.
There has been a lot less feedback on this, but what there has been would suggest:
(a) The increase in Game Fee is high enough to risk driving away a certain number of leagues and organisations. This would in turn reduce the funds raised.
(b) For MOs, this option still requires a Basic membership fee of £18, which is too high (see above!)
My impression is that this would probably be tolerable for a higher proportion than option 1, BUT it would still see a number of "exits", which would initiate to some extent the kind of "doom loop" that I described under option 1.
In response to comments posted, I attempted to model what a "GAME FEE ONLY" solution would look like. Depending upon different approaches to what the ECF does, this would result in a standard Game Fee of between about 65p and 72p (with the usual reduced rates depending on event type).
This generated very little response on the whole, and I would interpret this as meaning that the increase in the headline Game Fee rate would be as unpalatable for some as under Option 2, so the chances of significant numbers of organisations walking away would be high. I didn't sense any momentum for a push to reinstate this as an option for Council to consider.
Based on the above reactions - i.e. no matter how you present it, the simple fact is that these options will be too expensive for some and will reduce the size of the contributing pool, thereby reducing the amount raised, leading to further attempts to increase the rates to catch up again - my conclusion is that the focus needs to shift to the COST side of the equation.
I presented an explanation of how the ECF currently spends the money it raises and invited people to suggest how it could be cut. Responses have been remarkably muted, which makes me think that this prospect doesn't attract many people either. The one exception is the view held by some that too much money is spent on administration (i.e. the ECF office). I have argued that there is an underestimation of the importance of the office in underpinning the work of the 50-odd volunteers who deliver the ECF's work as a whole, but I haven't persuaded everyone. I've also registered my uneasiness with the implied requirement that a "solution" be found to all of this that essentially involves finding people who are willing to do for nothing what the office staff is paid to do.
POSSIBLE WAY FORWARD:
The closest that we seem to have come to a palatable approach was a proposal for a two-tier universal membership scheme broadly as follows:
(i) A modest membership subscription of (say) £4 for all players registered to compete in a league;
(ii) A higher membership subscription of (say) £18 for players who also play in congresses and the like.
This doesn't raise enough money, but it has been suggested that it could be combined with Game Fee as well, perhaps on a simple per-game basis with none of the current exemptions for members.
Of course, the total amount paid would end up being the same if the figures were set to produce the full funding requirement of £160,000. My impression is that there is a wish for the ECF to explore a concept like this, because the low "headline" membership figure would make the prospect of near-100% take-up realistic and the existence of Game Fee would (to be blunt) mask the fact of the underlying increase in overall contribution.
That said, the core objection to a big increase still stands, so the way forward would probably have to be to meet halfway, i.e. find some way to reduce costs - preferably by reducing what the office has to do rather than cutting "front-line" services, so that the increase was within a tolerance threshold.
I don't intend this new thread to be a repetition of all the detailed arguments voiced on the main ECF Funding thread. By now, I think we understand the points as much as we need to. I should like to invite comments on the above summary and, in particular, the attempt at a possible way forward described above. Without sinking too deep into detail, does this have the feel of a workable solution? If so, what would be the key messages you'd like me to take away in trying to work out the details?
I don't intend this to derail or replace the Council debate, of course. It's important that the democratic process be given due weight. What I am trying to do is face up to the realities suggested by the feedback to date (on the Forum and direct to me) and suggest a direction which Council could itself choose to point the Board towards if it preferred.