AMCs Manage Client Bottom Lines Through Recession

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.