Acronym

ASAE & The Center just released its latest economic study, this one features results of a survey that generated 960 responses, each from a different association, conducted earlier this year. The survey form duplicated the questions asked in the Spring of 2009, providing a nice comparison and benchmarking tool. A few of the things that interested me:

• It's interesting that in a lot of areas in 2009, execs thought the economic climate would have a worse affect than it actually did have. These areas include sponsorship, fundraising, and annual meeting-type events.
• Where execs were most wrong, though, was predicted in the first economic study we did after the economy soured in early 2009, when we got responses from 8,500 members of 97 diverse associations. The data from that study suggested that there would not be a mass movement from face-to-face meetings to online events. This was contrary to the expectations of association execs, 61% of whom were expecting revenue from online education to increase. In actuality, only 33% reported in 2010 that such revenue had increased.
• There's a striking dichotomy in the 2010 data: 62% of execs think overall revenue will stay the same or increase in the next 12 months. However, only 48 % think revenue from membership will stay the same or increase. It's worth watching if execs think there is a fundamental shift away from membership as a revenue stream.

I'm not even sure I agree with this post, but I'll throw it out there and see if it sticks.

When talking economics or markets, everyone thinks bubbles are bad. It's hard to argue that here on this side of the summer of 2008. But go back to early 2008 or 2007 when personal and organizational wealth was expanding, and the bubble doesn't look so bad (setting aside for a moment that we all foolishly didn't think we were in a bubble). I don't know the numbers, but let's say that 50% of those in subprime mortgages have not and are not in danger of defaulting—the bubble worked pretty good for them, enabling them to obtain a mortgage that they may not have been able to get without a bubble.

But I guess the general consensus is that a striaght line, rising slowly but steadily, would be much preferred to the up and down rough and tumble that actually exists.

So here's my half-baked theory: One overly simplistic definition of a bubble is an increase in mass consumption of risk that reaches a point where risk becomes too great, an event happens, and then there is widespread retreat from risk.

I think in general, associations try to run like that straight line--willing only to take the risks necessary for slow, steady growth. As a result, I think our organizations never realize the full benefits of a bubble. But when it pops, we feel just as much pain as the rest of the world.

If the rest of the world suddenly acted like that straight line, then maybe our measured approach to risk would be ok. But let's face it, when times are good, we always think we've found our straight line, but going back at least several hundred years, that hasn't been the case. As a result, I think, we need to take on more of a bubble mentality. We need to push risky endeavors. Some will fail, and it will hurt. Some will succeed, probably better than they should. And the rest will be somewhere in the middle. I understand it's a yo-yo that might be distasteful, and would require associations to be more flexible in organization and more efficient in decision making than they are. But if the bubble are going to come, then we've got to find a way to get more benefit out of them before they pop.

The Halloween candy hasn’t even been eaten yet, and I’m already seeing what I think will be a tidal wave of holiday-season community service outreach and philanthropic activities by a wide range of associations and nonprofits. In the spirit of the upcoming season and because everyone likes to know what their colleagues are up to, I’m going to make an effort to post occasional short lists with links to more details of some of the most creative or highest impact projects and partnerships.

For now, I’ll just share what one nonprofit is doing to address a fundraising issue that becomes especially crucial during the end-of-year giving cycle—enabling trusted, simple, and convenient donations directly from mobile phones. The Mobile Giving Foundation (MGF) has just announced a partnership with major mobile providers such as Verizon Wireless and AT&T to assist 350-plus charities with mobile giving campaigns. The program has generated more than $1 million in 18 months and is expected to grow rapidly, according to the foundation. A Canadian version of the initiative also has launched.

The foundation also has gone the next step: developing a broader partnership strategy to create a "mobile giving channel, whereby consumers can text a keyword that corresponds to a specific nonprofit or charitable cause to a designated short code. Afterward, a micro-donation of $5 or $10 is made and processed.” The wireless service companies tally donations via their regular monthly billing process and forward the funds to MGF, which passes 100% of them to the designated charities.

MGF has worked with almost every U.S. and Canadian wireless service provider to design “clear standards” that “provide a quality user experience and a trusted source of donor engagement for nonprofits." That experience includes offering donors various “information opt-in-based text alert packages … to help the donor maintain visibility to the causes they support.”

Thanks to a process redesign and technology innovations that dramatically accelerated campaign launch processes, the foundation now launches 20 campaigns per week and is currently supporting more than 400 campaigns with price points of either $5 or $10.

Response rates vary wildly from 1.5% to 63%, depending on “the cause, celebrity endorsement, co-branding affiliations, and related marketing efforts,” says the foundation.

Here’s a list of current charity partners and the Standards for Participation in case your organization would like to participate.

Whoa—just when you think you’ve heard of almost every type of fundraiser in the world, something comes along that gives you pause. This time it’s by a youth service nonprofit called World Youth Empowerment, which has created what it calls a “Mega House Raffle.” Winner of its grand prize can select “any property for sale within the state of California up to a value of $3 million.” Oh, and it includes $200,000 in furnishings and a new Bentley Continental GT car.

“But what about gift taxes?” you might sigh. Nada. The prize is tax-free, resulting in a total prize package worth more than $4 million. No need for a West Coast home? Take $2 mil instead. Yeah, that’s what makes this raffle fundraiser the largest in America to date, according to WYE. And just to keep it more exciting, only 60,000 tickets at $150 each will be sold, starting October 15.

According to WYE Executive Director Charlie Smith, the poor economy with its deep funding cuts in the public sector and drop in private giving is forcing nonprofits to seek “non-traditional means of fundraising. We chose a charitable raffle, but needed to make it large, unique and exceptional to distinguish it from other raffles. With valuable assistance from our private benefactors, we created the Mega House Raffle that certainly qualifies in all respects." He hopes to raise $9 million from ticket sales.

The prize drawing is on March 22, 2010, but WYE is giving away hundreds of smaller prizes in 16 early-bird drawings. I’ll be interested to hear whether Smith meets his fundraising goal, but in the meantime, I’d also like to hear what other out-there types of fundraising is going on in the nonprofit community. Any original twists on long-time favorites such as auctions, raffles, cause marketing, events, whatever?

I’m reading a lot of anxious press releases and articles within the association/nonprofit communities about boosting participation in the U.S. 2010 census process, as fiscally stressed organizations unite to battle perception hurdles that could depress census tallies and lead to fewer federal funds for states and their social programs. Currently, the federal government distributes almost $400 billion annually to states and localities.

In Illinois, for instance, an alliance of 60 nonprofits and 10 state foundations has formed the nation’s largest response to date--a $1.2-million “Count Me In” campaign to improve participation in the tallies of often-missed populations, such as immigrants, minorities, and low-income residents. The coalition has determined that for each person not counted in Illinois, the state loses $12,000 during the next decade.

Organizers are using a wide variety of new and traditional engagement and education tools to convince people to complete their census document. Among them are celebrity text messages for Latino youth, door-knocking brigades to immigrant communities, social media strategies, special events, and outreach materials for churches, barber shops, and beauty salons in heavily African-American neighborhoods.

If you’re interested in learning more about or joining the efforts, go to the U.S. Census Bureau site for National Partners; you can also find a massive list of associations and nonprofits already signed up (PDF).

