There are three vital elements that will keep your organization running with efficiency and longevity. Any derivation from these elements will lead your organization to fold and or severely falter. It’s that plain and simple. These are things that every association executive and every association board member should be accounting for on a daily basis. Of course there are sub-categories in each of these elements that we can further explore but the general goal is to key on…
Membership, Operations and Benefits (MOB)
- MEMBERSHIP
Many people view this as a dual responsibility that works in unison. The two most popular terms in membership are recruitment and retention. These numbers need to be studied, researched and approached in a scientific and systematic fashion. For you number hounds, there is actually a bad thing as chasing bad members.
BAD / GOOD RECRUIT
Let’s assume your membership fee is $500 annually. The member you are looking for is someone who will spend time and money perpetually. If you have a solid potential member, he/she will stick with you for at least 10 years. In addition to their membership fee, they will also attend events and functions. This should double their member income for the year. Thus this kind of member is worth conservatively $10,000 in a ten year cycle. Not to mention the hours of potential volunteering they may end up donating to your organization.
The bad recruit joins the organization because you really pestered them. They have lukewarm interest and after writing an initial $500 check, they realize there is no value to them. The following year they cancel their membership citing “They don’t have the time. That’s membership speak for “I don’t see the value.”
You be the judge, will you be chasing the Good Recruit or Bad Recruit? This principal also goes for renewals. Here is an example of a good renewal versus bad renewal.
BAD RENEWAL
Member “X” has outstanding dues notices, constantly complains about association procedures but won’t sign up for any committees to change these concerning procedures. You spend time collecting their long list of receivables. If you look deep enough, you may realize that member is actually costing your organization more than they are bringing in.
GOOD RENEWAL
Long-time member who may be in arrears for the first time. Still participates in programs and events. Expresses his/her value in the association. Dues over-looked on their part.
There is one simple and one complex thing we can learn from membership.
Renewals + Recruitments – drops = net gain.
Renewals + Recruitments = net loss (but still can be a net gain). Get it? Got It? Good.
OPERATIONS
This comes down to good paid leadership, superior volunteer leadership and responsible spending. Monetary solvency is king. Although it’s not in the association model DNA to be consistently solvent, it is still a business, bills need to be paid and having rainy day money is encouraged. Every association should aim for a surplus budget. The amount varies on your operations but it’s always best to plan on 15% each year. If your operating budget is $500,000 annually, count on having $75,000 at the end of the year. Slip that into an interest bearing account, let it ride and use only if needed.
The overall theme of operations can go in many directions but the money is the bottom-line. Fiscal responsibility, being a steward of the associations overall financial future is paramount. This trickles down too good record-keeping (Hello Quickbooks) and a set of by-laws / policies that are in line with the message of the association principles. These can be put together with volunteer leaders and hard-working taskforces.
Lastly is setting expectations between board and staff. In many associations, there is a rift. It usually begins with a member who is frustrated in their own work and feels that the association staff has a much easier job. In fairness it also stems from jaded association staff that takes membership for granted. This creates a big disconnect that makes many association events uncomfortable and awkward. Strategy sessions, retreats and easy communicative devices will be essential in tempering these potential breakdowns in operation. Please see my past post in “Bonding With Your Board.”
BENEFITS
In the bible of association management, also known as “The Race for Relevance,” the authors lay out a very simple perception of associations today. In the 1950’s to 1970’s, associations were viewed as a necessity. Very few people thought about benefits. It was just a rite of passage to pay dues. If you were an accountant, you join your professional organization, construction workers, officers of the law, engineers, doctors, etc. You didn’t ask questions or favors, you just did it. Today, members are asking for more. As a metaphor, we can talk cars. It’s nice to have 4 wheels but now people want a moon roof, spoiler, blue-tooth, heated seats, keyless startup. Associations are similar. Just being a part of it is not enough to satisfy an annual dues payment.
People want stuff but don’t want clutter. Make the programs valuable. If its and education course, make it relevant and useful. If its health insurance, make it simple and cheap. If it’s a newsletter, make it concise and easy to read. Every association will need to find their benefits package but we are facing the same reality…needy members who want more for less.
If you keep the MOB Mentality in mind then you will find that your association will stay above the fray and continue with its sincere commitment to its members.