Are AMC-Managed Organizations Recession Resistent?

Michael LoBue writes: I just completed writing a report on a research project examining how the current economic climate affected AMC-managed and standalone organizations. Based on analyzing two comparable groups of membership-based associations, AMC-managed organizations appeared to be avoid the harsh aspects of the economy, whereas standalone organizations were hit very hard.

Standalone organizations employ their own personnel, shoulder the full costs of occupancy (own or rent office space) and spend their scarce revenue on capital goods.

The study examined whether organizations ended their fiscal years in surpluses or deficits. The fiscal years examined were 2006, 2007 and 2008 — fiscal year ending December 31.

The results were quite compelling — standalone organizations were nearly twice as likely as AMC-managed organizations to have ended 2008 with deficits. The chart below displays the three-year comparison of the two groups of organizations based on these two management models:

For an overview of the article and a link to the full report
click here….

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