Association Management Company Industry Booming in Weak Economy
ATLANTA, May 10 /PRNewswire/ — Threatened by economic uncertainty, many associations in the United States are being forced to re-evaluate their financial stability, efficiency, and future outlooks. Faced with financial pressures and staffing challenges, associations are increasingly hiring professional Association Management Companies (AMCs); businesses that provide professional management to non-profit organizations. The AMC Institute noted that half the AMCs surveyed witnessed an increase in Requests for Proposals (RFPs) in the six months prior to its industry research.
One member of the AMC Institute, said “We are seeing more elected leaders with limited time to run their associations turning to AMCs for financial management, special events and conferences, and membership development. In today’s economy, the concept of shared resources among nonprofits especially rings true.”
In its 2009 survey, the AMC Institute found that one third of AMCs added staff. Of this group, 50 percent added to staff new clients.
When associations across an AMC’s client base share resources, they enjoy the best of both worlds – a wide range of expertise and rapid scalability as the environment dictates – characteristics not often present for non-AMC managed associations. “AMCs run their association clients like businesses, focusing on the bottom line, while providing them with tremendous flexibility and adaptability – crucial in today’s marketplace,” said Richard Cristol, President-elect of the AMC Institute.
About Associations and AMCs
Numbering 147,000, U.S. associations and nonprofits contribute approximately 10 percent to the Gross Domestic Product. And nine out of 10 adult Americans now belong to at least one association. While a 100-year-old industry, Association Management Companies have grown in number by 150 percent in the past 20 years. AMCs now manage budgets approaching $3.5 billion collectively.