Reflecting on the Past, Preparing for the Future...The report provides insight into key benchmarks of association success, measures the reality of the past year and the ... social

Reflecting on the Past,Preparing for the Future

2016 Economic Impact onAssociations Report

April 2016

Dear Colleagues:

McKinley’s 2016 Economic Impact on Associations (EIA) Study marks the ninth installment in a series that examines the impact of shifting economic conditions on our sector. The report provides insight into key benchmarks of association success, measures the reality of the past year and the outlook for the coming one, and provides data that validates how challenges and opportunities can differ dramatically from one member sector to another.

While the EIA series took root at a time when associations were experiencing some of the harshest economic conditions they had ever faced, each subsequent installment has provided a fascinating and informed view of the association community and its resilience in times of both austerity and recovery. As the economy continues to improve, associations have shifted focus from short-term solutions to more deliberate strategies that bring promise of growth. In previous studies, we have seen increasing stability that indicates a strong future for the association community. This year, however, the EIA Study uncovered a return to more austere measures that were present during the Great Recession. While not nearly as severe as in previous studies, the increase in these measures could hint to the potential for another economic downturn in the future. As such, the emerging theme for this year’s report is reflecting on the past, preparing for the future.

We appreciate the time invested in this project by each of the nearly 300 association executives who responded to the survey, and we look forward to continuing to deliver meaningful studies that help organizations understand the larger environments in which they—and their members—are operating. If you would like to discuss the data in more depth or arrange for a presentation for your staff or Board, please be in touch.

Best wishes for increased stability and growth.

1227 25th Street NW Suite 201 Washington DC 20037

t: 202.333.6250 mckinley-advisors.com

Jodie Slaughter, FASAEPresident andFounding Partner

Jay Younger, FASAEManaging Partner andChief Consultant

Shelley Sanner, CAESenior VP, Consulting

Patrick Glaser, MA, MPADirector of Research

Alison Bramer, MSWResearch Manager

Reflecting on the Past, Preparing for the Future | 2016 Economic Impact on Associations 1

Table of Contents

2 | Introduction & Survey Methodology3 | Respondent Profile7 | 2015 Economic Impact9 | 2016 Outlook

Optimism for the Coming Year

Concerns Across Business Lines

Organizational Priorities 16 | Programs, Services, and Functions

2015 Experiences

2016 Expectations19 | Staffing20 | Membership

Retention

Dues24 | Research Activities26 | Partial List of Participating Organizations


In the midst of the Great Recession in 2009, McKinley Advisors launched the first wave of annual research surveys that examine how associations cope with, manage, and, in some cases, thrive in dramatically changing economic conditions. Since the initial report, the EIA series has provided a view of the association landscape throughout the ever-changing economic conditions and the data has shown the resilience of associations during this tumultuous time period. This year, findings show that association executives are still enjoying stability but have also revisited preservation methods of the past in an effort to preserve this stability. While this is by no means a trend, it does point to future economic conditions that may affect associations and their members.

So what has changed for associations? Among the key findings from this year’s study:• For the fourth year in a row, the majority of

respondents report that the impact of the economy of the previous year on their association was about what was expected. However, for the first year since 2013, slightly fewer respondents report that the economic conditions on their association in 2015 were better than expected and slightly more report that the economic conditions were worse than expected in 2015.

• Nearly all association executives are optimistic about the year 2016 for their organization but there has been a gradual increase in pessimism since the 2014 study.

• Associations are slightly more concerned across core business lines moving into 2016 than in the previous year.

• Although priorities continue to broaden, membership remains the primary area of focus for associations as new member acquisition is the top priority for associations heading into 2016.

• Member retention rates remain stable, and associations reporting a retention rate of less than 85% are at their lowest point since 2012.

• Associations have expanded programs and services in 2015 and are planning to continue that expansion into 2016. However, this growth has been accompanied by budget cuts and staffing changes.

If you wish to participate in future benchmarking studies or are interested in a tailored presentation of the EIA results to your staff or board of directors, please contact Alison Bramer at [email protected].

Survey MethodologyMcKinley deployed an online survey to association executives and staff on January 20, 2016 to collect key data around the economy, its impact on associations, how associations are responding, and implications for the future. Survey invitations were sent to McKinley contacts as well as distributed through various social media channels to collect as broad a response as possible. The survey remained open until February 19, 2016 and resulted in 277 responses representing a broad spectrum of the association community.

