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?”

Updated study validates value proposition of AMC model

The release of the third study report in as many years comparing the performance of associations managed under the two dominant management models (e.g., standalone and AMC-managed), caused me to reflect on what I was originally looking for when I undertook comparing the operating ratios of associations based on these two models.

My initial goal was to find a credible set of data that would debunk the many myths about AMCs and AMC-managed organizations.