According to ASAE's Operating Ratio Report, revenue from membership dues has been declining for years as a percentage of overall revenue, leading many associations to rely more heavily on nondues revenue to meet their bottom line. This fact is especially true for association chapters, which might not enjoy the full benefits of dues revenue.

"Many times, chapters are on their own to generate revenue," says Ryan Felps, president of AMS provider StarChapter. And often, there's a perception that chapters shouldn't be making money, he says, when in reality, chapters have to make a profit to fund programs, meetings, networking, and other events that members expect.

Here are four things association chapters should try to avoid if they want to boost nondues revenue:

1. Don't host free events. Although this might seem like a no-brainer, association chapters should always charge a fee for admission to everything from networking events to learning programs. It's all about "perceived value," Felps says. People are busy, and if chapters don't charge for events, members might think that attending isn't worth their time or energy, he says. Plus, free events don't cover hard costs and put chapters at an operating loss.

Often, there's a perception that chapters shouldn't be making money, when in reality, chapters have to make a profit to fund programs, meetings, networking, and other events.

2. Don't charge the same price for members and nonmembers. If you charge all attendees the same price for an event, what's the benefit of joining the chapter? Felps recommends that chapters offer different prices for members and nonmembers. For example, admission to a meeting might cost $15 for members and $45 for nonmembers. This helps underscore the value of belonging to the chapter, and it gives the association the potential to make a little bit more money on an event.

3. Don't discount raffle tickets. Felps calls raffles a "tried and true" nondues revenue generator. What's great about raffles is that they don't cost chapters a dime, and they have the potential to bring in a good sum of money. They're also fun, especially if the raffle prizes interest meeting attendees. To successfully organize a raffle, chapters can ask members to talk to their employers about donating prizes, or chapters can approach local businesses about donations. Then at the event, the chapter can charge a small fee for entering the raffle.

4. Don't forget about sponsorships. The best way to get revenue flowing to chapters is through sponsorships, Felps says. Whether it's the chapter's annual meeting or golf tournament, securing a corporate sponsor can give the chapter some "real money to work with," Felps says. Chapters should also work to develop a healthy and recurring sponsorship program—for example, six to eight sponsors that renew on an annual basis.

Chapters that charge for events, offer raffle tickets, and nurture sponsorship programs should be well positioned to bringing in much-needed nondues revenue for the benefit of their members.