Running an Association in a Bad Economy – How to

Weather the Storm

American Psychological Association

2009 CESPPA Annual Meeting

Toronto, ON

August 4, 2009

Introduction

• Review of recent ASAE data

• Attitude & action ideas

• Small group breakout by SPTA size

• Collect information for reporting to CESPPA list

ASAE Study – “How the Economy Has Affected Associations and

What Association CEOs Expect in the Next Year”

ASAE

Associations & the Economy Study

May, 2009

Revenue

Revenue from Membership

28.8% No Change

4.9% Increase

66.2% Decrease

Overall revenue

24.4% No Change

11.2% Increase

64.4% Decrease

Note: Findings generally consistent across type and size of organization

Areas of Revenue DeclinePercentage of respondents expecting declines in each area

78.9% Investment Income

63.2% Multiday Tradeshow/Convention

62.2% Sponsorships

55.7% Fundraising

55.4% Booth/Exhibit Sales

50.8% Advertising

Online Programs

• Only area identified by more than 20% of respondents as an area of expected revenue increase

HOWEVER:

• Online programs are not growing at expected rates• Members are less likely to report intention of using online programs• Education migration is from online to face-to-face, not other way

around

Association Response

68% Reduce Staff Travel

52% Use Reserves

51% Reduce Use of Consultants/ Vendors

42% Renegotiate Meeting Contracts

36% Modify Reserve Investment Strategy

36% Reduce Volunteer Travel

Association Response – Layoffs

70% None Expected

12% Plan to Layoff Staff

11% Have Already, Plan to Again

8% Have Already

Correlation With ASAE’s “Impact Study” of Association Members

• 91.6% of members believe their employment situation won’t worsen in coming year

• 56.9% of association members report that their employer pays all or part of their membership dues

• 43.7% of these members say they’ll drop membership if employer stops paying

Leadership in Difficult Times – Qualities

• Be visible/personally involved• Be optimistic, but grounded• Be scrupulously fair• Minimize status differences/respect the individual• Master conflict• Balance safety and risk• Be focused and adaptable• Never give up

Responses to Leadership Challenges

Implement and model:

– Strategy– Confidence– Compassion– Relationships– Truth– Communication– Decisive Action

Breakout Activity by SPTA Size

• Has your SPTA experienced revenue or membership problems related to the economy?

• What has your SPTA done to respond?

• What’s working best?

Thank You!

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