AMC Institute News Releases

Association management industry booming in weak economy

NEW YORK (Oct. 15, 2002) — Threatened by economic uncertainty, many associations in the United States — currently 147,000 strong — are being forced to re-evaluate their financial stability, efficiency, and future outlooks. Faced with financial pressures, staffing challenges and other resource issues, associations are increasingly hiring professional association management companies (AMCs) to manage their organizations.

AMCs are for-profit businesses that provide professional management and administrative services to tax-exempt or nonprofit organizations. They range in size from small proprietorships to corporations with offices in multiple cities. According to the AMCinstitute, 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.

“The rising popularity of associations hiring an AMC is not surprising,” said Dee Ann Walker, CAE, chair of the AMCinstitute and president of the Walker Management Group, Inc. in Nashville, Tennessee. “We are seeing more and more elected leaders with limited time to run their associations turning to AMCs for financial management, special events and conferences, and membership development.”

A 100-year-old industry, the trend toward AMCs has grown rapidly in recent years. According to the AMCinstitute, the number of AMCs has increased by 40 percent since 1990, and by 25 percent since 1995. Association management companies in the United States now manage budgets exceeding $2 billion collectively. The average AMC-managed association budget is $677,000. And the range of budgets for AMC-managed associations is anywhere from $50,000 to over $16 million annually.

For many organizations, AMCs offer a level of expertise that they would not have as a stand-alone entity. “AMCs run their association clients like businesses, focusing on the bottom line, while providing them with tremendous flexibility and adaptability,” said Walker. “An AMC provides leadership, strategic counsel and day-to-day management, giving volunteer leaders the opportunity to devote their limited time to policy, planning and leadership.”

The sharing of resources often increases the success of an industry or community, and is the very reason that many associations are formed. The AMCinstitute was formed this year to educate the public about AMC services and to provide information that will continue to enhance this industry’s ability to perform in today’s tough marketplace. Enhancing this industry’s success in turn will add value to the nonprofit associations that continue to offer professional and personal support across the nation.

Click here for a copy of the press release in Word format.