Despite two phone calls from newly laid off association professionals this morning, I’m encouraged to read that the nonprofit Families and Work Institute’s free, downloadable 2009 Guide to Bold New Ideas for Making Work Work concludes that 81% of U.S. employers are maintaining and 13% are increasing the work flexibility they offer employees. Only 6% acknowledge reduced flexibility.

"In fact, many report they are using flexibility as a tool to manage through the recession," according to FWI.

How? You’ll find an easy-to-search summary of 260 of the creative programs and policies of 260 employers organized by geography, industry, and innovative practice—each of whom a 2008 Alfred P. Sloan Award for Business Excellence in Workplace Flexibility.

Aside from a steady expansion of telecommuting-telework programs to help employees reduce commuting costs, other recession-friendly practices are

- Giving employees four Fridays off in the summer in lieu of raises the organization cannot afford
- Creating funds to support their own employees or others in the community who are suffering during the recession
- Giving employees the option to take unlimited, unpaid personal time off during the downturn, while keeping full medical benefits and the right to return to their jobs
- Allowing employees greater scheduling flexibility if their spouse has lost a job or seen their hours reduced and the family needs to make changes
- Creating flex year and flex career programs
- Creating workflow coordinators to monitor overwork and developing wellness scorecards to promote wellness

"The employers in Bold New Ideas present a roadmap to creating successful workplaces in a down economy," says Ellen Galinsky, president and co-founder of FWI and lead editor of the guide. "We hope these examples will provide ideas to employers around the country for their own programs, and help employees identify progressive organizations in their region -- or become internal advocates for change."

The new guide also shares insights from the latest annual National Study of the Changing Workforce, which includes shifting attitudes toward work and lifestyle choices. Basically, we workers continue to feel "deprived," especially of time to spend with important people in our lives. Three-fourths of responding employees say they don’t have enough time for their children--a 9% increase since 1992. Spouses don’t fare much better; 61% of workers (up 11% in 15 years) complain about the lack of time for significant others.

Thus, few would be surprised to read that 39% of employees report that flexibility is extremely or very important in their decision to accept a job or not. However, even to those currently employed, 86% rank flexibility as extremely or very important.

That is overwhelming. So why then, do only half of U.S. employees "strongly agree" that they currently have the flexibility needed to manage work and personal life successfully? Read the guide for clues and to learn more about how and whether organizations are including workers in questions around flexible workplaces.

For a moving account of the bankruptcy filing and revitalization plan of the National Child Support Enforcement Association (NCSEA), visit Meetingsnet.com’s article, “Tales from the Downturn: Meeting Cancellation Leads to Bankruptcy.” Kudos to Executive Director Colleen Eubanks for sharing tough lessons with her peers.

Joanne Fritz, who writes for the nonprofit section of About.com, expresses enthusiasm for a new book of interest to associations and nonprofits that are re-examining fundraising techniques in the new economy.

Building on Thomas Friedman’s best-selling book, The World Is Flat: A Brief History of the Twenty-First Century, author Jon Duschinsky explores the effect of such increased global connectedness on philanthropy in his new book, Philanthropy in a Flat World: Inspiration Through Globalization (Wiley, 2009). His four-step process for how nonprofits should adjust to a flatter world economy is succinctly summarized in the Fritz review.

“Nonprofits have been slow to catch on to the survival techniques of a flat world,” she writes. “Philanthropy in a Flat World is a quick read that might just help your organization transition from a 20th-century organization to one that can flourish in the 21st century.“

Friedman, by the way, is essentially crowdsourcing “Chapter 18” of his next version of The World Is Flat. You can watch the experiment in action—and even participate—on his site.

It’s one of the more difficult and unpleasant conversations you have with staff. When and how do you communicate the news?

The “when” is easy: Don’t wait until December 1st to tell staff. Keep staff informed earlier, perhaps as early as mid-summer (assuming you are on a calendar year and typically award increases at the end of each year). Nobody likes bad news dropped on them at the last minute, especially when it has to do with their paycheck. And, if there are other benefit cutbacks likely, tell them sooner rather than later.

Now, the “how” part:

1. Tell everyone at a staff meeting so everyone hears the exact same message at the same time. Be compassionate in your delivery. Acknowledge that you are sharing in the pain. No one is exempt.

2. Give yourself some “wiggle” room. You may decide to phrase the news in terms of “it is very likely that…” or “although circumstances may change, my sense is that…” It is always better to under-promise and over-deliver. Especially when it comes to salary.

3. If possible, mention other perks that will be explored as compensation. Things such as extra vacation time, free lunches, or other perks can go a long way in sustaining morale.

4. Invite staff to meet with you one-on-one after the meeting should they have further questions or want to voice individual concerns. An open door policy is critical to maintaining your role as leader.

5. End on a supportive note. Acknowledge the hard work everyone is doing. And remind folks that the economy will improve.

If there is any way to squeeze merit bonuses out of your budget in lieu of salary adjustments, make this happen. Rewarding folks based on their accomplishments, and not waiting to the end of the year to do it, helps soften the bad news, and further reinforces staff’s commitment to excellence.

Like many associations, the International Association of Fire Fighters has developed a “Surviving the Economic Crisis” Toolkit for members, and this one includes a nice, easy-to-use page summarizing news articles and links related to “cuts in state and local budgets, fire fighter staffing, health care benefits, compensation, pension plans, and other areas as a result of the downturn.” A brief archive organized by month at the bottom provides a simple way to access and identify trends.

I’ve been monitoring what appears to be a steady increase in the number, scope, and creativity of partnerships between associations/nonprofits and academia in the past five years. In some cases, the alliances aim to provide more meat and accessibility to association certifications; others want to co-brand their education programs with the prestige of universities or research institutions. Still more are trying to pilot new relationships and share both risk and resources with academics of similar mindset and goals.

While aligning with the likes of Penn State University and the University of Michigan is wonderful for some associations, I’ve seen far fewer partnerships with community colleges, despite their massive jump in popularity in recent years. After the announcement this week of President Obama’s new American Graduation Initiative, however, it may be just the right time for that to change.

The underlying goal of this $12-billion, 10-year investment is to educate, retrain, and graduate five million adults and young adults with “the skills and knowledge necessary to compete for the jobs of the future,” say Obama. Federal research has already estimated that “one-third of the fastest-growing occupations will require an associate's degree or a postsecondary vocational certificate.”

Obama’s announcement names community colleges as a primary vehicle toward accomplishing such a goal, noting the colleges “could build partnerships with businesses and the workforce investment system to create career pathways where workers can earn new credentials and promotions step-by-step, worksite education programs [that] build basic skills,” and internships and job placements that are “curriculum-coordinated.”

Couldn’t you envision how associations might help with these three areas? Professional and trade organizations know first-hand what skills and knowledge are needed to build the most successful careers within their sectors; why not offer to help shape the new curricula that must emerge? Why not offer as part of students’ coursework, or even as a graduation requirement, the new-economy-oriented professional certifications already developed (or underway) by an association? That’s what the National Association of Home Builders and Perdue University have done with NAHB’s Green Builder certification, for instance.

And couldn’t you see how associations and a community college could jointly target the largest companies in their fields to host onsite training of employees, as continuing education credit or for certification points?

