Stop Getting Lost in the Numbers

After the COVID-19 pandemic—once stimulus funding had tapered off— when presenting audit results to the governance body of a professional membership association, the conversation shifted to a key question: Did the organization have sufficient reserves? Committee members cited different figures for some time, but there wasn't a shared framework for what "enough" looked like.

We suggested conducting a benchmark analysis using similarly situated professional membership associations of comparable size and structure.

When we reviewed the results at a subsequent meeting, the discussion shifted from debating numbers to asking productive questions about sustainability and future budgeting. That clarity ultimately helped leadership develop a constructive plan to build operating reserves to a defined target over a multi-year horizon.

Please select this link to read the complete article from ASAE's Center for Association Leadership.