A Turning Point for Association Finances

Most associations are running a 2015 financial model in a 2026 world. The uncomfortable truth is many leaders know it and just haven't had the forcing function to do something about it. That forcing function is now here.

The pressures aren't new (economic uncertainty, shifting member expectations, more selective sponsors and tighter budgets). What is new is the way they are stacking and forcing associations to rethink how they make money. Dues and a flagship annual conference used to be the twin engines of stability. For a growing number of organizations, that foundation is cracking as member loyalties shift and sponsors demand more for even the smallest investment.

MCI’s recent analysis of nearly 50 associations showed that 77 percent of operational funding now comes from non-dues revenue. That number has been rising for years; the difference now is the strain around it. Sponsor expectations are unrealistically higher; they want a low-paid consultative strategic partner - not an order taker. Revenue streams that looked "fine" in stable economic times are proving brittle under the unstable pressure of today's worldwide challenges. The organizations that are winning are the ones willing to rebuild the model, not just patch it.

Please select this link to read the complete article from Boardroom.