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How some associations are coping in challenging economic times
By Paulette Vinette, CAE
January 19, 2009

While Canada officially resisted the R word (recession) for much of 2008, the members and funders of not-for-profit organizations knew it would happen and this has been reflected in their 2009 business plans. As someone whose life work has been serving the not-for-profit community, I've observed how numerous associations are coping in these challenging economic times. Here are some stories.
Trade associations lose their top dues-paying member
When a business association loses the membership of a company that is a market leader, it shakes the organization’s foundation. The board is expected to recommend a reactionary course of action to its membership. Popular solutions include:
Cut back programs

Cut back costs (can include staff positions)

Dip into the reserve

Merge with another organization to take advantage of the economies of scale.
Another solution is to dissolve the organization; however, this has not been the solution of choice for the associations we have observed.
Professional associations fear decline in event attendance
The majority of professional organizations have a resilient membership that needs the core services of their association to support their practice. However, attending events and conferences are another matter. Many organizations are moving to electronic meetings (e.g. webinars) to cut costs for their members and sustain participation. Others continue to host in-person events with a shorter program and less food/beverage.
Association sponsors withdraw
As organizations cut back on discretionary expenses, many not-for-profit sponsorships are cut. Some associations renegotiate the terms of sponsorship to retain them. Others forge ahead, cutting costs on their activities as best they can, all the while maintaining their existing sponsorship commitments and reducing budget expectations; they believe that better days lie ahead - 2011 is the popular forecast - and want to maintain the integrity of their sponsorship programs.
Charitable giving declines
An excellent article is available on Recession-ready fundraising: Recommendations for surviving hard times. Those organizations who invested in risk management planning know how to respond to a declining revenue base. For help, read You Need a Risk Management Strategy and Plan. Like the association scenarios already described in this article, charitable organizations either cut or get creative. Another helpful article appears on ASAE’s website: Fundraising in a Recession.
Ask your members to help
When a not-for-profit organization faces economic challenges, its best ally is its members. Members have networks they can tap. Members have friends and staff they can recruit. Members have experience they can use. Members have money and services they can donate.
High performing not-for-profit organizations focus on their core business - those programs that are unique and add value. In challenging times, this focus should be your priority. Play to your strengths.
Paulette in President of Solution Studio Inc., a consulting practice that serves the not-for-profit association community. Paulette co-authored two manuscripts on risk management & not-for-profit organizations and regularly conducts risk management, strategic planning and board development workshops. She can be reached at 1-877-787-7714 or Paulette@solutionstudioinc.com.