And what of internships and job placements? Might associations find a new role as a clearinghouse for internships in their fields, a one-stop-shop for community college students and others seeking a foothold in the sector? A possible author of internship best practices designed to create positive learning experiences that build genuine enthusiasm in students and retrained adults for a career in that field or trade?

Finally, the new initiative also enables development of an “online skills laboratory” that relies on educational software to help “students learn more in less time than they would with traditional classroom instruction alone” and to extend “learning opportunities to rural areas or working adults who need to fit their coursework around families and jobs.” Obama envisions “open online courses … developed by teams of experts in content knowledge, pedagogy, and technology and made available for modification, adaptation, and sharing.” Government agencies, including the Departments of Defense, Education, and Labor, would work with each other and others to develop such courses and “rigorously analyze” the quality of their results as well.

Continue reading "A $12-Billion Partnership Opportunity? " »

A free downloadable workbook, “The Principles Workbook: Steering Your Board toward Good Governance and Ethical Practice,” is now available from coauthors BoardSource and Independent Sector. The publication aims to “help the nonprofit community meet its commitment to upholding the highest standards of accountability -- and do so in a cost-effective way.”

The workbook enables nonprofit boards and staff to “evaluate themselves on key principles of legal compliance and public disclosure, effective governance, and strong financial oversight and then develop action plans based on those evaluations.”

With the weakened economy, and its dampening effect on member travel, we are all looking for alternative sources of non-dues revenue. Web-based seminars (webinars) have become a ubiquitous presence on the educational front. However, the challenges of hosting value-added programming that actually make money are real.

First, you need to research compelling topics.So you survey the membership and find a few ideas. Then you need to find the speaker. You approach one of the better-known experts in your field and, happily, she agrees.

With your webinar provider already in place, you spend time training the speaker on how to administer her presentation during the actual webinar. You set a price point (deciding on per-site pricing instead of per-person, to encourage broader participation and add value). And as with live events, you spend time managing registrations (even with online credit card purchases, there are always questions) and even more time promoting, promoting, and promoting.

Two days out, you only have two people registered to attend. What went wrong? What could be done to help ensure a win-win webinar experience for associations and their members and customers?

Steve Anderson, a long-time association veteran currently leading the National Association of Chain Drug Stores, says the current economic environment is as tough as any he has seen. Associations across the spectrum are having to lead change in a crush of financial hardship and uncertainty.

As we launch into the first of several posts this month on change management, watch this short video and listen for his simple (but incredibly hard -- especially for associations) solution: at any time -- and especially tough economic times -- associations need to simplify and focus.

I know everyone is dragging around right now, even though it’s only Tuesday, but with so many folks on vacation already, and the sun shining brightly (at least here in Virginia), I thought it a good time to pass along 5 minutes of humor for your day. Yes, it has an association hook, and it’s even about the economy, so you can tell your boss you’re “doing an environmental scan.”

However, I guarantee you haven’t heard economics explained in these kinds of concepts, even though this hilarious YouTube video is by Yoram Bauman, a self-named “stand-up economist” at the American Economic Association conference in January.

Major kudos to the AEC for having the guts and grace during a dismal financial year to insert its first “humor session” at a conference, which actually garnered it a nice blog post in The New York Times and apparently standing-room-only attendance that day.

E-mail marketing has never been so popular, thanks to the weak economy and increased use of the Internet by consumers and members. What stopped me cold as I skimmed a press release about a new report from Forrester Research Inc. was the company’s prediction that “in five years, consumers will be deluged with more than 9,000 email marketing messages annually.”

More broadly, the report predicts spending on e-mail marketing will jump by almost 11% annually to $2 billion by 2014.

But gosh, am I seriously going to have to delete or respond to 9,000 e-mail pitches a year? The vision of my graying self, hips wider than a boat from camping out in my desk chair trying to empty an in-box exploding with don’t-ya-want-it e-mails, is very depressing. Life is too short.

And that’s just the receiver’s viewpoint. What about us as the senders? Many associations are already taxed with complaints from members about sending them too many e-mails. How will we compete against 8,900-odd other messages?

“By 2014, direct marketers will waste $144 million on e-mails that never reach their primary target,” says Forrester Research Vice President and Principal Analyst David Daniels. “Successful direct marketing pros will alter their tactics to overcome inbox clutter and increase relevancy.”

So there’s the challenge. It’s not a new one, but now it seems more urgent than ever. Association marketers, not to mention the entire staff, must explore new ways to showcase our products and services through memorable, persuasive language and vehicles that make clear their true value.

And it’s not a one-step process. The Forrester report also predicts that so-called “retention emails”—those that consumers have agreed to receive—“will account for more than a one-third of all marketing messages in consumers’ inboxes by 2014, representing increased competition for marketers.” That means we have to first keep ourselves on the permissions list of our people and stop annoying them with e-blasts in which they have no stake or interest.

And we have to be more assertive about training our staffs in the art of using social media as a legitimate business tool. Several recent conversations I had with members reminded me how tentative our sector can be, even about piloting something such as a conference Twitter stream, a CEO blog, or an education session held in Second Life.

According to Daniels, “The use of e-mail in social networks will be one of the biggest challenges for direct marketers. Over the next five years, marketers must bridge the gap between social and traditional inboxes with social sharing tools.”

So let’s keep the conversation flowing about how to ensure that our members keep us on their “permissions” list for our marketing materials—and then act accordingly. Ideas?

Free is an attractive word; it gets attention. But it can also be a dangerous word; one that should probably be avoided much more often than it is.

Researchers led by Michael A. Kamins (Stony Brook University-SUNY), recently published an academic article on the effects of bundling products together and calling one of them free. (You can access a press release or purchase the article here.) The basic findings: consumers devalue anything that is labeled free. They found that if you bundled two products together without using the word "free," then any devaluation is significantly less.

Something to think about as associations bundle products and services together as a revenue-generating tactic in a tough a economy.

As we gaze into the tea leaves to see when this “Great Recession” is going to fade into history, you might find yourself wishing, as I do on occasion, that time pass by more quickly so that we can get this disagreeable period behind us sooner rather than later…..

But before we push the “fast forward” button maybe we should reflect a little on what we might be missing by leapfrogging the next six months or twelve or eighteen months—depending on which economist you are listening to.

What I have found in my own firm as well as with many of the clients we are helping these days, is that this recession has stripped away veneers that had been comfortably hiding certain structural and strategic weaknesses that could once be ignored but now can’t. These weaknesses in fact are the real sources of our pain and need to be corrected—why wait, why not now? Once we have staunched the bleeding the best we can, perhaps a useful investment of time is to examine how these once ignored weaknesses can be addressed so that we emerge from this trial stronger for having undergone it.

I know, I know, this is easier to say than to do. It is like building a plane while flying it. So, is there anything easier to do? Well maybe.

The principal strength of the nonprofit community is its rootedness in issues and purposes that are intended to better society as a whole. Look around; society’s needs are crying out. If organizations that were created to help better society cannot now rise to the occasion when there is so much need, then who can? It seems to me that now more than ever could be the time for the nonprofit community to shine. This may mean looking at your mission in a new way…aiming higher, thinking differently and coming up with strategies and programs that make a difference for society and for yourselves.

