Friday, 5th June 2009

Association CEOs Pessimistic About Impact of Economy on Their Organizations New ASAE & The Center Study Shows

Association CEOs Pessimistic About Impact of Economy on Their Organizations New ASAE & The Center Study Shows
Source: ASAE & The Center for Association Leadership

A new study released today by ASAE & The Center for Association Leadership shows association CEOs are pessimistic about the impact of the economy on their organizations. Based on the Winter 2009 Impact Study: Beliefs, Behaviors and Attitudes in Response to the Economy, a study of professionals who belong to one or multiple associations, the new study compares the member perspective with the view of the associations that serve them.

Launched in March, nearly 1,100 associations participated in the study, with only one respondent allowed to participate from each organization. The study equalizes the disparity between the small number of large associations (with many staff) and the large number of small associations, with very few staff, ensuring that the results don’t favor any group by getting multiple answers from the same association.

The findings of the association study show that a vast majority of executives believe the current economic climate will negatively impact financial performance of their organizations. Two-thirds of executives report that both revenue from membership and overall revenue will decline in the coming year. This suggests that associations don’t believe non-dues revenue will make up the shortfall they expect as a result of declining membership. In fact, it appears executives are bracing for declines in non-dues revenue. Consistent with that conclusion is the close relationship between the expected decline in membership revenue (13.4 percent) and an anticipated 15.7 percent decline in overall revenue. Executives are predicting greatest non-dues revenue declines in events and giving.

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Category:

• Business and economics (DocuTicker)
• Nonprofits (DocuTicker)

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