Introduction


Organization Structure: For the first time since the 2012 study, less than half of respondents (48%) represent professional societies (consisting mostly of individual members), 28% are from trade associations, 20% from a “hybrid” association, 3% from a philanthropic or cause-related organization, and 2% describe their association as “other.” Further, 46% of respondents represent international associations, 41% are from national associations, and 13% state that their organization’s scope is state, regional, or local.

Industry Represented: Twenty-four percent of the survey respondents represent healthcare associations, 15% describe their organizations as representing scientific and engineering fields, and education and humanities associations account for 10% of respondents. The balance represents a variety of industries including finance/accounting, architecture/design, food industry, manufacturing, legal, and insurance.

Organization Size: Fifty-five percent of survey participants represent organizations whose annual operating budgets are less than $10 million, while 14% have budgets of over $50 million. Forty percent of professional societies have a membership base of less than 10,000 individuals, while 38% of trade associations have fewer than 300 members.

Survey Respondent Profile: Senior executives represent the majority of responses, with 92% holding a director level position or higher and 40% of total respondents indicating that they hold the position of Executive Director or Chief Executive Officer. The remaining participants reflect the breadth of the profession and represent a variety of responsibilities.

CHART 1

Which of the following best

describes the organization you

work for? Total Responses: 250

Professional (mostly individual members)

48%

Trade (mostly organizational members)

28%

Hybrid (both organizational and individual members)

20%

Philanthropic / Cause Related

3%

Other

2%

Respondent Profile


3%

1%

1%

1%

1%

2%

2%

2%

2%

2%

2%

2%

3%

3%

4%

4%

6%

9%

10%

15%

24%

Other

Government

Retail

Sports / Leisure

Telecommunications

Research

Association Management

Building / Construction

Real Estate

Energy / Utilities

Professional Services

Transportation

Insurance / Actuarial

Legal

Manufacturing

Food Industry

Architecture / Design

Finance / Accounting

Education / Humanities

Scientific / Engineering

Healthcare

CHART 2 CHART 3

What field/industry does your association represent?Total Responses: 250

What is your organization’s

geographic scope?Total Responses: 251

State

10%

National

41%

Regional/Local

3%

International

46%


13%

11%

23%

12%

23%

17%

100,000 or more

50,000 to 99,999

20,000 to 49,999

10,000 to 19,999

6,000 - 9,999

Fewer than 5,000

4%

10%

15%

17%

22%

19%

14%

$100 million or more

$50 million - $99.9 million




$2 million to $4.9 million

Less than $2 million

CHART 4

What is your organization’s annual operating budget? Total Responses: 251

CHART 5

Approximately how many members belong to your organization? Total Responses: Professional: 105 Trade: 66

5%

14%

23%

15%

6%

26%

12%

6,000 or more

2,000 to 5,999

1,000 to 1,999

500 to 999

300 - 499

100 - 299

Fewer than 100

Trade Professional


6%

11%

12%

13%

13%

13%

13%

13%

15%

17%

17%

26%

26%

28%

35%

43%

52%

Other

Publications

Component Relations

I.T. / Technology

Meetings and Expositions

Education / Professional Development


Research

Human Resources

Government Affairs / Relations

Development / Fundraising

Communications / Public Relations

Marketing

Operations / Administration

Membership

Board / Governance

Executive Management

2%

4%

5%

5%

12%

14%

17%

40%

Other

Associate Executive Director / Deputy CEO

Manager

Managing Director / Senior Director

Other C-Suite (COO, CFO, CMO)

Senior Vice President / Vice President

Director

Executive Director / CEO

CHART 7

Which of the following best describe your areas of responsibility? Total Responses: 254

Note: Responses will not sum to 100% because of the ability to select more than

one option.

CHART 6

Which of the following most closely describes your position within your organization? Total Responses: 250


Worse than expected About what was expected Better than expected

28%

16%

11%

10%

10%

8%

13%

37%

42%

45%

57%

56%

57%

55%

36%

42%

44%

33%

33%

35%

32%

2010

2011

2012

2013

2014

2015

2016

6%

11%

12%

13%

13%

13%

13%

13%

15%

17%

17%

26%

26%

28%

35%

43%

52%

Other

Publications

Component Relations

I.T. / Technology

Meetings and Expositions

Education / Professional Development


Research

Human Resources

Government Affairs / Relations

Development / Fundraising

Communications / Public Relations

Marketing

Operations / Administration

Membership

Board / Governance

Executive Management

Economic stabilization continues but hints at worsening economic conditions. For the fourth year in a row, the majority of respondents (55%) report that the impact of the 2015 economy on their association was about what was expected. Each year, more association executives are correctly anticipating the impact of the economy on their association, possibly because respondents have become more attuned to the economy given the larger-than-normal swings in the past decade and because of the increasing stability of the economy in recent years. However, for the first year since 2013, slightly fewer respondents report that the effect of economic conditions on their association in 2015 were better than expected (32%) and slightly more report that the economic conditions were worse than expected in 2015 (13%).

