Finances for Associations: Building a More Resilient Future

For many associations, the financial model has long relied on a familiar combination of membership income, meetings and congresses, sponsorship, education and other services. These remain important, but associations also have opportunities to think more creatively about how they generate income and deliver value.

So perhaps the question is not simply, “How do we reduce costs?” It is, “How do we build an association that has more options?”

That means looking at new sources of income, new kinds of partnerships and, just as importantly, the governance needed to make those decisions well.

Think beyond the annual congress

The annual congress is often one of an association’s most visible activities, but its value does not have to begin and end when delegates arrive at the venue.

Associations sit on something incredibly valuable: expertise. They bring together people who understand a particular profession, industry or area of research. They create communities, generate knowledge and provide platforms where people can meet, exchange ideas and develop solutions.

That creates opportunities to build services around what associations already do well. Education and professional development, for example, can extend well beyond a session at the annual meeting. Certification, training, research, publications and digital education can all provide ways for associations to serve their communities while developing additional sources of income.

In the United States, The National Air Duct Cleaners Association (NADCA) provides a clear example. Its 2023 annual report shows membership dues accounted for 41% of its revenue, while certification and training accounted for 34% and its annual meeting for 18%. NADCA also reported an affinity partnership with Sunbelt Rentals that was projected to contribute 6% of revenue that year.

The lesson is not that every association should adopt the same model. It is that associations can look at their expertise, relationships and existing activities and ask where additional value can be created.

As ICCA Association Engagement Manager Kerstin Jones puts it: “Although there is no one-size-fits-all approach, associations can learn from each other’s experiences and challenges and apply the key principles to their own circumstances.”

The same applies to meetings. A congress can be a place where research partnerships begin, professional relationships develop and ideas move from discussion into action. Instead of looking at the meeting as an isolated event, look at the ecosystem around it.

Who needs to be in the room? What can they learn? What can they create together? And what happens after everyone goes home?

Those questions can lead to very different conversations about value and revenue.

Corporate partnerships need to go a step further

There is also an opportunity in the way associations work with companies.

We often talk about sponsorship in straightforward terms. A company provides funding and receives branding, visibility, or access to an audience. There is nothing wrong with that model, but associations can go further.

The more interesting question is: what could we achieve together?

A technology company might help an association develop a digital service. A company might support professional development or a foundation programme. A university could collaborate on research. A destination could work with an association on a programme designed to create a lasting benefit for the local community.

These relationships can be built around shared objectives rather than simply exposure.

The Australian Shareholders’ Association provides another example. Its 2024 annual report recorded A$398,094 in corporate partnership fees, alongside A$444,530 in membership fees and A$431,973 from investor conferences, education and meetings.

These examples demonstrate different approaches, but the underlying principle is the same: partnerships can be designed around the value an association creates.

As Dermot Ryan, ICCA’s Head of Association Engagement, puts it: “Associations want partners and not just suppliers.”

That is a useful principle for the whole financial discussion.

New revenue streams and partnerships also bring responsibilities. This is where governance matters.

The board has to ask the difficult questions

New revenue streams and partnerships also bring responsibilities. This is where governance matters.

Boards need to understand how dependent their organisation is on particular sources of income. They need to consider what happens if a major revenue stream changes and whether new opportunities fit the association’s purpose.

When a partnership comes along, the questions should be equally clear. Does it support our mission? Does it benefit our members? Does it protect our independence? Are there conflicts of interest? What are the implications for our reputation?

Good governance is not about saying no to new ideas. It is about creating the confidence and framework to say yes to the right ones.

The strongest boards are not simply looking at last year’s financial results. They are also considering what the organisation needs to remain effective in the future.

Follow the value, not just the money

When we talk about financial sustainability, it can be tempting to focus entirely on revenue. How much can we generate? How much can we save? How much can we charge?

But associations need to start with value.

That value might come through research, education, advocacy, professional development, community building or meetings that connect people who would otherwise never meet.

This is particularly relevant to the meetings industry. A meeting is not simply a gathering of people in the same room. It can provide a platform for knowledge exchange, collaboration, and professional development.

The opportunity is to understand that wider value and build sustainable models around it.

More options mean more resilience

I don’t think the future association business model will be about replacing membership or congresses with something completely different. It will be about building more layers around what associations already do well.

Membership creates community. Meetings create connection. Education creates knowledge. Research creates insight. Advocacy creates influence. Partnerships can bring new capabilities into the mix.

For association leaders, this means being willing to explore new models while keeping a clear eye on governance and purpose. Not every revenue idea will work. Not every partnership will be right. And not every opportunity should be pursued.

But associations that explore their options thoughtfully can build something incredibly valuable: choice.

Financial resilience is not simply about having more money in the bank. It is about having more ways to create value, more relationships to draw on and more options when circumstances change.

For associations, that is a conversation worth having in every boardroom.

More about ICCA and how your association can benefit from being a member: www.iccaworld.org