How Unions Raise Money

This chapter examines how unions raise money from their members. National unions typically derive pertinent revenue from members in two ways: directly from dues paid by members or indirectly from dues paid to locals who pay the national a per capita tax. National unions may also charge other fees, such as initiation fees, to generate revenue. We first review data on the dues rates unions charged to members in 2019 compared to 2006, noting that most had raised their dues. Though dues rates vary widely, they tend to be relatively modest. Thirty-nine of the national unions raise money from either direct dues payments or per capita taxes. On average, unions raised between 32.97 percent of their overall member-based income (MBI) from dues in 2018–2019 compared to 61.65 from per capita taxes. Twelve unions raised between 90 and 100 percent of their net receipts from MBI, and the average percentage rose from 60 to 70.2 percent comparing 2018–2019 to 2006–2007. Reflecting the wide variability in dues rates, unions ranged in per-member MBI from $53.12 in the last two-year interval to over $3427. Five unions raised more than $1,000 in MBI per member.