Well, what are you waiting for?

It took three weeks for the newly confirmed Assistant Attorney General for the Antitrust Division Christine Varney to note a major federal policy shift. In remarks on Monday and Tuesday, she left little doubt that the Obama Administration will actively pursue possible antitrust violations. As if right on cue, the European Union on Tuesday smacked Intel with a record antitrust fine, all of which presents the perfect opportunity for associations to take a look at their own antitrust risks and practices. I talked with Pillsbury Winthrop Shaw Pittman attorney Jeff Glassie about what this means for associations.

"I think you have to look at the new assistant district attorney's remarks and you have to look at the consent order the FTC issued to settle charges against the National Association of Music Manufacturers issued in March as evidence of how this administration is going to focus on antitrust issues," says Glassie.

The NAMM case is notable because there was not an allegation of an anticompetitive agreement being reached by means of NAMM, only that NAMM facilitated an exchange of information. Agreements can be per se antitrust violations, information exchanges by themselves are not. Still, the FTC pursued NAMM because it said the way they actively sought to exchange information could lead to anticompetitive practices. (Read the FTC's take.)

Varney's remarks, on the other hand, were aimed more at monopolisitic parts of antitrust law, which are not an area where associations face a great deal of risk. Still, Glassie warns that her remarks are not insignificant to associations.

In a poor economy, there might be some expectation of deference to business to ensure that they remain or regain profitability and avoid bankruptcy or closure. But "she pretty clearly laid out that protecting consumer welfare cannot take a backseat in a challenging economy," he says. "She didn't use the word 'associations,' but she did say that there is no adequate substitute for a competitive market, particularly in times of economic stress. In terms of antitrust enforcement, the administration has signaled it intends to play a vigorous roles, which is a sharp contrast to the last eight years."

So what should associations do about it?

First, "Don't look at this as some kind of black cloud," says Glassie. "When I make presentations to associations on antitrust, I'm sure to say that our country is founded on a free market system. What keeps it a free market and not one subject to collusion or to the dominance of a very few, very large players, is antitrust law."

As for due diligence, this is what Glassie recommends:

- Dust off the antitrust policy and make sure that it's updated and applied. It should be part of board books and any relevant committee meetings as part of the agenda and minutes.

- Be especially diligent that any surveys or research on prices, fees, salaries, or other sensitive areas are performed and released appropriately. (See Statement 5 in "Statements of Antitrust Enforcement Policy in Health Care.")

Plenty of conversation is occurring about how to add value to association memberships, with much discussion focusing on delivering more knowledge and further developing members’ skills.

One added benefit I like was announced recently by the Web Analytics Association. Its Research Committee has arranged access to four online peer-reviewed journals that may interest its members. To “bridge the gap between industry research and the research conducted within the academic communities,” a project team of the committee reviews and summarizes selected articles to keep WAA members apprised of the latest research and offers an archive of issues as well. The committee also is recruiting members to write reviews.

This example reflects aspects of chatter I’ve heard lately about the need for associations to “get over” their “territorial attitudes” regarding their publications and instead focus on finding and delivering access to the best range of knowledge for their respective professions or trades—and that may mean outside of the hallowed halls of the association. Indeed, it may mean reaching out to peripheral organizations that aren’t a perfect match to all members but may hold attractive information to members involved or interested in cross-disciplinary knowledge exchanges.

A more open attitude also may prompt more association journal/magazine exchanges and wider tapping of for-profit publications and knowledge products.

Frankly, associations aren’t always good at that type of strategy, but if we want to retain the value of our reputations as comprehensive repositories and leaders in relevant knowledge delivery, then we need to re-examine what types of knowledge our members truly need in this changing economy—and whether we have to be the ones to create it from scratch.

Many of you know about ASAE & The Center's public awareness campaign, "The Power of A." (If not, see the release and the website.)

What I'm curious to hear from Acronym readers is -- how important do you think public awareness of the association community really is? While it's part of our core cause, it's never ranked particularly high in importance by ASAE & The Center members in our assessment surveys. At a recent session devoted to teaching young association professionals how to enhance their networking skills, one of the tactics offered was not even referring to the association part in introductory conversations. Rather, talk about the mission of your organization, particularly if you can relate it in some way to something that affects your new contact directly.

Internally, we routinely have conversations that at least touch on whether or not the size and scope of association management rises to the level of being a profession. Certainly the CAE puts a professional stamp on it, as do the many dedicated people in the field. But there's preciously little in the way of university programs or research (outside of ASAE & The Center and a few other institutions) specifically on association management. It starts with defining what a profession is, and association management falls into a murky area.

To me there's not much of a question of the fact of "the power of A" -- associations do affect the world in many, many ways. How important is it that those outside the association sector realize the cumulative effects? And even if it is important, how likely is the widespread understanding of what associations do and why they are important?

I am concerned. Had the occasion to speak with some association folks recently, and I was surprised at the optimism level. Don't get me wrong, I'm all for optimism, but my cause for concern is that this is false optimism.

After hitting it's recent low about a month ago, the Dow trickled back upwards for a while before flattening out for a few weeks. There were a couple positive economic indicators (and a few not-so-positive) and some encouraging words from the president and the Federal Reserve. And then there's the backbreaker: people are just tired of the economic reality, the endless news cycle, the bad news, the scandals. I think all of this has given people -- or at least some of the people I've talked to recently -- a notion that the worst is over.

I don't believe it. Keep a thimble full of optimism if it helps you get through the day, but don't close your eyes to reality. Associations traditionally are lagging indicators on the economy, meaning all the layoffs and bad news and such that we read about in the last six months, will begin to affect our bottom lines in the next six or nine months. A few months after it bottoms out for our members is when it will bottom out for us.

How fast will it bounce back? Anyone who thinks they can answer that is fooling themselves.

For more on what associations are doing and need to think about in this economy, see Economic Resources Online.

No one doubts the economy is affecting association meetings, but if anybody doubted that we are just at the starting line of the meetings distress, all one needed to do was have a few conversations on the show floor.

“Things were going well, I wasn’t experiencing hardly any affect—until January, then it start hitting pretty hard,” says Joanne Melser, who sells to the association market for Keystone Resort and Conference Center.

“We’re doing great in 09,” says Ross Mirmelstein, a meeting planner with the National Sheriffs’ Association. “We’re two months out and we’re tracking ahead of the last few years. What I’m worried about is 2010. It’s an election year, it’s on the West Coast, and I’m worried about what kinds of cutbacks localities are going to have to make. 2010 is a little scary for me.”

Of course, the economy is affecting associations right now, too.

“I’m not booking anything new,” says one hotel rep. "All we’re doing is rewriting existing bookings.”

A meetings consultant who requested her name be withheld says, “It’s the worst I’ve seen it in 20 years. I’m seeing budgets freezing, and lots of regional and small meetings just being cancelled.”

There is some good news, though. As in down economic cycles of the past, its associations that are keeping the entire sector afloat. With a few exceptions here and there, they are not cancelling their biggest meetings. There’s a general appreciation for association sector business during soft economic times. Hotels and destinations report not just a willingness, but an eagerness to work with associations to be sure the meetings are as financially successful as they can be.

