Research

AMC-managed Associations Continue to Show Resilience During Recession

OVERVIEW: After updating last year's study with 2009 data the AMC-model continued to provide better protection than the standalone-model against the impacts of the second year of the recession. In this updated report, revenue and expense trends were also analyzed for both association groups over the four-year period revealing that the AMC-model was better able to align expenses and revenues than the standalone model.
 

 

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IMPLICATION: Standalone organizations up to $5M in annual operating revenue should answer one question: "Are we receiving a return on investment in our management model, given that on average we may be spending 50% more for that management approach than if we were managed by an AMC -- especially given the performance benefits produced by AMCs?"

MAJOR FINDINGS:

  • The percentage of AMC-managed organization in 2009 reporting operating surpluses dropped from 2008, however, the majority of organizations managed by AMCs (58%) were still operating with a surplus;
  • The percentage of standalone organization in 2009 reporting operating surplus remained about the same as in 2008, however, a minority (48%) of organizations using the standalone model were operating with a surplus;
  • The AMC model did a very effective job of aligning expenses to revenues over the three-year period (2006 to 2007, 2007 to 2008 and 2008 to 2009).

CONCLUSIONS:

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 stationary structure of the standalone model. This study reveals that the results reported last year are enduring with a slightly deeper understanding of how those favorable results are delivered each year. The AMC management model demonstrated 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)