Category: Association Management Company Search

We are your advocate.

We will work to secure the right association management company for your organization.

Bill Pawlucy, M.P.A., CAE, IOM has more than 14 years of experience with association management companies and will work corroboratively to ensure a good fit while maximizing the negotiation process.

There are more than 800 association management companies, does the board leadership want to wade through 50 proposals and manage the entire process? Most boards will work with Association Options so they can maintain a strategic focus

A mistake selecting the wrong association management company will cost a $2MM budget association roughly an additional $200k

Using Association Options, a 5-15% savings in fees and extras can be saved during the process (i.e. on a three- year contract at $500k per year, that is a savings of between $75k – $225,000). We will make every effort to ensure that there is a fair agreement between both the association/nonprofit and the association management company

The Bottom Line

  • There are many variables to manage and to identify to ensure not only fit but a long-term mutually beneficial relationship
  • The board can maintain a strategic focus on the search while Association Options maintains a focus on hiring the best association management company for our client (in many instances it will be a specific association management company fit for each association/nonprofit)
  • The board can be confident that Association Options has performed a thorough scope of work analysis and the proposals received are fully in line with the needs of the association
  •  Association Options can provide a high-level of confidence that a thorough background check on references has been conducted
  •  Association Options will interview all the associations that have left the association management company
  •  Association Options will fully vet each association management company with its own rating and management tools
  • Association Options will ensure that the contract is charging the right fee and not a penny more so that the additional revenue dollars flow directly to the association’s bottom line
  • We are your advocate and will represent the association from the beginning of the process to the end and even during the relationship when the association management fee and scope of work are being discussed.

There are a lot of truths and misconceptions about association management companies. Deciding which association management company to choose could mean the difference between being a good nonprofit and a great one. The fit is critical and the time spent on the selection process invaluable. The following are some key items you should know as it relates to association management companies:

Types of Association Management Companies:
  • There are more than 800 association management companies
  •   Each association management company employees one individual to more than 500 professionals
  •   Every association management company has either a specialty (i.e. healthcare, agriculture, etc.) or provides services to all types of associations
  • One or several individuals own all but a handful of association management companies. A select few are involved in an employee stock option plan and the company is either entirely or mostly owned by individuals
How Association Management Companies Charge for Service:
  • A fee based upon hours after a review of the association/nonprofit’s scope of work is one common way to estimate a management fee
  •  A fixed fee management fee is one where the scope of work is reviewed and the fee is fixed for either one year or throughout the contract
  •  A mixed fee management fee is one where there is a base management fee with an hourly fee component built into the management fee (typically the fixed fee is billed monthly and the hourly fee is calculated monthly and billed monthly)
  •  A fee based upon the revenues of the association (for example, the first $1MM in revenues is billed at 25% anything above $1MM is then step-billed)
  •  A fee based upon net profit (for example, 50% of net profits are paid to the association management company)
  • Other variations exist but the most common are listed
What is the Best Association Management Fee Model?
  • There is no “best” model, it is based upon what the risk  tolerance level of the association/nonprofit is
  •   Hourly fee models tend to employ the highest level of risk as there is a tendency for associations to “spend” more hours than they have allocated
  •  Fixed fee model employees the lowest level of risk but at times can underestimate the resources necessary for the association/nonprofit’s scope of work
  • The mixed fee model is one that is gaining traction and has an appropriate level of risk for a association/nonprofit organization
  •   There is a difference in hourly billing that needs to be recognized and accounted for during the process (i.e. two management fees may look identical but the number of hours allocated is very different due to the association management company’s hourly rates)
  •  Hourly rate variations are healthy as long as the professional allocated meets the job’s needs
Why Hire Us!!

There are a lot of truths and misconceptions about Association Management Companies (AMC). Deciding which association management company to choose could mean the difference between being a good nonprofit and a great one. The fit is critical and the time spent on the selection process invaluable.

Download the White Paper here >> (PDF)

Association Options, LLC has developed a white paper to speak to:

  • Types of Association Management Companies
  • How Association Management Companies Charge for Their Services
  • What is the Best Association Management Fee Model?
  • Why Use Association Options, LLC?
  • The Bottom Line

To read all about these important topics, please download the pdf on tis page for more information.