Why work with an Association Management Company?

The following was published by the American Society of Association Executives. We encourage you to visit the ASAE web site where you'll find a variety of useful information regarding AMCs. To make your search easier, check out our resources page.

What is an association management company?

An AMC is an organization staffed with skilled professionals who provide expert, cost-effective management and administrative support to volunteer-based membership organizations.


Who uses association management companies?

The tremendous advantages of using an AMC are enjoyed by forward-thinking business, trade, service, and professional associations, academies, and societies of all membership and budget sizes throughout the United States and the world.

Why is an association management company preferable to other methods of administrative support?

No matter what the nature of a volunteer-based membership organization, only three ways exist to get things done.

1. Delegate all functions to volunteers. While this approach may reduce out-of-pocket costs, it isn't necessarily cost-effective. The organization that chooses this route sacrifices continuity; risks unintentional errors and omissions in corporate procedures and responsibilities; subjects its timetables and deadlines to the schedule of volunteers who are preoccupied with their personal responsibilities; misses out on valuable professional experience, guidance, and input; and takes precious time away from volunteers, limiting them from doing what they do best--namely, running their own businesses.

2. Hire a full-time staff. The benefits of a full-time staff are obvious: They are there when you need them; they're well-informed and dedicated to your organizational goals and objectives; they provide organizational continuity; they are trained in the unique corporate responsibilities of nonprofit organizations; and they provide professional guidance and knowledge.

Trade-offs for this approach include major capital investments in office space, furniture, and equipment; the high cost of multiple professional salaries and employee benefits; and the full-time cost of maintaining a headquarters office year-round, including slow workload periods when the entire staff is still being paid to be there for you 40 hours a week.

3. Contract with an association management company. Forward-thinking organizations have embraced the AMC concept for more than 100 years, principally because the AMC offers all the benefits of the first two options, plus additional benefits and none of the drawbacks--and usually at a lower cost. Ask leaders of any organization that has used an AMC and they will tell you this is the most cost-effective, efficient way to get the job done.

Specific benefits of using an AMC include

  • A level of complete accountability not always available at the volunteer level.
     

  • More access than other alternatives to the broadest level of professional staff talent, organizational management techniques, and technology.
     

  • A larger pool of trained specialists to provide full support in areas such as nonprofit corporate and tax law, marketing, public and media relations, meeting planning, communication, and lobbying.
     

  • Full-time staff support while enjoying cost savings inherent in a shared-resources relationship.
     

  • Continuity and stability in business operations during leadership changes.
     

  • Staff flexibility during heavy and light workload periods.
     

  • Freedom from the administrative responsibilities of being an employer.
     

  • A consistent physical headquarters office, phone number, and address.
     

  • Cost savings resulting from stronger buying and negotiating power for the purchase of meeting space, supplies, printing, and other services regularly used by your organization.
     

  • Availability of the latest hardware, software, communication systems, and other technology resulting from combined resources.
     

  • Opportunity to foster innovation by access to an unlimited spectrum of ideas, perspectives, projects of other client organizations.
     

  • The highest level of staff commitment, since the AMC's success is dependent on the client organization's success.

In addition to these specific economic benefits related to the use of an AMC, the most valuable benefit of all is that delegating the organization's day-to-day business matters to an AMC frees the organization's leaders to focus totally on the organization's mission rather than dealing with administrative tasks.

Association management companies have a proven track record as the smart choice for leading-edge organizations--those of today and those of tomorrow. AMCs offer service, performance, and results.

 

© 2009 The Management Alliance, Inc.

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rsohn@managementalliance.com