Update on the Economic Impact of Associations Association Forum of Chicagoland May 2009

Agenda Introductions Economic Impact Study Results ASAE Study Results Nonprofit Finance Fund Study How associations are responding Other ideas you can implement today Your turn…

Introductions

Economic Impact Study Results

ASAE Study Results

Nonprofit Finance Fund Study

How associations are responding

Other ideas you can implement today

Your turn…

Facts Officially, the recession began in Dec. 2007 The Dow Jones Industrial Average lost 35% of its value in the past 12 months Unemployment grew to 8.9% in April 2009 with men at 9.4% and African Americans at 15% Real gross domestic product had its sharpest decline in 26 years

Officially, the recession began in Dec. 2007

The Dow Jones Industrial Average lost 35% of its value in the past 12 months

Unemployment grew to 8.9% in April 2009 with men at 9.4% and African Americans at 15%

Real gross domestic product had its sharpest decline in 26 years

Economic Impact on Associations Study Nearly 300 association executives participated 86% were director level or above

Nearly 300 association executives participated

86% were director level or above

Economic Impact on Associations Study Top areas of responsibility Membership: 61% Marketing: 50% Executive management: 34% Communications: 30% Budget size < $5 million: 43% $5 - $9.9 million: 17% $10 - $19 million: 17% $20 - $49 million: 14% More than $50 million: 9%

Top areas of responsibility

Membership: 61%

Marketing: 50%

Executive management: 34%

Communications: 30%

Budget size

< $5 million: 43%

$5 - $9.9 million: 17%

$10 - $19 million: 17%

$20 - $49 million: 14%

More than $50 million: 9%

What impact will the current economy have on your ability to reach your goals? 72% Somewhat negative

Top concerns in this economy Advertising and sponsorships Membership retention Annual meeting registrations Membership recruitment

Advertising and sponsorships

Membership retention

Annual meeting registrations

Membership recruitment

Effects of the economy on the association

Top priorities in 2009 Improving member retention: 50% New member acquisition: 41% Branding/Increasing awareness: 36% Developing new methods of engagement: 34% Increasing meeting attendance: 26% Improving marketing ROI: 22% Incorporating a social media strategy: 18%

Improving member retention: 50%

New member acquisition: 41%

Branding/Increasing awareness: 36%

Developing new methods of engagement: 34%

Increasing meeting attendance: 26%

Improving marketing ROI: 22%

Incorporating a social media strategy: 18%

Most effective tactics in the past Public relations Brand management Direct mail Least effective tactic in the past Online or social media

Public relations

Brand management

Direct mail

Online or social media

Budget changes… Increase Online and social media efforts Word-of-mouth efforts Decrease Direct mail Print advertising

Increase

Online and social media efforts

Word-of-mouth efforts

Decrease

Direct mail

Print advertising

Other data collected by ASAE study of associations’ members 43% are likely to drop their membership if the employer stops paying 32% will not travel as far for CE as in past years 73% believe their employment situation will remain the same Younger, low level employees are less likely to feel served by their association; only 12% strongly agree their association provides them with the tools they need Source: ASAE 2009 Impact Study

43% are likely to drop their membership if the employer stops paying

32% will not travel as far for CE as in past years

73% believe their employment situation will remain the same

Younger, low level employees are less likely to feel served by their association; only 12% strongly agree their association provides them with the tools they need

Nonprofit Finance Fund Survey 950+ nonprofit professionals Only 12% expect to operate above break-even 52% expect the recession to last two years or more 93% of lifeline organizations that provide essential services anticipate an increase in demand in 2009 39% will reduce or eliminate services 41% will reduce staff salaries Source: 2009 Study

950+ nonprofit professionals

Only 12% expect to operate above break-even

52% expect the recession to last two years or more

93% of lifeline organizations that provide essential services anticipate an increase in demand in 2009

39% will reduce or eliminate services

41% will reduce staff salaries

Pay what you can Credit Union Executive Society - Conferences Regular fee was $995, average amount paid was $863 Increased attendance No discounting – want to stay true to their brand which is being the best in the industry

Credit Union Executive Society - Conferences

Regular fee was $995, average amount paid was $863

Increased attendance

No discounting – want to stay true to their brand which is being the best in the industry

Work off your dues payment Clean Technology & Sustainable Industries Organization Offers in-kind (free) membership in exchange for contributing to the building of the CTSI clean technology community. Building value to itself and the wider community

Clean Technology & Sustainable Industries Organization

Offers in-kind (free) membership in exchange for contributing to the building of the CTSI clean technology community.

Building value to itself and the wider community

Invest in nondues revenue Ohio State Bar Association Bring in money through product development Provide the highest quality Invest in high interest and high need services Training programs Certifications

Ohio State Bar Association

Bring in money through product development

Provide the highest quality

Invest in high interest and high need services

Training programs

Certifications

Be the expert on economy-related issues Association of Research Libraries The Global Economic Crisis and Its Effect on Publishing and Library Subscriptions National Automobile Dealers Association Helping to restore wholesale and retail credit/timeline showing efforts on members’ behalf California State Association of Counties Detailed chart of grant opportunities in stimulus Association of National Advertisers 10-part online vlog (video blog) on recession marketing Twitter 101

Association of Research Libraries

The Global Economic Crisis and Its Effect on Publishing and Library Subscriptions

National Automobile Dealers Association

Helping to restore wholesale and retail credit/timeline showing efforts on members’ behalf

California State Association of Counties

Detailed chart of grant opportunities in stimulus

Association of National Advertisers

10-part online vlog (video blog) on recession marketing

Twitter 101

Provide helpful resources to face the crisis American Institute of Architects Job bank and career assistance RFP Database Resources to help find new business Practice management resources Webcasts on various economy-related topics

American Institute of Architects

Job bank and career assistance

RFP Database

Resources to help find new business

Practice management resources

Webcasts on various economy-related topics

Highlight competitive advantages Association Forum of Chicagoland Annual Meeting Promote that it is local – no air fare or other travel related expenses Relevant topics for today’s changing economic climate Create a network you can use locally

Association Forum of Chicagoland Annual Meeting

Promote that it is local – no air fare or other travel related expenses

Relevant topics for today’s changing economic climate

Create a network you can use locally

Increase efforts to recruit new members Society of Human Resource Management Provide market specific job training Promote community – not feeling alone. Society of Manufacturing Engineers Aggressive marketing campaign around Survive and Thrive Promoting how they are helping current members excel in their job (resources and case studies)

Society of Human Resource Management

Provide market specific job training

Promote community – not feeling alone.

Society of Manufacturing Engineers

Aggressive marketing campaign around Survive and Thrive

Promoting how they are helping current members excel in their job (resources and case studies)

Improve your ROI Survey members to find out… Interest and satisfaction Gaps in resources How much they trust information from a variety of resources both online and offline People, Objectives, Strategies then Technology Learn how members currently interact, connect and communicate Determine your objectives Create strategies to meet objectives Finally, select the technology

Survey members to find out…

Interest and satisfaction

Gaps in resources

How much they trust information from a variety of resources both online and offline

People, Objectives, Strategies then Technology

Learn how members currently interact, connect and communicate

Determine your objectives

Create strategies to meet objectives

Finally, select the technology

Your ideas…

Participate in the Mid-year Economic Impact Survey http://tinyurl.com/mcksurv

http://tinyurl.com/mcksurv