Focus on Finances

The earliest Grand Lodge dues on record were $2 a year and remained that until they were raised to $4 in 1955. They were raised to $8 in 1987 and to $12 in 1991.

Even though membership had already dipped below 170,000 a decade ago, income from dues still was more than $2,000,000 in 1992. Now, after 10 more years of steady decline in membership, the income from the existing $12 dues just this year (2003), suffers from nearly a half-million dollar decline.

However, during that same decade of the '90s, the economy was such that the income from Grand Lodge investments continued to be substantial. But, September 11, 2001, changed everything drastically. Not only did the impact of that deplete the income from returns on the Consolidated Fund investments, but it also made it necessary to tap the principals of those investments. Having used much of the principals, the investments will not be in place to provide income in the future.

Many Brethren think that the Grand Lodge has access to all the money in the Consolidated Fund and can use it for fraternal operations. That's not the case. Most of it is designated for the Grand Lodge Masonic Charities, primarily the Masonic Homes. A large portion of it is restricted; some of it is not restricted. The Grand Lodge, whose fraternal operations are 50l(c)(10), owns and operates the Masonic Homes of the Grand Lodge of Pennsylvania, whose charitable operations are 501(c)(3). Grand Lodge can transfer funds to the Masonic Homes. However, Masonic Homes cannot transfer funds to the Grand Lodge for fraternal operations.

The Masonic Library and Museum of Pennsylvania, which also is a 501(c)(3), established the John Wanamaker Research Center to include the Library and Museum, the Gold Book Society, and the Philanthropic Society, and accepted the responsibilities of Masonic Education and the operations of the historic Masonic Temple owned by the Trustees of Title to the Masonic Temple and Other Real Estate of Grand Lodge. Accordingly, contributions to the Gold Book Society and the Philanthropic Society properly go toward the operations and maintenance of the Masonic Temple; none of those contributions go to Grand Lodge for fraternal operations.

Over the past few years, there have been major expenditures for fraternal operations by Grand Lodge for the benefit of the Lodges and the Brethren. In every case, they were for bona fide programs approved in the budget by the Grand Lodge Committee on Finance. They were desired in the best interest of the Fraternity and acceptable in the economy of the time. Consider two examples:

In recent years, several million dollars have been spent on the essential computer system that is now serving and benefiting the Lodges and the membership. (Please see the "Expenses" pie chart.) Today, all but 10 Lodges are on-line. All of the investment for the technology and installation of the system was borne by the Grand Lodge fraternal operations. The only costs to the Subordinate Lodges were for each to purchase a computer and to acquire an Internet service provider. (Grand Lodge made computers available at cost, or Lodges could purchase their own.)

The Matching Grants Program was discontinued on January 1, 2002. It was a popular program that was widely used by the Lodges. However, while the generosity generated plenty of community good will, it proved to be a financial double-edged sword. Not only were the contributed Lodge funds and Grand Lodge moneys going outside the Fraternity, but also much of the Subordinate Lodge contributions were funds that Lodges otherwise would have given to Grand Lodge Charities. The Matching Grants program was well received, but that was all before 9/11 and the resulting downturn in the value and return on investments.

The Grand Lodge of Pennsylvania is not bankrupt ­ far from it. There is a cash bind, so Grand Lodge has to generate funds. The only way to do that is to increase the dues to support the fraternal operations. Unfortunately, when the stock market comes back, as it has been doing so far this year, Grand Lodge won't be in a position to share fully in the return because it was necessary to use much of the principal of the investments to keep functioning. That emphasizes the need and the urgency for the increase in dues.

What has come before is history ­ and for Freemasonry in Pennsylvania, it is a proud history of service to mankind and the Fraternity. Now, the Fraternity has to focus on the facts and move forward in the climate and realities of today.

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