Trends by xuyuzhu

VIEWS: 6 PAGES: 2

									FOR IMMEDIATE RELEASE                      Contacts: Laura Hyland, Sumner Rider, 212/297-2110
                                           Dee Ann Walker, Walker Mgmt. Group, 615/254-3687




                       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.               more…
[Association Management Industry Booming in Weak Economy, page 2]



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.


 For more information, please visit the AMCinstitute Web site at www.amcinstitute.org.


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