As reported by Nancy Halsey and Dawn Smith of the Air Line Pilots Association International, associations are making nips and tucks where they can.

“Maybe you cut a reception, or you limit the open bar to an hour,” Halsey says. “You make your bookings for smaller groups, replace full meals with hors d’oeuvres.”

Smith adds: “We’re not hearing complaints. Our members understand what’s going on.”

Scott Williamson with ConferenceDirect says he’s seen the same things. “You’re going for fewer days and fewer room nights,” he says. “They’re being smarter about sponsorships and really watching costs, but the bottom line is associations in general have to have their meetings.”

You would think that a nonprofit named the Clean Technology and Sustainable Industries Organization would have it made, considering all of the federal attention on these types of businesses in the new stimulus legislation. However, CTSI is hardly sitting around helping members complete bank deposit slips.

Instead, it appears to have recognized a tremendous opportunity for itself that will help members in the short term and the entire industry in the future. Its just-launched program, cleanConnect, aims specifically at helping the thousands of new clean-technology entrepreneurs create small businesses properly and then execute the really hard stuff—e.g., survive for the long-term despite the weak economy. The program has been carefully crafted around the basics: “partnership building, policy advocacy, resources & information, and financial support.”

The nonprofit also has partnered with the Nano Science and Technology Institute to cosponsor 2,700 presentations, industrial workshops, and issue-specific “short courses” at the upcoming TechConnect World conference in May.

In addition, the nonprofit has established a unique style of “in-kind” (free) membership, with benefits focused primarily on CEO professional development/engagement and concerns. In return for the free benefits, cleanConnect membership participants must “contribute to the building of the CTSI clean technology community,” which might run from serving on industry action committees to passing resources to other members to writing articles—anything that “will benefit the community.”

“Whether it takes one year or three, the public markets will come back, credit will become available, and companies will begin thriving again,” the organization writes on its Web site. “By joining forces and working together as a community, clean technology companies will be well positioned to take advantage of the comeback. By building a strong resource network, sharing our collective knowledge, and unifying our political voices, we will continue to drive innovation in energy and environmental technologies forward.”

I love that CTSI is building in value to itself and the wider community as it simultaneously targets valuable resources at what some might consider a niche element of the industry. I'm also curious whether many other associations permit members to "work off" their dues payments. Anyone?

I have noticed that recently I am being bombarded with the offer to attend free education (webinars, seminars, audioseminars, etc.). I have always known that these types of things were available but there seem to be a lot more of them lately or groups are just promoting them more aggressively. This got me thinking about the following.

1. The free education I have heard of is typically given by a vendor. Do vendor-offered free events pose a risk to attendance levels at the association’s (ASAE in this case) own fee-based educational events? In some way are the vendors that are “members” of the association biting the hand that feeds them? Or is this just the price of doing business and is beneficial to everyone involved? Normally I would say that having free education doesn’t really affect the association much, but when money is tight like today, I am curious if the potential impact is much larger.

2. Are free events actually educational or are they just a disguised sales pitch? We all know that nothing in life is free. Have vendors realized that a sales pitch disguised as education is still a turn off even if it is free (I hope so)? Or are we as attendees so in need of education that does not hit our budget that we are willing to take a flier on an educational event that we know may be part sales pitch just with the hope that there is enough diamonds among the you-know-what that it ends up being worth our time?

3. For those of you who are members of other associations, is free education as prevalent in those associations as it seems to be within ASAE lately? I am a member of DMAW (Direct Marketing Association of Washington) and these types of things don’t seem to be offered at all. I was also a member of AFP (fundraising professionals) for a while, and, again, I rarely heard about things like this. Is the association community unique, and if we are unique why is this only happening here?

I am curious to know what this trend is telling us and how it will impact associations today, and in the future, as technology makes it easier and easier to provide educate as well as let potential attendees know all about it. I await your thoughts.

One of my longtime mentors and former nonprofit bosses, Jack Lorenz, will be buried In 12 hours, dead at the too-young age of 69. He was executive director of the conservation organization Izaak Walton League of America for 18 years before retiring, and he hired me as a magazine editor and media manager way back in the late 1980s after I moved to Washington, DC. I stayed there for more than six years, learning and erring as all overworked young professionals do in this sector.

Jack was not organized or formal when it came to mentoring staff. As the "Ikes'" former magazine editor himself, he did a remarkable job of not micromanaging me in his old role. Like IWLA's members, he was of salt-of-the-earth stock, rarely losing his temper and always operating with an open-door, excuse-the-mess style. He wasn't perfect, and he let me be the same. I appreciated that--not many mentors are comfortable acknowledging their own weaknesses. He tried to be gentle when he pointed out mine.

Together we would attend the annual Outdoor Writers Association of America conference, an extremely male-dominated event at the time. It was intimidating for any woman, especially one in her 20s. Everyone always thought I was someone's daughter along for the ride. At my first conference, I almost went home after the first night. The level of sexism and, at times, blatant harassment was quite unnerving.

Jack, though, would get his back up about it, and he was determined that I succeed despite the good-old-boy atmosphere. Because of him, I finally agreed to run for OWAA's national board, which I didn't make the first time. The second run was a ringer, though, and I still count that board experience and its painful challenges among my best professional learning experiences. I never would have taken the risk if he hadn't told me that he believed I could and should go for it.

I'm thinking of Jack tonight, and it's still hard to believe I won't ever see him again. Although I have not gotten together with Jack for many years, I have still felt connected through his crazy e-mailed jokes and the hilarious fishing stories that I'd sometimes run into in outdoor publications.

I'm so happy that he accomplished his lifelong personal goal of fishing every U.S. state and territory, and all of Canada's provinces. And I'm so grateful that Jack lived his professional goal of serving as a strong role model when it came to professional ethics, self-sacrifice, tireless optimism, true passion for mission, and generosity of spirit.

Most mentors never know how fundamentally they touch those they coach--so often their teachings aren't drawn from until a relevant situation arises much later. Maybe that's why good mentors seem in short supply--they just don't realize they're change makers.

I know you're up there watching me type right now, Jack, so I thank you again, and I wish you the best bass fishing Heaven has to offer.

It's easy to forget how much impact you have on the people around you. After all, you're not really thinking about them; you're thinking about what's gone wrong with the project you're working on, your plans for the weekend, an argument you had with a friend over last week's American Idol elimination. (Alexis Grace was robbed, by the way.) You're focused on your own priorities and not thinking about the fact that those around you are seeing your face and body language, and wondering what's wrong.

In this economy, the sensitivity is that much greater, especially for those of you who are CEOs or managers; your bad mood can cause a wave of worry. A series of bad moods can create a negative atmosphere in your entire office.

A quote comes to mind from Gershom Gorenberg's excellent book The End of Days, which I just recently finished: "You have to think not only about what you intend to say, you have to think about what people will understand you as saying." In context, the book is talking about the power of a religious leader. But I think there's a lesson here for association leaders as well.

What I take away from that quote is that it's not enough for us to think about what we're saying, whether to staff or to members. We have to think about how our body language, voice, and overall attitude communicates as well. And we have to think about alternative interpretations of what we say; "We're going through a rough time" can be interpreted as "We're all going to lose our jobs" by a nervous employee. It can never hurt to take the time to consider potential unintended readings of your words and actions, and how they can impact those around you.

