Changes in Leadership

Friendship Force International

November 15, 2002

Dear Friends:

As a club leader and active participant in Friendship Force International, you know the intangible value of the FFI experience - it cannot be found from private tours or travel booking companies. However, there are very real and tangible costs associated with the services we provide in organizing exchanges around the globe as well as ever‑changing market realities we cannot deny.

In light of the past year's events, the FFI mission of furthering peace through global citizen exchanges could not be more relevant than it is today. Still, if we are to maintain our relevance and vitality operationally, we must remain competitive with the vast spectrum of travel options open to consumers today. The challenge is not simply keeping prices low - but maintaining a reasonable fee structure that allows us to uphold the quality of programs, services, and amenities we provide our members and exchange participants. To ensure our health and longevity as an organization well into the 21st century, we need a revenue base that gives us room for growth. Room to plan for and anticipate future program needs - and to address future changes in membership and market demand.

Thanks to the generosity and good will of our exchange Hosts, and the dedicated efforts of club leaders like you, who assume much of the tactical responsibility for organizing exchanges, FFI fees have remained constant for nearly a decade. Increasingly, though, FFI hosts in many countries tell us the current fees provided them are not enough to cover the basic costs of arranging special events and needed services for visiting Ambassadors. And members have voiced real concerns about the substantially different exchange fees now paid by FFI Ambassadors from different countries.

That's why, after careful analysis, the Board of Trustees and executive leadership of FFI are making changes to the fees that govern both FFI membership and exchange‑related programs and services. These changes, we believe, reflect the real cost of maintaining and sustaining a global citizen‑exchange organization. They also create a more equitable and uniform fee structure across the full spectrum of participating countries and clubs.

As a club leader, we encourage you to understand and familiarize yourself with all the details of this important policy overview - not only so you can communicate these changes to your fellow club members in a forthright manner, but also so you can fully articulate the expanding benefits FFI membership at the international level.

For our part, we understand how a new fee policy can result in countless questions. And so we'd like to call your attention to the most profound changes in policy by responding to the most anticipated questions.

What fee changes can I expect to see? Will exchange fees be increasing across the board? What about membership fees?

Some countries will see their FFI administrative fees for exchanges drop, while other countries and participating Ambassadors will see their FFI fees rise. Countries have been placed into categories that reflect their relative differences in economic strength and the purchasing power of their citizen-Ambassadors. Fees will also vary in the future depending on the type of exchange Ambassadors will pay higher fees for international exchanges than for regional ones. And for the first time, Ambassadors on exchanges within their own country or within the European Union will pay a small fee to FFI for accessing the Friendship Force network.

Host fees paid by all Ambassadors on international and regional exchanges will increase to help defray the rising costs associated with organizing exchange events within the host country. And Host fees will be uniform regardless of the countries involved.

Membership fees in the international organization (formerly known as club fees) are increasing; but even though FFI membership will cost a little more, it will offer tangible benefits and savings to those individuals ($10) and couples and families ($15) who loin. Those who register with FFI as members will enjoy discounts on international exchanges, conferences, festivals, and other special FFI events. We ask clubs to collect FFI memberships when you collect your local dues. Such support will strengthen the Friendship Force in your own community, your region and country, and around the world.

What are the benefits of becoming an FFI member?

FFI membership is a great value and a great way to keep informed about FFI opportunities. Members receive:

· E-mail and Web site updates about upcoming excahngies and programs

· Discounts on FFI exchange fees and all international conference and festival registration fees

· Special invitations to speakers' series and other unique events

· Youth and student members qualify for even deeper discounts on exchanges

What about the Friendship magazine?

We're also proud to announce that Friendship magazine will be taking on a new life as a full color, quarterly publication with deeper, richer content and a new look. The magazine will be available for a yearly subscription fee of $15. And you can sign up for a subscription when you join FFI!

Will U.S. clubs still be required to book their exchange travel services through FFI?

No. The mandate requiring U.S. Friendship Force Clubs to use FFI Travel Services has been lifted for any club‑based exchanges beginning in 2003, unless services for those exchanges have already been booked by FFI. While their use is no longer required, FFI Travel Services remains an excellent and highly competitive value. Friendship Force clubs worldwide should consider FFI Travel Services for their exchange land‑packages and U.S. Clubs should consider FFI Travel Services for their airfare arrangements as well.

This special issue of the Leadership Forum and the pages that follow communicate these vital changes and other adjustments in FFI policy in greater detail.

Please review these materials carefully. If you find you have questions still unanswered, please contact the FFI Program Services Coordinator serving your local Club for assistance.

We are excited about what the future holds for our organization. And we believe these changes help ensure FFI remains healthy and robust for another 25 years.

We know we can depend on each of you, our club leaders, to be faithful stewards of the new pricing policies. And we hope you will encourage your members to take advantage of membership at the international level; it will bring value both to those who enroll and to the entire organization.

For your continued support and careful attention to these matters, we thank you. Without you, there would be no Friendship Force committed to a world at peace through cultural understanding and global friendship.

Sincerely,

Tony Coates

Chairman

Board of Trustees

Constance Swank

Executive Director

FFI Changes