CHART 8

Looking back on 2015, was the impact of economic conditions on your association: Total Responses:

2015 Economic Impact

2016: 250 2015: 269 2014: 248

Stability

Improving Economy

2013: 192 2012: 183 2011: 2212010: 348


20%

13%

11%

8%

64%

61%

60%

52%

16%

26%

29%

39%

Education / Humanities


Scientific / Engineering

Healthcare

CHART 9

2015 Impact by Field/IndustryTotal Responses: 250


The economic impact of 2015 varies by

field and organization type. Respondents in the Education/Humanities sector were better at predicting how the economic conditions of 2015 would impact their association, with 64% reporting that the impact was about what was expected while those in the Healthcare sector found the economic impact of 2015 on their association to be more challenging to predict. However, 39% of respondents from Healthcare associations note that the economic conditions on their association were better than expected in 2015.

Professional, trade, and hybrid organizations report anticipating the impact of the 2015 economy on their organization with 52%, 61%, and 57%, respectively, noting that the impact was about what was expected. However, trade organizations report that their expectations more closely aligned with actual economic conditions, while professional organizations were more likely to experience a better than expected impact.

CHART 10

2015 Impact by Organization Type Total Responses: 250


16%

10%

11%

57%

61%

52%

27%

29%

37%

Hybrid

Trade

Professional


The outlook for the coming year is optimistic despite

a gradual increase in pessimism. The trend towards an annual increase in the level of optimism paused for the 2016 study as slightly fewer respondents report that they are optimistic about their organization for 2016. Although the majority indicate some level of optimism (86% report that they are optimistic about their organization for 2016), more associations indicate that they are pessimistic heading into 2016, 14% compared to 11% in 2015.

Hybrid organizations report slightly higher levels of overall optimism for 2016 with 89% of respondents noting that they are somewhat or very optimistic for their association this year compared to 87% of professional and 86% of trade organizations. However, respondents from trade associations were more likely to indicate that they are very optimistic heading into 2016 (32% compared to 28% of professional and 19% of hybrid organizations).

Respondents from organizations with a smaller geographic focus were more likely to indicate optimism for the coming year. Ninety-four percent of respondents from associations with a state, regional, or local geographic focus indicate some level of optimism for 2016 compared to 93% of nationally focused associations, and 80% of international or global associations.

CHART 11

In general, how are you feeling about 2016 for your association?Total Responses:

2016 Outlook: Optimism for the Coming Year

2016: 220 2015: 255 2014: 220 2013: 170 2012: 161

Very pessimistic Somewhat pessimistic Somewhat optimistic Very optimistic

12%

11%

8%

11%

13%

71%

65%

67%

60%

59%

17%

22%

25%

29%

28%

2012

2013

2014

2015

2016

CHART 13 Somewhat optimistic Very optimistic

55%

64%

58%

25%

29%

35%

International / Global

National

State / Regional / Local

CHART 12 Somewhat optimistic Very optimistic

54%

59%

70%

32%

28%

19%

Trade

Professional

Hybrid


Associations are more concerned about

key issues moving into 2016 than in the

previous year. Respondents were asked to share their levels of concern across core business lines. Concern across all core business lines remains relatively consistent from 2015 with slight increases in attendance at other educational seminars (4 percentage point increase from 2015), product sales (4 percentage point increase from 2015), and volunteer participation (4 percentage point increase from 2015). In this year’s study, membership recruitment remains as the area of highest concern with 71% noting some level of concern for 2016. However, 61% of respondents report that they are concerned with competition heading into 2016. When asked to describe the impact that competition has had on their association thus far, respondents point to competing associations, for-profit educational providers, free programming offered by other organizations, and inability to differentiate products and services in an increasingly saturated market.

