BMW MOA to stop selling Lifetime Memberships

March 3, 2007

The BMW MOA Board of Directors has announced that sales of Lifetime memberships will discontinue on May 1, 2008. This decision was reached after consideration of several concerns about this program, primarily the inability to accurately forecast the long term financial liability these memberships represent to the organization.

Lifetime memberships are a promise to provide services and benefits for an indefinite period for a fixed one-time payment. To accurately price such memberships would require the BMW MOA to collect all members' birth date information, contrary to its tradition of minimal data gathering, and was considered burdensome in light of the low 3% participation in this program. New directions in Generally Accepted Accounting Principles urge organizations to implement fair value accounting methods throughout their operations. The likelihood that income from the regular memberships would continue to effectively subsidize Lifetime members has become a major concern as the Board continues to further increase member benefits. This issue, combined with uncertainly over long term increases in the cost of these services led the Board to make this decision.

This program was implemented some years ago at a time when the BMW MOA needed a short term financial boost. The Board recognizes and appreciates the support of all those who have purchased Lifetime memberships. Current Lifetime memberships will not be affected in any way.