During a discussion I helped to moderate earlier this week (the results of which will appear in the May issue of Associations Now--keep an eye out!), a CEO told a great story about a factory she knows of that makes bolts. Previously, the factory had focused on making bolts for yachts, but, clearly, the yacht market isn't what it was a few years ago. They're still a factory--they haven't gone into business as a call center or a hardware store--but they've changed their focus to start making bolts for another an industry that's growing rather than shrinking.

That led me to wonder: What are we doing in associations that's (essentially) building bolts for shrinking markets rather than growing ones? And how can we change our internal machinery to make it possible for us to build bolts for new, growing markets in addition to, or instead of, the shrinking ones?

A few thoughts occurred to me:

- Take a hard look at your programs and products for the next several fiscal years. Do you realistically expect growth (even after the downturn ends)? If, realistically, you expect flat or shrinking revenues, should you consider dropping or restructuring the program or product? After all, you can almost certainly expect expenses to rise over time rather than fall.

- Look at what slows your association down. Once, in a meeting, I made a comment about associations not typically being "blindingly fast." The other attendees laughed in agreement. But at the time I started to wonder, why can't associations be blindingly fast in our responses to the business environment? What's holding us back? Find ways to be more nimble, and your association will be able to aim for those new, growing markets quickly once they're identified.

- Create an early warning system. Social media offers some great opportunities in this area, but more traditional research could be helpful as well. What are your members and nonmember prospects spending money on (especially if they're not spending it with you)? What ideas does that give you for ways you could change your own offerings to better provide them value?

What other ideas do you have?

Journalists are among the professionals who have taken a hard hit during this economic downturn. Just look at the closing of such revered newspapers as The Seattle Post-Intelligencer or the bankruptcy filings of The New York Times and many other media outlets.

As a result, the Society of American Business Editors and Writers (SABEW) has been finding creative ways to help members “cope with the media transformation.” Like numerous associations, it permits unemployed members a one-time deal of discounted dues (many other organizations offer a 100% dues waiver for six months or a year), has expanded its jobs listings site (and disabled all password access requirements to allow any journalist anywhere to search the job postings site), and even launched a freelance market to unite editors with freelancers. A new listserv enables editors and media organizations to distribute work proposals to 100-plus freelance subscribers.

However, SABEW is offering something I haven’t seen before but think is a terrific idea: “a mentor for business journalists who accepted a buyout, was laid off, or otherwise put out of work by workforce cuts.”

“The aim is to help these journalists by providing advice, networking opportunities, and career development suggestions,” writes the organization.

I bet many other professional and trade associations would find significant support for such a program within their ranks. If your organization is doing something like this, I’d like to know about it. Please email me at kclarke@asaecenter.org. I’m hoping this catches on and further strengthens the mentoring programs so many organizations already have.

In response to the down economy, the League of American Orchestras has created a free, downloadable Support Kit for members that could be a helpful model to other association and nonprofit leaders.

The kit includes special management advice, a 24/7 free financial management webinar by the League’s chief financial officer (who based it on a popular presentation at the group’s 2008 conference), and—of most help to all associations—a media guidance document to help members relay the organization’s most important messages to business reporters.

“The key is to take the time to prepare and practice delivering clear messages … for making the most out of a media opportunity in this environment,” states the document. It then spends five, clearly written pages walking a member through the process of identifying and voicing confidently the desired points.

Frankly, I’m surprised more associations haven’t done more quick media training with their members—I’m certainly seeing many additional materials offered in online newsrooms by national staff. Kudos to the League for coming up with inexpensive, informative materials that will help members cope with the economy at the community level.

Here’s a Times article relevant to associations that might be easy to miss as it’s buried in the local New York news section. It highlights how charities are seeing an influx of volunteers.

The idea this sparked in me was the need for associations to tailor a short-term volunteer package aimed at raising the profile of a jobless member while giving the organization a boost of knowledge for content.

There's been quite some activity on the International email list on what it means to be global and some additional chatter on how the economy is affecting U.S.-based outreach internationally.

I wanted to point to the latest series of videos on This Week in Associations. The first features Project Management Institute CEO Greg Balestrero who talks about how PMI has found success in becoming a truly global organization. He's followed by John Peacock, who leads the Association Forum in Australia (think of it as the Aussie's SAE) and Supratik Bhattacharyya, CEO of Association Management Initiatives in India. The videos were shot several months ago just as the world appeared perched on economic freefall, so they talk more about the how the market opportunities are different in different places than on what the global recession means. Still there is useful tips for organizations that have begun or are thinking of a more global perspective.

The opportunity to penetrate deeper into global markets quickly probably exists now more so than a year ago. But obviously there are barriers. First, despite the talk of opportunity, most associations seek to contract rather than expand in tough financial times. And when the global economy is as bad as it is today, I've heard of trade associations exerting pressure to curtail international initiatives, not just as a cost-cutting measure, but as a protectionist measure.

Watch the videos, and then share your thoughts: what should an association's international role be in such times of economic crisis?

See the other two videos.

The National Committee for Responsive Philanthropy’s new report, “Criteria for Philanthropy at Its Best,” has set off lively debate within the nonprofit community about the group’s proposed set of benchmarks for charities’ effectiveness. While NCRP Executive Director Aaron Dorfman says the report aims to foster conversations about “standards of excellence in charitable giving,” the Alliance for Charitable Reform—a project of the Philanthropy Roundtable—warns that the benchmarks “have nothing to do with measuring effectiveness. In fact, the natural consequence of these benchmarks will be to reduce the scope and diversity of the foundation sector to one that serves a more narrow set of highly politicized interests.”

The group also is worried that the benchmarks will be “distracting” for the sector at a time when they must stay focused on responding to dramatically increased public needs for assistance in light of a weak economy.

"On average, foundation assets have dropped 20%-40%, and The New York Times reports an unusual number of charities filing for bankruptcy. It is incomprehensible that the NCRP is proposing criteria that could further ravage the charitable sector," says Sue Santa, senior vice president for public policy, The Philanthropy Roundtable.

NCRP, meanwhile, says its research shows that grantmakers “are not delivering as much social benefit as they could” and notes that more than 120 nonprofit leaders and foundations have already endorsed the criteria.

"What we offer foundations are reasonable principles and attainable goals," explains Niki Jagpal, research and policy director at NCRP and primary author of the report. "It's important for foundations to know that some of their peers already are paving the way for the rest of the sector."

To hear more about this conversation, visit www.acreform.com and www.ncrp.org.

A fabulous 13-minute podcast of learning guru Elliott Masie interviewing world-renowned executive coach Marshall Goldsmith on “Leadership in Uncertain Times” is available free and is well worth getting a cup of coffee and having a listen with pen and notebook in hand.

Goldsmith starts off with some firm advice: “What not to do is fake it … There’s nothing to be embarrassed about” in terms of not knowing what will happen. But subordinates do need to know “where am I going now?”

