Operational Support, Member Services, Revenue Generation

2011 Benchmark Survey for Membership Organizations

This annual survey of membership organizations was conducted in January of 2011. Membership organizations are not-for-profit entities who have dues-paying members and whose primary activity is providing services to those members.

There is very little data available for the membership organization niche. The purpose of this survey is to help to fill that void. The survey included 35 Canadian industry, trade and professional organizations of all sizes.

It was particularly timely this year, because most membership organizations are just starting to emerge from a battering due to the economic downturn.

The most important lesson from the survey is that many leaders of membership organizations do not think of it as a business.

Below are the highlights. The detailed survey results are available for purchase. To find out more about the survey or to purchase a copy, contact us at survey@zzeem.com.

The Canadian Society of Association of Executives (CSAE) is holding their National Conference & Showcase in Saskatoon this year from September 15 – 17, 2011. The Conference offers everything from Educational Seminars to Keynote Speakers and an excellent opportunity to network with your peers. If you are an executive or a director of a Canadian association you will want to attend this conference.

Erin Roberts, one of the partners at Zzeem, will be presenting the results of the 2011 Benchmark Survey for Membership Organizations. This is the only survey of its kind in Canada so this is a “not to be missed” opportunity. We look forward to seeing you there.

For more details please click on the link: CSAE

Benchmark Survey Highlights

Revenue

WE’RE OPTIMISTIC. BUT IS THIS JUSTIFIED?

Member dues and sponsorship are the primary sources of revenue for all respondents.

Almost all of the organizations surveyed have no legislated or regulatory requirement for membership. Membership is completely optional. And so is sponsorship, of course.

Despite this risk, we are surprisingly complacent about our membership. Fewer than half of us of us have a clearly defined process to attract and retain our members.

We are even more complacent about our sponsors. Less than a quarter of us have a clearly defined process to attract and retain our sponsors.

But we’re surprisingly optimistic. Three quarters of us expect membership to increase in 2011 and more than half of us expect sponsorship to increase.

  • Hope is not a strategy.

Expenses

The survey told us that many organizations found their costs increasing at the same time as their revenue was decreasing.

It also showed huge variations in productivity. We found out that many organizations in excess of $1 million in revenue are operating successfully with five employees or fewer whereas others of the same size have a substantially higher budget.

  • The use of technology is much more limited in this sector than in the for profit sector. Many processes that were automated years ago elsewhere are still performed manually by membership organizations. This is particularly true of finance and communication processes.

Financial Reserves

THIS IS A DANGER ZONE...

One quarter of the organizations surveyed have no financial reserves. Of those that do, three quarters have less than 12 months of reserves. But only half of us plan to add to our reserves in 2011.

Value Proposition

WHAT IS OUR VALUE TO MEMBERS? WHAT IS OUR VALUE TO SPONSORS?

Most of us don’t know. Less than a third of organizations surveyed were highly confident that their board members could clearly state their value proposition to a prospective member. Even fewer (only 13%) were highly confident that directors could clearly state their value proposition to a prospective sponsor.

  • If the board isn’t clear on the value proposition then who is?

Planning for the Future

WE KNOW WHERE WE WANT TO GO BUT WE DON’T HAVE AN IMPLEMENTATION PLAN...

Most of the organizations surveyed have a current strategic plan. But for those who do, one third have no operating plan to ensure that the strategic plan is implemented.

To find out more about the survey or to purchase a copy, contact us at survey@zzeem.com.