Whether your association is in its infancy, well established, or in a period of transition, it is important to determine the right association management model for your current needs. In this article we provide an overview of a few benefits and challenges to the two primary management models.
Standalone associations are exactly what they sound like, associations that manage themselves through the work of either member volunteers or employed staff. Standalone associations managed by volunteers typically benefit from a strong commitment to the organization’s mission and values, but often struggle with the time limitations and turnover of volunteers. Whereas standalone associations that hire staff to manage day-to-day operations enjoy a greater level of consistency and expertise, but are burdened with higher overhead costs and limited staff resources.
An alternative to the standalone management model is to work with an association management company (AMC) like Management HQ. AMC-managed associations benefit from the expertise of professionals that specialize in a number of disciplines, flexibility in staffing, and typically efficiencies and cost savings. However, the board must do its due diligence in selecting the right AMC partner that will ensure its needs are met, and that its executive director is aligned with the association’s mission and values.
Similarly, AMC-supported associations are able to obtain targeted management support where and when it is needed, but because the costs may be so transparent and well managed, should items arise outside of the scope, the association will have to make difficult decisions about where to allocate its resources. This type of decision may be deferred in a standalone association, and could result in long-term financial or staff retention problems.
The AMC model offers some appealing benefits for associations looking to improve management continuity, increase member satisfaction and grow financially.
AMCs such as MHQ provide the infrastructure and support to keep the cycle of service moving, empowering association boards to focus on setting strategic goals that better serve their members.
The AMC model also enables associations to share resources – from personnel to technology to office space – thereby reducing overhead expenses. Fewer expenses mean associations have more money to devote to furthering their missions.
According to a study released by the AMC Institute, since 2008, the net assets of associations choosing an AMC full-service management solution grew by more than 300% compared to only 23% growth for standalone associations.[1] Findings from an additional study showed that net revenues for AMC managed associations increased by 31%[2] vs. 2.6% for standalone associations.[3]
And finally, the AMC management model is scalable. Depending on what stage of the lifecycle they are in, associations can choose to increase or decrease the level of engagement with an AMC to accommodate different needs over time.
Want to learn more? Consider submitting a 3-Minute Association Management RFP and discover how Management HQ can help your organization thrive.
[1] Brigham Young University, Association Management Model Study, 2016
[2] Brigham Young University, Association Financial Impact Study, 2015
[3] AMCI 2016 Industry Impact Study