Goldsmith urges leaders to pursue a six-question dialogue that should help reveal some sensible strategic options:

1. “Where are we going? (And where do you think we should be going?)”
2. “Where are you and your part of the business going? And where should you be going?”
3. “What are you excelling in?” (This is called the “doing well” question, and Goldsmith wishes leaders would ask it much more frequently, regardless of the economic landscape.)
4. “If you were the coach for you, what advice would you have?” (Prepare to be shocked at the honesty of these answers, which are often more substantive and relevant than anything the leader might suggest, according to Goldsmith.)
5. “As a leader, how can I help?” (The answers help you shape an action plan for yourself to best support others.)
6. “What suggestions do you have for me as leader?”

Most of all, Goldsmith warns leaders not to become paralyzed, especially by the big, scary numbers that may result in a feeling of helplessness. “What is, is,” he quotes a Buddhist mantra. “Ask yourself, ‘Given the reality of now, what’s the best step forward? …’”

Don’t hide from what is, he continues. Realize this reality can be hard to face, but you need to let go of the past, the anger, the grief…. "It may all change tomorrow.”

My own interview with Goldsmith on how the weak economic climate has affected board and CEO attitudes of succession planning, as well as guidance regarding what association leaders should do to help successions succeed, will appear in the next week or so on ASAE & The Center’s new economic resources site.

“It was the best of times; it was the worst of times.” Remember that famous opening line from Dickens’ A Tale of Two Cities?

I turn on the TV at my lunch break and the Dow is down, or when it up, it doesn’t seem to stay up!

Everybody is talking about how awful things are, but strangely in the association management company business that seems not to be the case--at least based on my experience over the last couple of months and most especially the last couple of weeks.

Seems like every few days I get another call from another struggling association looking to cut costs by going with an AMC. The reasons for their troubles are as varied as the associations, but the common denominator is, they have to reduce costs! And the word is out--association management companies can save big money.

The AMC model, of course, makes lots of sense, especially for smaller organizations. Economies of scale, reduced overhead, shared resources, and smart use of technology can make the difference between folding and flourishing.

I think that those of us who run AMCs need to brace ourselves for a sudden influx of new clients--especially if the economy continues to tank for an extended period. What was a slow moving trend has become a potential tidal wave. We had best be prepared!

Some AMCs will choose to say “no” to prospective new clients because they simply can’t reconfigure their operations quickly enough to take them on. Others will be highly selective, only choosing those organizations who are the best fit. Still others will take on as many clients as they can, and worry about how to service them later. I plan to be in yet another group with a flexible operational model, access to skilled contractors to add quickly to my team, and good tools for assessing compatibility between our firm and the prospective clients.

For each day that the Dow falls, some board president is looking at an income statement and saying, “We can’t go on like this!” And some task force is comparing operational models and concluding, “Maybe we should get a quote from an association management company.”

I suspect, however, that we will not be simply seeing an increase in organizations wanting full management. What I am seeing is organizations that want to outsource some of their functions, while maintaining some staff and/or having volunteers take on more jobs.

The wise AMC will work closely with the board to define staff, board, volunteer and AMC responsibilities. The new economy will make “strange bedfellows.” The key to sanity has to be clearly defined roles and responsibilities and strict accountability of all parties.

We also must understand that the clients we get in times like these may be in an apparent death spiral. Some we can save, and some simply can’t be saved because they have become irrelevant. In my experience, organizations that are really desperate start to clutch at straws. They have a new idea a minute and want staff to implement each of them--at no additional fee, of course.

For an AMC, scope creep is the enemy of profitability. We are doing ourselves and our clients no favors when we spend our time in a reactive mode. In order to really help our struggling clients we must focus their energy and our energy on the things that really can make a difference to the client's bottom line.

While AMCs may not suffer the usual ravages of a failing economy, we have our own unique set of challenges. The test will be how we react, both as individual firms and as an industry.

(Note: This post was corrected thanks to a commenter's sharp eye. Thank you!)

In addition to state and local government projects, “America’s 1.4 million private nonprofit organizations also have significant ‘shovel-ready’ infrastructure projects that have been put on hold due to the credit crisis,” starts a survey analysis at John Hopkins University’s Center for Civil Society Studies. “Indeed, nonprofits have long faced special barriers in generating investment capital due to their nonprofit status and their inability to access the equity markets, and the current credit crisis has simply added to their woes.”

More than 1,835 organizations responded to the survey, identifying an impressive $10.6 million of “shovel-ready but stalled” infrastructure projects that they hope will move forward with recovery support from the U.S. economic stimulus package signed last week. Almost 40% of respondents acknowledged that they had delayed at least one infrastructure project due to the weak economy.

The study is a joint project of the center, Alliance for Children and Families, American Association of Homes and Services for the Aging, American Association of Museums, Community Action Partnership, League of American Orchestras, Lutheran Services in America, Michigan Nonprofit Association, National Council of Nonprofits, and United Neighborhood Centers of America.

Monica Dignam, vice president of industry & market research for ASAE & The Center, presented findings from the just released: Impact Study: Beliefs, Behaviors, and Attitudes in Response to the Economy.

(See the full white paper on our new Economy Resources Online, a constantly updated new web page devoted to leading associations in a turbulent economic climate.)

Here are some of the ideas/suggestions for what associations are doing from session attendees:

- Waiving dues for a year for unemployed members.

- Expanding the “retired” member status with lower registration fees and less expensive dues to unemployed members.

- Enhancing the career services offerings, including adding mentoring opportunities, resume critiquing and commenting, and information on how to do a job search (in a profession where people may not have had to look for employment in a long time).

- Invite a group of members to a roundtable discussion to find out what issues they are having, bring in experts/economists to talk to them, and develop a white paper or other product for members.

- If attrition clauses are kicking in, use it to provide “scholarships” in the form of free housing to selected or hard-hit members. Involve chapters to help add value and possibly share cost burden.

- Rethink the annual meeting, replace big, expensive bash with low-key networking opportunities designed to get attendees talking with each other.

- Give attendees a $20 Visa giftcard instead of offering an expensive lunch or dinner.

Associations were front and center during speeches before and during the signing of the much-debated economic stimulus bill—the American Recovery and Reinvestment Act--yesterday by President Barack Obama in Denver.

First, Blake Jones, president of the small but rapidly growing Namaste Solar company, cited statistics by the Solar Energy Industries Association that estimate the stimulus package will create 69,000 new jobs this year and twice as many in 2010. He also emphasized the organization’s stance that solar energy provides “one of the most important and fast-growing job sectors in the U.S…. Green jobs are good for everyone.”

President Obama followed later with a shout-out to a variety of the bill’s bipartisan supporters, including the National Association of Manufacturers and the AFL-CIO.

He also urged Americans (and I’m sure this will prove valuable to associations as well) to monitor progress created by the legislation at a new web site—www.recovery.gov—and to find a state-by-state breakdown of where the money will go and how many jobs it will create in each sector and industry. The package of $789 billion aims to create or save 3.5 million jobs during the next two years, with job creation occurring in a wide range of industries from clean energy to health care. More than 90 percent are expected to be created in the private sector.

“It is a plan that will be implemented with an unprecedented level of transparency and accountability," said President Obama. "And we expect you, the American people, to hold us accountable for the results.” You can read the President’s and Vice President’s full remarks here.