CHART 14

Considering the current economic conditions, how concerned are you with the following issues?Total Responses: 220

4 and 5, extremely concerned

Membership recruitment: 71%

Membership retention: 65%

Competition: 61%

Sponsorship: 57%

Attendance at other educational seminars: 54%

Product sales: 53%

123

456

2016 Outlook: Concern Across Business Lines


Volunteer participation

Advertising Annual meeting attendance

Product sales Attendance at other educational

seminars

Sponsorship Competition* Membership retention

Membership recruitment

2011 2012 2013 2014 2015 2016

CHART 15

Considering the current economic conditions, how concerned are you with the following issues?Total Responses:

4 and 5, extremely concerned, * Category added in 2016

2016: 220 2015: 255 2014: 220 2013: 170 2012: 162 2011: 237

71%

65%61%

57%

53%52%

45%42%

54%


With the exception of sponsorship, respondents from trade associations were less likely than respondents from professional or hybrid organizations to express concern across core business lines for 2016. Conversely, professional organizations report to be more concerned than trade or hybrid organizations with the exception of annual meeting attendance (54% concerned) and advertising (50% concerned). For these two business areas, respondents from hybrid organizations express the most concern (56% and 62%, respectively). While these differences do exist, membership recruitment and retention remain the top areas of concern for all organization types.

CHART 16

Concern by Organization TypeTotal Responses: 220

4 and 5, extremely concerned

Professional

Trade

Hybrid

42%

62%

56%

56%

56%

53%

60%

70%

74%

37%

29%

48%

38%

46%

56%

53%

56%

65%

47%

50%

54%

63%

63%

59%

67%

72%

76%

Volunteer participation

Advertising

Annual meeting attendance

Product sales

Attendance at other educational seminars

Sponsorship

Competition

Membership retention

Membership recruitment


Priorities continue to broaden; associations no longer have a highest priority for the coming year. In 2011, new member acquisition and member retention were the highest priorities among associations by a relatively large margin, 44% and 41% respectively. As economic conditions have improved, associations continue to expand priorities to cover more areas of focus. While new member acquisition is the highest priority for 2016 (27%), it is not the preeminent area of focus. In fact, less than one-third of respondents indicate that any one area is a focus for their association in 2016. However, membership, in general, emerges again as the highest priority for participating associations.

CHART 17

What are your association’s three highest priorities for 2016?Total Responses: 223

Generating non-dues revenue

26%

Improving member retention

22%

AMS/database upgrade/

conversion

18%New member

acquisition

27%

Developing new methods for member engagement

25%

Diversifying membership/ attracting new

audiences

19%

2016 Outlook: Organizational Priorities


Increasing participation

among younger members

Branding / increasing awareness

Increasing meeting

attendance

Website enhancements

AMS / database upgrade/

conversion

Diversifying membership / new audiences

Improving member

retention

Developing new methods for

member engagement

Generating non-dues revenue*

New member acquisition

CHART 18

What are your association’s three highest priorities for 2016?Total Responses:

Note: Responses will not sum to 100% because of the ability to select more than one option. *Category added in 2016.

2016: 223 2015: 261 2014: 219 2013: 171 2012: 162 2011: 237

27%26%25%

22%

19%18%

17%17%16%16%

2011 2012 2013 2014 2015 2016


Increasing participation

among younger members

32%

While new member acquisition remains the top priority for all respondents, professional associations report that improving member retention is the highest priority (30%) and hybrid organizations point to generating non-dues revenue (27%) as the top area of focus for 2016. In addition to new member acquisition (35%), respondents from trade associations report that developing new methods of member engagement (33%) and generating non-dues revenue (32%) are high priorities for their association.

Healthcare

Scientific/

Engineering

CHART 20

2016 Priorities by Field/IndustryTotal Responses: 223

Improving member

retention

32%

Developing new methods for member

engagement

40%

Improving

member retention

30%

Generatingnon-duesrevenue

41%


36%


20%


32%

Website enhancements

36%Developing new

methods for member engagement

27%


20%


26%

Finance/

Accounting

Education/

Humanities

CHART 19

2016 Priorities by Organization TypeTotal Responses: 223. Note: Chart is sorted by overall priorities.

Professional Trade Hybrid

25%

20%

20%

27%

18%

13%

13%

33%

32%

35%

21%

30%

23%

24%

24%

Diversifying membership/attracting new audiences


Developing new methodsfor member engagement




Layoffs / elimination of

Outsourcing of staff function

Change in investment strategy

Programs, Services, and Functions: 2015 Experiences

Associations continue to expand programs and services. For the fourth year in a row (since the option was introduced in the 2013 study) expansion of programs and services emerges as the top business decision that respondents experienced at their association in 2015 (46%). However, the percentage of respondents indicating that their association expanded programs and services in the previous year decreased by 3 percentage points from the 2015 to 2016 studies.

