8 Trends Affecting. Connecting Great Ideas and Great People. Tuesday, May Chief Financial Officers Affinity Group Meeting
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1 8 Trends Affecting Associations Tuesday, May Chief Financial Officers Affinity Group Meeting Scott Briscoe, CAE Editor-in-Chief, New & Social Media ASAE & The Center for Association Leadership Connecting Great Ideas and Great People
2 Trend #1: Less Reliance on Dues Income
3 Trend #1: Less Reliance on Dues Income Focus On You Dues Revenue as a Percent of Total % 52.3% 40.9% 37.7% Source: ASAE, Operating Ratio Report, 13 th Ed.
4 Trend #1: Less Reliance on Dues Income 2010 Expectations, Overall Revenue 2010 Expectations, Membership Revenue Source: ASAE, Associations & The Economy Study, Winter 2010
5 Trend #1: Less Reliance on Dues Income Focus On You Where Will Increases Come From? 33% Large Conference 32% Investment Income 27% Sponsorship 19% Advertising Source: ASAE, Associations & The Economy Study, Winter 2010
6 Trend #2: Online Learning The Big Hope Falls Flat
7 Trend #2: Online Learning Source: ASAE, Associations & The Economy Study, Winter 2010
8 Trend #3: Economy Drives Personnel Management Changes
9 Trend #3: Personnel Management Focus On You Likely Actions Taken in % 46% Reduced travel, training or other expenses Froze salaries for officers or any other employee group 39% Eliminated or postponed bonuses 39% Laid off staff 31% Reduced amount contributed to health premiums Source: ASAE, Associations & The Economy Study, Winter 2010
10 Trend #3: Personnel Management Focus On You Less Likely Actions Taken in % Terminated contract employees 15% Temporary hiring freeze 15% Eliminated or reduced 401(k) match 15% Eliminated other benefits 0% Furlough Source: ASAE, Associations & The Economy Study, Winter 2010
11 Trend #3: Personnel Management Focus On You Expected Actions in 2010 not likely maybe likely Freeze salaries Reduced travel 3.0 Eliminate bonuses 2.9 Health premiums 2.7 Lay off staff 2.3 Terminate contract employees Source: ASAE, Associations & The Economy Study, Winter 2010
12 Trend #4: How Consumers Are Changing
13 Trend #4: Consumer Behavior The era of conspicuous consumption is over. Saving money by cutting out waste of all kinds will be the priority. I don't see this as being a short-term response to the recession but a fundamental shift that will see the emergence of a new breed of customer. Andy Bond CEO of Asda (the second-largest retailer in the U.K.)
14 Trend #4: Consumer Behavior The shopping behavior data coupled with the demographic trends suggest that an enduring shift has taken place as a result of the Great Recession. Going forward, purchases will be more deliberate and purposeful. Conspicuous consumption will give way to more conscious or practical consumerism. Rampant deal-seeking will be replaced by more purchase selectivity and the use of shopping techniques and tools discovered during the recession. The New Consumer Behavior Paradigm: Permanent or Fleeting? Study by PriceWaterhouseCoopers & Kantar Retail March 2010
15 Trend #5: What Volunteers Want
16 Trend #5: What Volunteers Want Why Don t You Volunteer? I do not have enough information about 39% vol. opportunities I volunteer elsewhere 35% They never asked me 29% Not enough opportunities 1.5% I m not interested in volunteering for them 12% Volunteering for them would not make a difference 5% Source: ASAE, The Decision to Volunteer
17 Trend #5: What Volunteers Want Focus On You I Would Volunteer If not likely maybe likely I knew the volunteer opportunity was meaningful or made a difference in people s lives. Source: ASAE, The Decision to Volunteer
18 Trend #6: Compensation & Benefits
19 Trend #6: Compensation & Benefits CFO compensation by type Type All $136,092 $128,578 Healthcare/Medical Other $147,947 $110,815 Social Welfare/Civic Affairs $111,999 $104,585 Energy/Utilities $161,000 $150,806 Agriculture $101,680 $96,990 Source: ASAE, Association Compensation & Benefits Study
20 Trend #6: Compensation & Benefits CFO compensation by organization size Type All $136,092 $128,578 $1 - $2.5 million $78,574 $74,471 $2.5 - $5 million $96,388 $95,307 $5 - $10 million $122,413 $118,954 $10 - $15 million $135,088 $122,583 $15 - $25 million $160,623 $147,339 $25+ million $189,389 $181,133 Source: ASAE, Association Compensation & Benefits Study
21 Trend #6: Compensation & Benefits Staff Benefits Bonus pay 66% Professional membership dues 57% Reimburse for certification costs 50% Handheld device monthly fee 42% Local transportaion subsidy 16% Financial planning services 9% Low- or no-interest loan 3% Source: ASAE, Association Compensation & Benefits Study
22 Trend #7: Transparency
23
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25 Trend #7: Transparency Transparency in decision making How and why decisions are made Are video or audio recordings of board meetings a bad idea? Governance selection process How open is the board selection process?
26 Trend #8: Why People Give to Associations
27 Trend #8: Why People Give Focus On You Reasons Donors Give to Associations not likely maybe likely Support student entry into field 3.4 Support research 3.4 For cause related to mission 3.2 For special project 3 For related charity 3 Increase awareness of profession 3 Support legislative advocacy 2.8 Support special event 2.2 For building fund 1.8 Want to volunteer in position where donations are expected Source: ASAE, Decision to Give
28 Additional Resources Economy Studies: Benchmarking Studies: Decision To series Presenter Scott Briscoe, CAE Editor-in-Chief, New & Social Media ASAE & The Center for Association Leadership
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