“Association Management”
Associations
Associations offer individuals information, education, influence and access to resources that might not otherwise be available to them. All of this for an annual or one-time membership contribution to the organization. As a result of providing unique services and benefits, associations have flourished in the recent past.
It’s estimated that there are more than 100,000 local, state, regional, national and international associations based in the United States. Government privatization and public interest in networks, group buying and lobbying power have spurred rapid growth in the number of trade associations, professional societies and specialized organizations.
A New Industry: Association Management
The proliferation of associations created a new industry: association management. Association members have come to expect efficient and effective staff to fulfill association objectives. After all, many members serve their association as volunteers; they have their own jobs and outside responsibilities. More and more, members expect the association to be managed by specialists experienced in association management. Members and volunteers are experts in their trade or profession — they bring vision and context to an organization; association executives are strategists — they bring the tools for implementation of the association’s vision.
A New Business: the Association Management Company (AMCs)
Until the 1950s, associations have typically been run by volunteers or paid staff. Association management companies (AMCs), which allow associations to share operating costs and resources, represent a relatively new, third alternative to association management. AMCs continue to grow in popularity as associations become more specialized and as AMCs establish a track record for providing organizations with reliable and affordable management expertise.
AMCs are particularly attractive to new and small associations because the AMC provides these organizations with experience and expertise without the overhead costs associated with traditional association management. Services, staff, equipment, rent, utilities and other costs are shared by all the organizations the AMC represents. With the exception of direct expenses like printing and postage, many operating expenses are incorporated in the AMC’s management fee and reduced by sharing resources. Many AMCs also offer small organizations the flexibility to contract for limited or hourly services.
Montana: an AMC Frontier
There are only a handful of AMCs in Montana, and even fewer full service AMCs. Many of the Montana companies which manage multiple associations specialize in government affairs and some offer those services exclusively. It’s not uncommon for law or lobbying firms to expand into association management, providing administrative services to organizations with whom they already contract as lobbyists or government affairs specialists.
Most members are in touch with their associations by phone or electronic means, which often gives associations flexibility in terms of location. Technology makes it possible for RMMS to provide services to associations that have members all over the U.S., indeed, all over the world. A Montana location offers some economic benefits over larger, metropolitan areas.
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