However, associations have expanded programs and services without significant increases to the organization’s budget. In fact, only 8% of respondents report that their association experienced significant budget increases in 2015 while 19% noted budget cuts. The ability of associations to handle this expansion could be attributed to staff reorganization (36%) and outsourcing of staff function (15%).

Similarly, respondents note that their association took more austere measures in 2015 than were taken in 2014. This year’s study saw an increase in the percentage of respondents who report that their association experienced staff reorganization (10 percentage points increase), layoffs/elimination of positions (4 percentage points increase), and budget cuts (3 percentage points increase).

46%Expansion of programs and services

Staff reorganization36%Budget cuts19%

15%

CHART 21

Which of the following did your association experience in the past year? Total Responses: 255. Note: Responses will not sum to 100% because of the ability

to select more than one option.

14%

12%positions


Merger / consolidation*

Freeze on salary

increases

Hiring freeze Reduction of programs and

services

Significant budget

increases^


positions

Change in investment

strategy


Budget cuts Staff reorganization

Expansion of programs and

services^


CHART 22

Which of the following did your association experience in the past year? Total Responses:

Note: Responses will not sum to 100% because of the ability to select more than one option.

*Category added in 2016 ^Category added in 2013

2016: 255 2015: 265 2014: 248 2013: 190 2012: 132 2011: 178

36%

19%15%14%

12%8%7%

6%5%2%

2011 2012 2013 2014 2015 2016

46%


Expansion is expected to continue in

2016. Sixty-five percent of respondents are currently expanding or expect to expand programs and services in 2016. Expansion of programs and services is by far the most expected change for associations in 2016. However, a relatively high percentage of respondents also expect to see staff reorganization (36%), outsourcing of staff functions (30%), and budget cuts (28%), in 2016.

TABLE 23

What do you expect to happen at your association in 2016 as a result of current economic conditions?Total Responses: 220

Will happen

Likely to happen

Not likely to happen

Will not happen

Don't know

Expansion of programs and services 32% 34% 27% 6% 2%Staff reorganization 14% 21% 41% 15% 8%Outsourcing of staff functions 13% 17% 45% 16% 9%

Budget cuts 12% 16% 47% 22% 4%

Significant budget increases 9% 14% 47% 28% 3%Change in investment strategy 8% 18% 40% 15% 19%Hiring freeze 7% 9% 45% 32% 7%Reduction of programs and services 4% 11% 52% 30% 4%Layoffs / elimination of positions 3% 9% 49% 32% 7%Freeze on salary increases 2% 5% 50% 33% 11%Merger/consolidation 2% 6% 26% 57% 9%

Change in investment

strategy

26%

Expansion of programs and services

65%

Staff reorganization

36%Budget cuts

28%


30%

Significant budget

increases

23%

65% say it’s currently happening, definitely will happen, or probably will happen

Programs, Services, and Functions: 2016 Expectations


Associations are adding new staff

positions. Sixty-nine percent of respondents report that new staff positions were added at their association last year. After experiencing a slight dip in the 2014 study, the 2016 study marks a 2% increase in the number of associations that report adding new staff positions in the previous year and a 21% increase since the question was asked in 2011. Further, for the second time in the EIA study, over half of participants (55%) anticipate that their association will add new staff positions in the current year (2016).

Respondents from Scientific/Engineering organizations were most likely to report that their association added new staff positions in 2015 (78%) while respondents from the Finance/Accounting sector were the least likely to indicate new staff positions (55%). Looking forward to 2016, Healthcare organizations were most likely to note that their association plans to add new staff positions this year (63%).

