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 the organization 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.
Benchmark Survey Highlights
Revenue
REVENUE IMPROVED IN 2010 AND WE’RE OPTIMISTIC FOR 2011. IS THIS JUSTIFIED?
Member dues and sponsorship are the primary sources of revenue for all respondents.
Most of the respondents saw higher membership and sponsorship in 2010 and expect a further increase in 2011.
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. This seems to be based entirely on the economic outlook. Not on a confidence that the organization has a strategy to sustain and enhance revenue.
- 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 payroll.
Respondents are not investing in productivity-enhancing technology but they are investing in their web presence.
- The use of business process 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.
- However, outward-facing technology is quite current. Almost half of the respondents have done a major overhaul of their website within the past 12 months.
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.
Board Engagement and Efficiency
WE’RE WORKING WELL AS A BOARD
About half of the respondents consider their board members to be “highly engaged”. Just over 40% of them consider their board to be “highly efficient”. Smaller organizations had a higher level of engagement while larger organizations had a higher level of efficiency.
Value Proposition
WHAT IS OUR VALUE TO MEMBERS? WHAT IS OUR VALUE TO SPONSORS?
Most of us don’t know. Most respondents have a strong value proposition but less than a third of the organizations surveyed were highly confident that their board members could clearly state this 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? We need to articulate the message.
Planning for the Future
WE KNOW WHERE WE WANT TO GO. BUT WE DON’T HAVE AN IMPLEMENTATION PLAN…
Three quarters of the organizations surveyed have a current strategic plan. This is indeed good news. 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.