99% of respondents are either optimistic or cautiously optimistic about their finances, and 80% plan to increase their technology spending
WASHINGTON, Aug. 20, 2024 /PRNewswire/ — Wipfli LLP (Wipfli), a top 20 advisory and accounting firm, today published the results of a survey from the associations sector that shares insights into its current market challenges, financial optics and skillset evaluations, and long-term growth strategies.
According to Wipfli’s 2024 State of Associations Report, professional and trade associations alike show strong resilience and optimism about their markets, with finances and memberships up from the past year. Associations face several challenges within their space, and sometimes merging with similar organizations can help them better serve their members, leading 77% of respondents expecting to merge or consolidate with other associations in the next two-to-five years. Overall, while associations work within countless different verticals, common threadlines such as adaptability in changing scenarios, revenue streams, recruitment & retention issues, and technology concerns were present for associations of all sizes.
“The biggest takeaway from this report is that associations know that they need to rapidly develop their tech spend while they have the cash and space to do so,” said Kathleen DuBois, national leader for the nonprofit, government, and education practice at Wipfli who has also served as an association executive. “Membership and finances are relatively stable, or growing – now is the time to invest in new technologies and take advantage of the data they’re collecting.”
Already, the vast majority (93%) of association respondents use business analytics to make some or most data-driven decisions, and 86% are satisfied with their analytics solutions in place. Eighty percent of respondents are looking to increase their tech spend, and of those respondents, 23% are looking to ramp up their data analytics. Additionally, AI and CRM spend is on the radar for many associations. Specifically, CRM spend is top of mind for trade associations and many associations with under $250M in yearly revenue, while investing in AI is a bigger concern for professional associations and many associations with yearly revenues over $250M.
“Professional associations are performing very well with available resources, succession planning in place, and clear goals for the future,” added DuBois. “Trade associations, meanwhile, are focused on improving their leadership transition plans and diversifying their revenue streams.”
Another major concern for both trades and professional associations was talent. For associations facing recruitment and retention issues, providing leadership training, increasing training and professional development, as well as better benefits and offering remote work were listed as key ways of retaining top talent.
Looking to the future, associations need to continuously adapt to constantly changing scenarios, use leadership succession plans, utilize outsourcing, and develop new strategies to retain top talent. Due to current financial stability, tech investments made now can start to have a payoff down the road for handling the myriad of challenges associations face.
The associations report was based on responses from 230 professional and trade associations across the United States. The Wipfli 2024 State of Associations Report can be found on Wipfli’s website.
About Wipfli LLP
Wipfli is an advisory and accounting firm that delivers holistic solutions to help clients navigate the modern marketplace, optimize performance and drive growth. Our more than 3,200 associates deliver digital, people, strategy, risk, financial and outsourcing solutions to 59,000+ clients. In the association space, Wipfli helps business and professional associations better focus on the interests of their members and industries.
Media contact: Dante Keeler, dante@theplunkettgroup.com
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SOURCE Wipfli LLP
