How Membership Dues are Spent at the National Association of Realtors (2024)

The National Association of Realtors (NAR) is the largest professional trade association in the US. A non-profit tax-exempt 501 (c) (6) based in Chicago, Illinois, NAR represents 1.5 million members (although this number could greatly decline with the most recent judicial proceedings that eliminate rules on commissions, as agents leave the industry when faced with lower commissions) who belong to one or more of the 1,300 associations/boards and 54 state or territory associations.  Members can be residential or commercial brokers, sales people, property managers, real estate appraisers, counselors and others who work in the real estate industry.

NAR functions as a self regulatory agency, a lobbying organization, and as a provider of accreditation and certification of designations.

Key information to know about NAR include:

• NAR is based in Chicago with about 365 employees.
• NAR has more than 1,000 voting members of its governing body.
• NAR has historically. generated about $300-$350 million annually, primarily through membership dues (which average about $200 a year for the 1.5 million members), all of which means NAR benefits greatly from a large base of members and increased membership.  This could change in the future with the most recent court proceedings, driving agents out of the industry if commissions decline (which many people predict will happen; however, this does not appear to have happened yet);
• NAR has historically spent less than they raise, allowing the organization to accumulate nearly $800 million in net assets by year-end 2022.  However, the $443 million settlement to end the litigation on commission fees means that by year-end 2023, NAR had net assets of $363 million.  By year-end 2024, NAR reported total net assets of $387 million.

So, how are membership dues spent?  In 2024, the short answer is that about 31% of revenue is spent on compensation and office-related expenses.  52% is spent on fees for outside services (primarily a media company), advertising and promotion, public policy, and travel and conferences. 14% is spent on grants and other expenses while 3% is added to the general fund (which is where litigation settlement fees were paid from).

In 2024, NAR reported total revenue of $361 million (compared to $358 million in 2023, $328 million in 2022, $327 million in 2021, $301 million in 2020, and $338 million  in 2019), of which $303 million (84% of revenue) came from membership dues.

Expenses totaled $350 million (not including $10 million in depreciation) – 97% of revenue – and can be categorized as follows:

• $86 million (24% of revenue):  Public Policy/Advertising/Promotion
• $77 million (21% of revenue):  Compensation
• $71 million (20% of revenue). Fees for Services
• $36 million (10% of revenue):  Office-Related Expenses
• $29 million (8% of revenue):  Travel and Conferences
• $24 million (7% of revenue):  Grants
• $27 million (7% of revenue): Other Expenses (primarily “other” with no detail provided)

As illustrated above, the two largest expenses are Public Policy/Advertising/Promotion and compensation.  365 employees received $77 million in compensation (an average of $211,000) with the most highly compensated employee reported to be Nykia Wright, the CEO who received $2.6 million in compensation in 2024.  It is also important to note NAR paid for first class or charter travel, companion travel, health or social club dues or initiation fees, personal services, and provided gross up payments and tax indemnification.

Fees for services were primarily to a company called Havas Media Group who received $43 million in compensation for marketing and communications.

Using the above information, every $100 in revenue was spent as follows:

$100:  Revenue

-$ 21:  Compensation

-$ 20:  Fees for Services

-$ 10:  Office-Related Expenses

– $ 24:  Public Policy/Advertising/Promotion

-$   8:  Travel and Conferences

-$  7:  Grants

-$  7:  Other Expenses

-$ 97: Total Expenses

 $  3:  Excess Revenue:  To General Fund

NAR spent $97 out of every $100 on organization expenses.  $31 out of every $100 was spent on compensation for the 365 employees and office related expenses; $52 out of every $100 was spent on fees for outside services (primarily the Havas Media Group), advertising and marketing, public policy, and travel and conferences, while $14 out of every $100 was spent on grants and other expenses.  $3 out of every $100 was added to the general fund.

To read the IRS Form 990 (2024), click here.