Staffing

CHART 25

Does your association plan to add new staff positions next year? Total Responses: 2016: 219 2015: 253 2014: 221

2013: 172 2012: 159 2011: 236

CHART 24

Did your association add new staff positions in 2015?Total Responses: 2016: 250 2015: 269 2014: 249

2013: 189 2012: 182 2011: 223

69%

67%

59%

64%

59%

48%

Indicated Yes in 2016

2015

2014

2013

2012

2011

69%

67%

59%

64%

59%

48%

Indicated Yes in 2016

2015

2014

2013

2012

2011


Associations report stable membership

retention trends. After the initial increase in retention in 2011, associations report stabilization with little growth. The bump experienced in 2011 was a natural improvement over the worst year in retention (2010). Since the 2011 study, there has been a trend towards retention rate stabilization with about half of respondents reporting that their retention rate has stayed the same year after year. After experiencing an increase in the number of participants who report that their retention rate increased in the previous year in 2015, respondents now point again to retention rate stabilization with more than half (54%) noting that their association’s retention rate has stayed the same over the past 12 months. Further, respondents who report a retention rate of lower than 85% are at their lowest point since 2012 (31%).

Membership: Retention

Don’t know Decreased Stayed the same Increased

CHART 26

Over the past 12 months, has your retention rate:Total Responses: 2016: 248 2015: 269 2014: 233 2013: 185 2012: 156 2011: 229 2010: 301

Less than 70% 70-74% 75-79% 80-84% 85-89% 90-94% 95-100%

46%

23%

24%

24%

22%

21%

23%

39%

45%

46%

49%

54%

49%

54%

11%

30%

28%

24%

21%

28%

21%

2010

2011

2012

2013

2014

2015

2016

8%

7%

5%

3%

5%

6%

7%

4%

7%

10%

3%

5%

4%

7%

5%

6%

11%

10%

10%

7%

11%

10%

6%

10%

21%

18%

15%

16%

18%

18%

15%

11%

20%

22%

21%

27%

18%

20%

25%

24%

22%

20%

21%

24%

23%

21%

26%

26%

11%

12%

19%

18%

20%

18%

17%

19%

2009

2010

2011

2012

2013

2014

2015

2016

CHART 27

What is your current membership retention rate?Total Responses: 2016: 243 2015: 261 2014: 227

2013: 185 2012: 159 2011: 2282010: 301


The chart to the right depicts the net membership growth reported in each EIA Study. The net membership growth is calculated to represent the difference between the percentage of respondents who reported a higher membership trend over a five-year period and the percentage of respondents who reported a lower membership trend over the same five-year period.

Net Membership Growth =(% Reporting Higher Membership Trend) – (% Reporting Lower Membership Trend)

The annualized membership trends for each EIA Study are compared to the annual U.S. Gross Domestic Product (GDP). The lowest net membership growth (6% reported in 2011) corresponds to the dip in GDP that began in late 2008. Subsequent years of data collection illustrate that improvement occurred as economic conditions stabilized. The 2015 study revealed the highest net membership growth recorded with 21% benefitting from five full years of stable economic expansion. For the 2016 study, a lower net membership growth is reported (15%). This can be attributed to the tapering of economic growth that occurred in 2014.

CHART 28

Annualized five-year membership trend analyzed by U.S. Annual GDPTotal Responses: 2016: 242 2015: 265 2014: 235 2013: 191 2012: 159 2011: 234 2010: 315

16%

6%

8%

14%

12%

21%

15%

$12.0

$14.0

$16.0

$18.0

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Net Annualized Five-Year Membership Trend

GDP (year end, trillions)

Five-year range included in net growth

20102011

20122013

20142015

2016


When analyzed by sector, the five-year annualized membership trends reported by respondents vary, as would be expected. Participants that represent Healthcare organizations report higher than average membership trends over the past five years while those that focus on Finance/Accounting and Scientific/Engineering societies report primarily flat membership trends. Respondents in the Education/Humanities sector have seen increases over the past several years but have recently reported lower net membership growth.

CHART 29

Annualized five-year membership trend analyzed by field, 2010-2016Total Responses:

Note: Only those segments with at least 25 respondents were included

in the analysis. An asterisk (*) denotes insufficient data.

2016: 242 2015: 265 2014: 235 2013: 191 2012: 159 2011: 234 2010: 307

-4%

-3%

-25%

14%

37%

23%

4%

2010

2011

2012

2013

2014

2015

2016

Education/Humanities

44%

54%

29%

48%

26%

51%

37%

Healthcare

3%

-4%

13%

6%

6%

-2%

6%

Scientific/Engineering

5%

38%

*

6%

*

6%

-4%

Finance/Accounting


Associations are not systematic in

their approach to dues increases. Most organizations apply a flexible, organic and market-driven approach to determine the frequency and amount of membership dues increases. Membership dues increases are most often informed by multiple analyses, not “mandated” by bylaws. When asked to describe how their association approaches dues increases, 62% of respondents report that their organization increases dues as needed while 33% note that dues are increased on a regular, pre-determined schedule.

