So why is it that DVC members can't use free dining. I understand you have to stay in a Disney hotel, so why don;t we qualify>?
Free dining is a marketing program designed to fill rooms at full price during slower times at WDW. You pay full price but you get free food. Other marketing programs that Disney offers when they need to fill rooms include AP room discounts, the "Buy 4 stay 7" offer, PIN codes, etc.
DVC members do not need to be enticed to book a stay since we either use our points or we lose them. Giving DVC members free dining just because it is being offered to cash guests would be a giveaway with Disney getting nothing in return. The Mouse doesn't work that way.
Besides, DVC already offers discounts during slower times of the year. For example, you can save about 20% by going in Adventure Season (Jan, Sep or early Dec) instead of Dream Season (early Feb, anytime in May, early June or late Aug).
BillDVC members do not need to be enticed to book a stay since we either use our points or we lose them. Giving DVC members free dining just because it is being offered to cash guests would be a giveaway with Disney getting nothing in return. The Mouse doesn't work that way.

Some people see discounts as a gift, and feel that members are being slighted because we don't get free dining. That's not the way it works, at Disney, or at any business. A discount is given in hopes that you'll spend money you weren't planning to spend, or spend more money than you were planning to spend.
Billanytime i have a question about "why" disney does/doesn't do something, the answer is usually found in assessing how it maxmizes disney profit and/or minimizes disney risk.![]()
(DVC Ownership + TIW dining discount of 20%) = MUCH better deal than (Full Rack Rate room + "Free" Dining). People on "free" dining would be wishing for DVC if they only knew.
If you want "free" dining that badly do what other members I've spoken with have & book yourself a room at one of the value resorts paying the full rack rate and purchasing a park ticket as required by the offer. Then go ahead & book yourself whatever DVC accomodations you choose for the same time period. According to them they check into the Value Resort to activate their free dining but they never set foot in the room they've booked. They then check themselves in to their DVC resort of choice and use the "free" dining plan they got by booking & paying for the value resort room they aren't using. This is a true story. I was shocked when I had a member tell me they actually did this because it was worth it & they believed they were saving money. But in those days a Value resort got you the regular dining plan when they still included the appetizer & gratuities. So if you were a party of 4 it really was cheaper than just buying the dining plan for your DVC stay. And originally you only needed to purchase a 1 day ticket. Personally If I'm paying for a room I'm darn well sleeping in it and saving my points for another trip.