AMCs Manage Client Bottom Lines Through Recession

surplus-graph-2010.gif
(Full Report Available)

OVERVIEW: After adding 990 tax return data for 2010 to the original study, we learned that organizations managed by AMCs essentially left the Great Recession behind in 2009, returning to pre-recession operating levels of performance in 2010. Conversely, standalone organizations were still struggling to recover from the recession. We also learned more about the whys of these trends. Basically, the AMC-model was more adept at adjusting expenses to match revenue.

IMPLICATION: The AMC management model demonstrated flexibility and suppleness in the alignment of expenses and revenues during the Great Recession that simply could not be matched by organizations that employ their own staff and operational resources.

CONCLUSION: It should come as no surprise that the AMC model of association management provides organizations more options when it comes to allocating available resources to program needs than the more static structure of the standalone model. This study reveals that the results reported last year endure, and provides us with a deeper understanding of how those favorable results are delivered each year. The AMC management model demonstrates more skill at managing the bottom line.

By the Numbers

$1 Billion

The total operating budgets for those associations managed by AMC Institute member firms.*

*AMC Institute

By the Numbers

2.8 million people

The number of members in associations under management by AMCs.*

*AMC Institute

By the Numbers

3,500

The total number of individuals employed by AMCs that are member firms of the AMC Institute.*

*AMC Institute

By the Numbers

10 years

The length of time L&M has been a Charter Accredited AMC – making it the only remaining Charter Accredited firm west of the Rockies.*

*AMC Institute

By the Numbers

19 out of 20

The number of industry segments that AMC-managed organizations have in common with organizations managed by employed staff.*

*Client Operating and Financial Benchmarking Survey Report 2011; © 2011 AMC Institute, pg. 21

By the Numbers

1,700

The number of associations managed by AMCs that are member firms of the AMC Institute.*

*AMC Institute

By the Numbers

32%

On average, the premium standalone organizations pay to directly employ staff and shoulder the full costs of occupancy and capital expenses vs. the AMC alternative.*

*Client Operating and Financial Benchmarking Survey Report 2011; © 2011 AMC Institute, pg. 23

By the Numbers

32%

The rate over which the AMC-managed model outperformed the standalone model during the Great Recession (2008 – 2010) in terms of operating surpluses.*

*AMCs Managed Client Bottom Lines Through Recession; © 2012 L&M, page 2 (derived from data reported)