Did you know Association Management Companies (AMCs) have been around for over 100 years, TMG for 28 of them.
We have known that the AMC model makes great business sense for not for profit organizations given the breadth of our expertise and access to resources. We also suspected that there was a bigger story on the financial success of our model to association clients as well. Today, we finally have the data to prove it.
The Association Management Company Institute (AMCI), the trade association for AMCs commissioned an independent study of randomly selected 990s for stand- alone and AMC managed associations and the findings were frankly, startling. Key findings from the study indicate that, on average, AMC-managed associations experience more than three times the growth in net assets and 31 percent more growth in net revenue regardless of size and tax status.
“Given the wide variety of associations surveyed, and the random sampling applied, the findings are remarkably consistent,” said Gaskin, a professor of information systems at Brigham Young University. “When we analyzed the data, it was clear that associations of all types and sizes using the AMC model tend to be the strongest financially.”
Additional findings indicated that, on average, AMC-run associations have:
Less liabilities as a percent of revenue
Lower expenses as a percent of revenue
Higher surpluses as a percent of revenue
That’s compelling data! It shows that AMCs provide value in every way to our not for profit clients! Check out the full report here.