06/24/2020

Why Understanding Member Fiscal Health Is Key to Success

Comprehensive scans can be invaluable

As the economic uncertainty caused by COVID-19 (coronavirus) has unfolded in recent months, most associations have hunkered down and gone into preservation mode, assessed what they had in reserves and then decided how to best move forward. Gary Oster, founder and strategic growth strategist at Topline Growth Partners, recommends one more key item: a comprehensive scan to assess the fiscal health of an association’s top members, sponsors, and strategic partners.

Business Intelligence
Association CEOs and senior leaders, Oster said, need to recognize they are nonprofits, but they are still running a business. He said a lot of leaders forget that they need enough money coming in to cover expenses so they can do the work their members want them to do.

Oster estimates that because of the current economic downturn, 90 percent of associations have eliminated a portion of their value proposition for their members. And they probably lost 20 to 30 percent of their revenue at the same time—largely, Oster speculates, because they did not understand their members’ fiscal health.

Please select this link to read the complete article from Associations Now.