AMC-managed Nonprofits Outpace Sector Growth
Tuesday, August 16, 2016
New Research Finds Growth of Associations Managed by AMCs
Outpaces Overall Growth in the Sector
Study shows more c6 and c3 organizations choosing association management company model
SALT LAKE CITY – The number of associations turning to association management companies is increasing each year, according to a new independent research study. Between 2008 and 2014, the number of trade associations and professional societies selecting an association management company (AMC) to provide full service management increased by 300 percent.
The research was conducted by Dr. James Gaskin of Brigham Young University. In 2015, Dr. Gaskin completed a related study, which found that, on average, AMC-managed associations experience more than three times the growth in net assets and 31 percent more growth in net revenue regardless of size and tax status.
“The findings corroborate what our members have been reporting” said AMC Institute Chair- Greg Schultz. “Associations are examining the return on their investment in staff and overhead and finding that AMCs can offer a better return. That means more value delivered to members, so they are making the move. This showcases the valuable role AMCs play in developing and sustaining the association sector.”
Both studies focused on 501c3 and 501c6 studies with budgets of $500,000 to $7.5 million. Nonprofits used in the study were identified as associations using the IRS-assigned organization code, and did not include foundations.
“The data showed a notable and consistent increase over a six-year time frame in the number of associations using an AMC,” Dr. Gaskin said. “The number of standalone organizations also demonstrated growth but at a much slower rate that those that were AMC-managed.”
Additional findings indicated that among associations partnering with AMCs:
- The highest and most consistent growth in AMC partnerships was seen in organizations with budgets between $500,000 and $5 million.
- 501c6 nonprofits showed the greatest increase in AMC use at 363%
- An 85% growth over the same time frame was also seen for c3 organizations
- Both categories far exceeded the non-AMC managed growth rate which averaged 22%
An executive summary of the research is available on the AMC Institute website at http://www.amcinstitute.org/?page=GaskinResearch2016.
About the AMC Institute
The AMC Institute represents over 180 association management companies that manage over 1,800 associations full-time and nearly 900 on a project basis. The total budget for associations managed by AMC Institute members is more than $1.5 billion. AMC Institute seeks to advance professionalism and high industry standards for association management companies through education, accreditation and member networking opportunities. http://www.amcinstitute.org/
About James Gaskin, Ph.D.
James Gaskin is a professor of information systems in the Marriott School of Management at Brigham Young University. Dr. Gaskin teaches advanced multivariate statistics for academic research and is the founder of StatWiki, an extensive online database of advanced statistical tools and tools and tutorials and Gaskination, a YouTube channel with over 130 statistics tutorials.