AMCs Impact on Association Financial Performance

Association Management Models and Their Impact on Financial Performance

Prepared by James Gaskin, Ph.D.
Brigham Young University

Commissioned by AMC Institute (AMCI)

Final Report: July 2015

Executive Summary

The table below summarizes the relative financial performance of associations managed by an association management company (AMC) vs those independently managed. Green reflects a higher value for associations managed by AMCs, while red reflects a lower value. Data was culled from IRS form 990s of 501c3 and 501c6 organizations. A random sample was drawn of 167 associations. The low budget category was between $0.5 and 2 Million. The high budget category was between $2 and 7.5 Million.

 
KEY FINDINGS

• In general, using AMCs is associated with stronger financial performance.
• Regardless of tax status and budget size, growth in Net Income, Net Revenue, and Net Assets are stronger for associations using AMCs.
• The only organizational context in which using AMCs did not lead to higher performance was with regards to average percent surplus for 501(c)6 organizations.