Today's Economy: How an AMC Can Help Your Nonprofit

How many times do we have to hear the phrase, “these tough economic times?” If you’re like me, you might be getting a little tired of hearing that phrase in countless conversations or reading it in countless articles. Yes, our country is going through a rough period right now but we will overcome this. In the meantime, you may be grappling with how your nonprofits are going to survive (let alone thrive) under these conditions. One answer is: outsource.

As nonprofit associations contend with budget cuts, staff reductions and volunteer shortages, outsourcing your group’s needs to a professional management company can be a very beneficial move.  According to Associations Now, “Whether large or small, associations are outsourcing to specialists the work formerly produced in house.  Association Management Companies (AMCs) are undeniably the leading outsourcing solution for the industry.”

WHAT IS AN AMC?

While some associations hire staff to run the organization, others hire an Association Management Company (AMC) to handle operations. AMCs are for-profit businesses that provide professional management and administrative services to associations. The AMC provides a centralized office that serves as the client headquarters. Any overhead costs are then shared between the AMC's various clients, increasing each association's resources and capabilities without major capital investment.  Source: AMC Institute

WHY OUTSOURCE?

It’s Cost Effective - If your association is cutting back due to the economy, hiring more employees to manage your programs and events is not an option. However, your organization still needs to be effective and run properly in order to survive and volunteers can’t do it all! That’s where AMCs come in. For example, let’s say your nonprofit has a major event to plan. If your group can’t afford a full-time employee to coordinate your events and meetings or your existing employees are either overextended or inexperienced in event planning, a qualified AMC can coordinate your event on either a one-time or ongoing basis. This is how it benefits you:

1. If you outsource to an AMC to coordinate your events in lieu of hiring an employee, you will have reduced overhead costs. 
2. If you outsource to an AMC to coordinate your events in lieu of giving the responsibility to an overextended or inexperienced existing employee, you will have the confidence of knowing that your event is in the hands of a capable, experience team of people who are trained in producing flawless events for nonprofits.

Membership Retention – With today's economy, many dues paying members of organizations are now canceling their memberships and becoming more selective about which organizations they want to remain active with. As a result, this makes keeping your dues paying members happy and engaged more important than ever in ensuring the stability and growth of your nonprofit. If you’ve had to eliminate some of your employees, are your events and programs beginning to suffer due to a lack of staff support? If your programs and communications are not up to par, you run the risk of losing members. A qualified AMC has expertise in producing quality programs and communications to help maintain your members’ attention and involvement.  This will also help you stand out among other organizations.

One Stop Shop - Qualified AMCs like Projects Unlimited offer a full range of services that can help a nonprofit run smoothly. From creative services to financial management to event planning, an AMC can be the one source for everything you need. You’ll no longer have to go to several different vendors and have multiple points of contact. This will save you time which, in turn, will save you money.  And, allow you to focus on higher level items such as fundraising, relationship building and governance. 

PUI CASE STUDY – BIRMINGHAM URBAN LEAGUE

Elaine Jackson, the CEO of the Birmingham Urban League, wanted to have an event to commemorate the League’s 40th anniversary. With only 3 months to plan and a staff that was busy with its own workload, she came to Projects Unlimited for help. She had a vision for the event, but she needed help with all of the logistics of the event from the planning to the execution. That’s where PUI came in. 

We were her “guns for hire.” We handled all of the logistics of planning the event so she could focus on one key component – fundraising. While we worked with the venue, vendors, entertainment, decorators and so on, she was freed up to dedicate most of her energy on sponsor development.

In the end, together with the CEO, we produced an event that the board of directors and the community-at-large was proud of. Equally, she was able to raise more than $70,000 in unrestricted cash for the Birmingham Urban League.  
 
If you are considering outsourcing, consider enlisting the services of Projects Unlimited. We have membership and organizational development systems that will optimize your governance structure, marketing outreach and general operations. More importantly, we offer your organization’s leadership the competence, continuity and confidence they crave.

Cherie Fields
Projects Unlimited
Birmingham, Alabama

“Handle This” is a quarterly article published by Projects Unlimited, Inc in Birmingham, Alabama for nonprofit and association board members and key volunteers.  Articles published here seek to expand the worldview of volunteer leaders that impact the organizations, communities and professions they serve.

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