The fact that dues rates often rise by a small percentage and associations may not have the necessary tools to measure the immediate effect of these increases means that associations are often “flying blind” with regard to the impact of their membership pricing decisions. Sixteen percent of associations report that their attrition rate was higher than normal after their last dues increase while 60% note that it was about the same. State, regional, or local associations were more likely to report that their attrition rate was higher after their last dues increase (24% compared to 18% for nationally focused associations and 16% for associations with an international/global focus).

Membership: Dues

Regular, pre-determined schedule

33%

As needed

62%

Unsure

3%

CHART 30

Which of the following best describes your association’s approach to dues increases?Total Responses: 240

Other

2%

CHART 31

How did the attrition rate after the last dues increase compare to your association’s normal annual attrition rate?Total Responses: 202

Unsure18%

Much lower3%

Slightly lower4%

About equal

60%

Much higher

3%

Slightly higher

13%


Associations conduct a variety of research at varying frequencies. When asked to indicate the frequency of research activities conducted by their organization, the majority of respondents (62%) report that their association conducts a member needs assessment at least once every three years. However, 92% note that their association conducts evaluation (conference, program, product, etc.) research in the same time frame. In fact, evaluation research was the most frequent research conducted by respondents with 84% reporting that their organization conducts this type of research annually. As associations continue to expand programs and services to meet the needs of members, it is expected that the frequency of these studies will increase among associations.

Research Activities

84%Conduct evaluation research at least once a year 62%

Conduct a needs assessment at least once every three year 40% Never conduct dues or

pricing tolerance research

TABLE 32

How often do you conduct research with members and non-members for the following purposes: Total Responses: 226

Never do

this type of research

Once a year Every 2-3 years Every 4-5 years Less than every 5 years Unsure

Evaluation (conference, program, etc.) 3% 84% 7% 3% 0% 3%Member/customer satisfaction 5% 39% 34% 15% 5% 2%Strategic planning 8% 18% 36% 24% 7% 6%Needs assessment 10% 21% 42% 17% 7% 5%Communications preferences/readership 10% 23% 41% 13% 6% 7%Field/industry research 22% 36% 25% 7% 6% 6%Branding 26% 7% 23% 17% 18% 9%Product development 25% 21% 29% 7% 6% 12%Market identification 29% 13% 24% 12% 10% 13%Dues/pricing tolerances 40% 6% 15% 15% 14% 11%


When segmented by organization type, trade associations are more likely than other organization types to conduct evaluation research, strategic planning research, and field/industry research at least once every three years. Professional associations are more likely to conduct member/customer satisfaction research, needs assessments, and market identification studies while hybrid organizations are more likely to conduct communications preferences/readership studies, branding research, product development research, and dues/pricing tolerance studies at the same frequency.

Market research can help associations draw meaningful conclusions and serve as a catalyst for growth and transformation. However, there are challenges to data collection, analysis, and implementation. When asked to indicate the most significant challenges that their association faces when it comes to market research, 44% report that their association does not effectively use the data that is collected. This was closely followed by too many surveys or requests for member participation (40%), lack of resources to conduct research (38%), and willingness of members to participate (37%).

CHART 33

Research Activities by Organization TypeTotal Responses: 226, Note: Chart is sorted by overall priorities and % represents those

who conduct this type of research at least once every three years

Professional Trade Hybrid

23%

30%

55%

38%

51%

64%

57%

52%

67%

84%

17%

37%

52%

27%

69%

63%

62%

64%

74%

97%

22%

40%

50%

28%

63%

63%

65%

48%

75%

91%

Dues / pricing tolerances

Market identification

Product development

Branding

Field / industry research

Communications preferences / readership

Needs assessment

Strategic planning

Member / customer satisfaction

Evaluation (conference, program, etc.)