We received a recent request to our Knowledge Center about the ramifications of dissolving an association’s 501(c)3 subsidiary such as a foundation. It coincided with a discussion I’d had recently with two fundraisers who said they were struggling to generate revenues for their associations and had “all but given up” on raising money for their subsidiary foundation as well.

Obviously, the Internal Revenue Service has a number of guiding documents about closing down a charity, including “Dissolving a 501(c)3”, IRS Rev. Proc. 82-2, "Life Cycle of a Private Foundation," and "Termination of Private Foundation Status."

If you subscribe to The Chronicle of Philanthropy, you can access a June 1, 2006, article called “Engineering a Foundation’s Demise,” or if you receive Trusts & Estates, you can look up the more recent article June 2008 article, “Breaking Up Is (Not So) Hard To Do.”

I’m hearing an avalanche of “greening” stories from association and nonprofit professionals who are either eager to leverage the frequent cost savings, increased efficiency, and positive brand-building of such efforts, or are already seeing tremendous return on investment for such actions.

It seems that anecdotes and solid data about associations and other businesses saving serious amounts of money through their efforts to become more eco-friendly in their IT operations, publishing, direct mailing/fundraising, and other functional areas are starting to spread more rapidly now that the economy has been sinking.

Still, some leaders who may not have much experience in creating sustainable value may be tempted to push the pause button on their organization’s social responsibility initiatives. They may want to think twice. A new study by the consulting firm A.T. Kearney finds that “companies committed to corporate sustainability practices during this [economic] slowdown are achieving above-average performance in the financial markets. … So before tossing out those sustainability practices and initiatives, it might be wise to first determine the real value of the efforts—especially the possible rewards for staying the course.”

GuideStar is reporting that 500,000 nonprofits could lose their tax-exempt status in May 2010, if they haven’t yet filed the required Internal Revenue Service Form 990-N and continue to not do so for several more years. 2008 was the first year when this specific set of small nonprofits—groups that didn’t meet the income threshold for filing an IRS Form 990 “or its variants”—were required to file a new IRS form, according to the Pension Protection Act of 2006.

“Nonprofits whose exemptions are revoked will suddenly be required to pay federal income taxes -- and subject to financial penalties if they fail to do so. Hundreds of thousands of charities … could find them themselves no longer eligible to accept tax-deductible contributions,” Guidestar states. “Nonprofits that wish to have their exemptions reinstated will be required to re-apply to the IRS for tax-exempt status, a process that can take several months.”

"If you volunteer with, work for, or give to a smaller nonprofit, make sure its leaders know about the 990-N,” urges Bob Ottenhoff, GuideStar president and CEO. "… Smaller nonprofits make up as much as three-quarters of the nonprofit sector. They are the local animal rescue societies, the neighborhood groups that tutor elementary school students, the all-volunteer organizations that drive cancer patients to chemotherapy. Collectively they have a tremendous impact, and society will be the poorer if these organizations lose their federal tax exemptions.”

I'm sure I'm not the only one going over my budget with a fine-toothed comb right now; we're all keeping a close eye on revenue and expenses in the current economic climate. But some associations have been hit harder than others.

This month's Associations Now case study (available online) takes a look at this issue from the perspective of three small, local philanthropic groups, all of which are partially funded by their local government due to the nature of their work in the community. When their local government is considering major funding cuts to balance the budget, how should they respond?

Thanks are due to Barbara Bingham and Catherine Brown, both of whom provided insightful commentary from their perspectives as philanthropic executives.

What do you think associations and nonprofits facing budget shortfalls should be doing? What do you agree with or disagree with in this case study?

All this talk about an economic downturn – I think it’s been a solid hour since my last invite to participate in a survey about how the economy has affected my association and our members – led me to an interesting question: In today’s economic environment, how can we outsmart the associations with which we compete for members?

The answer, at least in my mind, could take one of two paths:

1) Quantity. Market more services and benefits than usual – for your association – with fewer resources. In other words, decrease the expense per service and offer more services. The focus here is on value-added services. How can association staff add value and spend the least amount of money? Generally, these services take little funding or staff time to administer, such as members-only Web site access or an invitation to participate in your association’s committee meetings.

2) Quality. Market fewer services and benefits than usual – for your association – with more resources. In other words, increase the expense per service and offer fewer services. The focus here is on a handful of impressive services. How can association staff outshine their competition by strategically funneling money into fewer services that yield a larger impact? Obviously, these services require more funding and staff time to administer, such as a complimentary subscription to a well-respected magazine you publish.

The point here is that during an economic downturn, it’s unrealistic to do both. Likewise, a reduction in staff, revenue, members, resources or some combination thereof means the status quo is also not an option. Yet, we all agree that standing out is a top priority. So, my question to you is this: Does your association subscribe to the notion of quantity over quality or quality over quantity? What does that look like in your association?

Wow. At a time when most nonprofits are hoarding every dime, it’s amazing to read that Rotary International, the Bill and Melinda Gates Foundation, and the leaders of economically hard-struck nations Germany and England are keeping their “eyes on the prize”—eliminating the last bastions of polio—by announcing a $635 million donation to the eradication effort.

Rotary has committed to raise $100 million during the next five years to boost vaccination campaigns in the polio hotspot regions of India and Nigeria, an effort that has inspired the Gates foundation to give $255 million to the nonprofit’s initiative over that same period. Already, Rotary’s 33,000 clubs worldwide have raised $61 million of a $100 million pledge to match a 2007 donation by the Gates foundation. Great Britain continues it highly visible position as one of the top governmental leaders in the eradication effort by pledging another $150 million; Germany, also a longtime committed partner, will donate $130 million.

Polio—an “epidemic prone disease,” as described by one expert--has not been as easy to eradicate as health professionals had hoped, and the effort has suffered setbacks. In 2008, 1,625 polio cases were reported globally, an increase of 500 from 2007 numbers. However, since Rotary and its partners began their efforts in 1988, the caseload has been reduced by 99%, so NGO leaders are not giving up.

Congratulations to Rotary International and the Gates foundation for showing real optimism, focus, and determination to keep to their core missions in the face of a global economic crisis!

It doesn’t take a rocket scientist to figure out that enormous deficits and declining tax revenues lead to difficult times maintaining funding for existing programs, much less funding new priorities. Prepare for this tough environment through the following activities:

Learn the Rules of the Game: A range of online resources offer insights into the budget process. If you’re worried that this might be a really dull way to spend a couple hours, remember that those who know the rules of the game are far more likely to be successful. Take a minute to look at the Center for Budget and Policy Priorities’ Overview of budget process or the House Rules Committee Overview materials to ensure that you know what should happen when – and how to take best advantage of the process.

Don’t Ignore the Agencies!: Many advocacy organizations focus on the Congressional process for managing the budget, but the numbers and priorities are initially established at the agency level. Take a minute to review the OMB website to learn more about what happens with the agencies.

Run the Numbers: A site like USA Spending or OMB Watch’s Fed Spending can help you figure out how your policy priorities relate to the rest of the federal budget. You can even compare your piece of the budget pie to others at the National Priorities Project site. This information can be invaluable in making arguments as to why your organization’s priorities should continue to be supported.

Got the budget figured out? Great! The last installment of this series will look at a few fun and interactive ways to get advocates engaged in early 2009 and beyond!