What is an Association Management Company?

Association Management Companies (AMCs) are strategic partners for membership-based associations that are led by a volunteer Board of Directors. The AMC employs specialized staff to provide strategic, governance, operational, membership, event management, marketing, and financial services for the association.

An AMC typically replaces the function of a traditional Executive Director. That means that an AMC is responsible for ensuring membership growth and retention, creation and achievement of a strategic plan, delivering successful events, ensuring good board governance, and revenue diversification and growth.

What types of organizations partner with AMCs?

AMCs partner with membership-based, volunteer-led associations that typically fall into one of three categories:

• Professional associations and societies: Individuals of a common profession

• Trade associations: Companies in a particular sector

• Foundations: Charitable entity of an association

Why do those organizations partner with AMCs?

Association Board Members are experts in their industry who donate their time and energy to participate in the association. Their main priority is to ensure the association is fulfilling its mission and providing true benefit to its members. These volunteer leaders have a term limit, which means the association membership elects new Board Members each year (or within a set number of years). This causes frequent turnover and need for retraining as each new Board Member is onboarded.

Hiring an AMC allows Board Members to concentrate on advancing the goals of their association and leaves day-to-day operations (and more) in the hands of experts. The AMC also helps ensure the association continues to function smoothly even as new Board Members are elected and onboarded.

Partnering with an AMC also saves money. For some associations, it can be difficult to justify the cost of hiring full-time staff members to provide the support necessary to keep them operating effectively.

An AMC like Impact AMC works to adjust its scope of services so associations can pay for what they need and not for what they don’t. This eliminates overhead costs for services they aren’t using and allows them to see a greater return on their investment. If the association grows, Impact can grow with them; and if the association needs more assistance during a busy time of year, Impact is ready to help. Not to mention, it takes the cost of hiring employees off of their plate (i.e. recruiting, hiring, training, taxes, professional development, and more).

How do organizations find the right AMC for their needs?

AMCs are true partners in association management and take a very involved role in the operations, strategy, development, and overall success of the associations they work with. That is why it is critical to find an AMC that is the right fit for your association’s unique needs. When selecting an AMC, consider:

• Is the AMC accredited by AMC Institute (ACMI)? AMC Institute Accreditation is based on the ANSI Standard of Good Practices for the AMC Industry and requires association management firms demonstrate adherence to operational and ethical best practices. Among 500-plus AMCs worldwide, only 81 have achieved AMCI Accreditation.

• What is the AMC’s culture? Understanding the AMC’s values, mission, and expectations for their team will help you understand what to expect from your partnership with them. For example, Impact AMC values communication, trust, and teamwork. We establish strong working relationships with the associations we partner with, which in turn allows us to provide guidance, act as problem solvers, and ensure the success of each association.

• What will my AMC support team look like? Most AMCs will dedicate a team of professionals to work with your association. Consider how many people that will include and what roles they will play for your association. Will the AMC’s leadership team provide additional oversight and support to ensure quality service and progress on identified goals?

• Does experience in our specific industry matter when selecting an AMC? Partnering with an AMC that has experience within your association’s industry sector or area of focus can be an asset. However, partnering with an AMC that is new to your industry can bring a fresh perspective. Many of Impact AMC’s best success stories have come from partnering with associations in unfamiliar industries. Our team of association professionals brought a fresh set of eyes to the association’s practices and identified opportunities for improvement and advancement that were otherwise overlooked.

• What if we already have an in-house Executive Director? It’s not uncommon for an AMC like Impact AMC to partner with associations who also employ full-time staff such as an Executive Director (a.k.a. a hybrid model). There are a number of reasons why this is a great solution for associations:

  • The hybrid model allows associations to maintain control over certain core functions while outsourcing others functions to the AMC. This flexibility can be beneficial in scaling operations up or down based on current needs or financial constraints.

  • Full-time association employees can provide valuable industry experience, while a dedicated team of AMC staff members provide expertise and experience navigating the unique challenges and opportunities that associations face, like membership growth, event management, technology, financial management, and governance.

  • AMCs often work with multiple associations across different industries, allowing them to bring in best practices, benchmarking data, and networking opportunities that can benefit the association.

  • AMCs allow for continuity—if a staff member resigns, retires, or leaves unexpectedly, especially a key staff member like an Executive Director, the AMC staff is able to maintain continuity and historical knowledge.

Is Impact AMC a good fit for my organization?

Let’s find out! We love supporting membership organizations and can't wait to hear more about what you're looking for. Complete a Request for Proposal form and we will get back to you as quickly as possible with more information about how we can support your unique needs.