Study: How AMCs Benefit Associations

The AMC Institute has released new research demonstrating that associations that partner with association management companies (AMCs) enjoy significant revenue and asset benefits.

The study 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.

“We’ve long known about the qualitative benefits of the AMC model,” said AMC Institute Chair-elect Greg Schultz. “This research confirms that in almost every scenario, AMCs deliver strong financial performance and present a smart option for associations to consider. The findings are important for non-profits seeking to measure and maximize investments in their staff and headquarters.”

The independent study, conducted by Dr. James Gaskin of Brigham Young University, drew data from 167 randomly selected associations with a 501(c)(3) or 501(c)(6) tax status and a budget between $500,000 and $7.5 million.

“Given the wide variety of associations surveyed, and the random sampling applied, the findings are remarkably consistent,” said Gaskin, a professor of information systems at Brigham Young University. “When we analyzed the data, it was clear that associations of all types and sizes using the AMC model tend to be the strongest financially.”

Additional findings indicated that, on average, AMC-run associations have:

• Less liabilities as a percent of revenue.
• Lower expenses as a percent of revenue.
• Higher surpluses as a percent of revenue.

An executive summary of the research is available on the AMC Institute website.