1. The Global Economic Situation:
Implications for Associations
ASAE & The Center
KPAC Meeting
12.15.09

2. Slide 2
“In the mountains of truth, you never
climb in vain. Either you already reach
a higher point today, or you exercise
your strength in order to be able to
climb higher tomorrow.”
-Friedrich Nietzsche

3. Slide 3
Slide 3
The S&P “Mountains of Truth…”

4. Slide 4
Slide 4
Late 2008
Significant change in our community:
• Palpable fear
• “End of the world” scenarios
• Major losses in reserve portfolios
• Many initiatives put on hold

5. McKinley EIA Studies: 2009
Quantify impact on associations’:
• Budget
• Staffing
• Membership
• Conference attendance
• Advertising & sponsorship revenue
• Marketing

6. Key Association Business Lines in 2009
% of Respondents Reporting Declines
Down 1-9% Down 10-19% Down 20% or more
80%
70%
60% 7%
26% 21%
24% 20%
50%
20% 14%
40%
19%
21% 14%
30% 20% 21%
20%
37%
25% 26%
10% 20% 20% 22%
0%
Annual meeting Sponsorship Advertising Membership Attendance at Membership
attendance retention other educational recruitment
seminars
Source: McKinley EIA Study, June 2009
N=242

7. Negative Impacts in 2009
% Reporting Actions Taken Year to Date
Budget cuts 86%
Salary Increase Freeze 55%
Hiring Freeze 50%
Reduction of Programs and Services 38%
Staff Reorganization 32%
Change in Investment Strategy 32%
Layoffs 30%
Outsourcing of Staff Functions 13%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Source: McKinley EIA Study, June 2009
N=211

8. Slide 8
Slide 8
Three Good Reasons…to be excited
1. The downturn has given us license to
innovate and fast-track ideas
2. We can tap into customer insight in so
many ways
3. Some things will not change

9. Preliminary Results
2010 EIA Study

10. Slide 10
Slide 10
Did your organization access reserve funds in 2009?
Yes 56%
No 38%
Don’t know 7%
If yes, was the reserve funding used to:
Cover operating expenses 48%
Invest in new initiatives 19%
Both 33%

11. Slide 11
Slide 11
What do you expect to happen in 2010?
Combined %: “Is happening now” and “definitely/probably will happen”
Budget cuts 75%
Freeze on salary increases 61%
Hiring freeze 60%
Reduction of programs and services 53%
Change in investment strategy 44%
Staff reorganization 41%
Layoffs / elimination of positions 27%
Outsourcing of staff functions 26%

12. Take the 2010 EIA Study!
tinyurl.com/ye372g7
Past EIA Reports
mckinleymarketing.com/resources/WhitePapers.htm
“Three Good Reasons” Article
mckinleymarketing.com/resources/EIAarticle.htm