Academy of Managed Care PharmacyAmerican Academy of Implant DentistryAmerican Academy of Orthopaedic SurgeonsAmerican Academy of Sleep MedicineAmerican Association for Laboratory Animal ScienceAmerican Association of Engineering SocietiesAmerican Association of Nurse Assessment CoordinationAmerican Association of Physicists in MedicineAmerican College of Healthcare ExecutivesAmerican Dental AssociationAmerican Epilepsy SocietyAmerican Geophysical UnionAmerican Institute of ArchitectsAmerican Occupational Therapy AssociationAmerican Oil Chemists’ SocietyAmerican Physical Therapy AssociationAmerican Society of Addiction MedicineAmerican Society of Civil EngineersAmerican Society of Gastrointestinal EndoscopyAmerican Society of Heating, Refrigerating and Air-Conditioning EngineersAmerican Society of Interior DesignersAmerican Speech-Language-Hearing AssociationAmerican Traffic Safety Services AssociationAmerican Urogynecologic SocietyAmerican Water Works AssociationAmerican Welding Society

Apartment and Office Building AssociationAppraisal InstituteArgentumArizona Society of CPAsAssociation for Advanced Life UnderwritingAssociation for Corporate GrowthAssociation for Supervision and Curriculum DevelopmentAssociation of Chamber of Commerce ExecutivesAssociation of College and Research LibrariesAssociation of Home Appliance ManufacturersAssociation of periOperative Registered NursesAssociation of Nutrition and Foodservice ProfessionalsAuto Care AssociationBiotechnology Innovation OrganizationBOMA InternationalCalifornia Special Districts AssociationClub Managers Association of AmericaComputing Technology Industry Association (CompTIA)Construction Management Association of AmericaConsumer Healthcare Products AssociationCouncil for Responsible NutritionCouncil of Insurance Agents & BrokersCouncil on FoundationsCouncil on Undergraduate ResearchDRI - The Voice of the Defense BarEcological Society of America

Partial List of Participating Organizations


Electronic Retailing AssociationElectronic Transactions AssociationEndocrine SocietyEngineers Without Borders USAEquipment Leasing and Finance AssociationEye Bank Association of AmericaGeorgia Society of Association ExecutivesGlobal Cold Chain AllianceGolf Course Superintendents Association of AmericaHealthcare Information and Management Systems SocietyHeart Rhythm SocietyIllinois CPA SocietyInstitute of Electrical and Electronics EngineersInstitute of Industrial and Systems EngineersInternational Association for Healthcare Security and SafetyInternational Association of MoversInternational Association of Oral and Maxillofacial SurgeonsInternational Bridge, Tunnel and Turnpike AssociationInternational Code CouncilInternational Dairy Foods AssociationInternational Facility Management AssociationInternational Food Information CouncilInternational Foodservice Distributors AssociationInternational Sign AssociationInternational Society of AutomationInternational Society on Thrombosis and Haemostasis

Iowa Society of CPAsISA - The Association of Learning ProvidersMaine Society of CPAsMarketing Research AssociationMaryland Association of CPAsMeals on Wheels AmericaMinnesota Medical AssociationMinnesota Society of CPAsMissouri Society of CPAsMissouri State Teachers AssociationMontana Society of CPAsNAFSA: Association of International EducatorsNational Architectural Accrediting BoardNational Association for College Admission CounselingNational Association for Gifted ChildrenNational Association of Colleges and EmployersNational Association of Criminal Defense LawyersNational Association of Educational ProcurementNational Association of Independent SchoolsNational Association of Mutual Insurance CompaniesNational Association of School PsychologistsNational Business Officers AssociationNational Council of Architectural Registration BoardsNational Council of Examiners for Engineering and SurveyingNational Foundation for Infectious DiseasesNational Genealogical Society


National Glass AssociationNational Investor Relations InstituteNational Recreation and Park AssociationNorth Carolina Nurses AssociationOhio Society of CPAsPediatric Nursing Certification BoardPennsylvania Institute of CPAsPRISM InternationalProduce Marketing AssociationProfessional Insurance Marketing AssociationRecreation Vehicle Dealers AssociationRenal Physicians AssociationSOCAP InternationalSociety for Marketing Professional ServicesSociety for NeuroscienceSociety for the Advancement of Material and Process EngineeringSociety of Fire Protection EngineersSociety of Interventional RadiologySociety of Manufacturing EngineersSociety of Tribologists and Lubrication EngineersSoroptimist International of the AmericasSoutheastern Medical Device AssociationSouthwest Cable Communications AssociationTax Executives Institute TESOL International AssociationThe Fertilizer Institute

The Gerontological Society of AmericaToy Industry AssociationUniversity Industry Demonstration PartnershipVirginia Society of CPAsWateReuseWine & Spirits Wholesalers of AmericaWisconsin Institute of CPAs

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