Generating revenue is one of the most critical factors in the success of an association.
Unfortunately, membership dues alone aren’t enough to cover most association’s expenses. In fact, according to ASAE, membership dues cover only 30% of an association’s revenue, down from 95.7% in 1953.
This means most associations are looking for creative ways to generate that extra 70%. If this sounds like your situation, consider NDR (non-dues revenue).
But, before we get to NDR ideas, let’s look at how revenue streams can impact an association’s bottom line.
- Funding operations. Revenue is necessary to fund day-to-day operations, including staffing and program development.
- Membership benefits. Revenue enables associations to provide benefits to members, such as educational programs, networking events, and resources.
- Advocacy efforts. Revenue can support an association’s advocacy efforts on behalf of its members and cause. This includes lobbying, public relations campaigns, and other activities that advance the mission.
- Growth and expansion. Revenue can also help an association grow its membership, programs, and services.
- Financial stability. Revenue is critical to ensuring long-term financial stability. This enables the association to weather economic downturns and changes in the market.
Non-dues revenues are critical for making up that extra 70% that dues doesn’t cover, and also provides several benefits for an association, including:
- Diversified Revenue Streams. Non-dues revenue strategies can provide a diverse set of revenue streams, reducing the reliance on membership dues. This can help associations withstand economic downturns or other disruptions impacting membership levels.
- Financial Stability. A diverse revenue stream provides financial stability for an association, ensuring that it has the resources to achieve its mission.
- Increased Member Value. Non-dues revenue strategies can provide value to members beyond their membership. For example, associations may offer educational programs, conferences, or networking opportunities.
- Expanded Reach. Non-dues revenue strategies can help reach new audiences, such as non-members, sponsors or advertisers. This can raise the association’s profile and establish it as a leader in its industry.
- Enhanced Innovation. By exploring new revenue streams, associations can encourage creativity, which can drive growth.
- Competitive Member Dues. Non-dues revenues can keep your member dues from getting too high.
An association can generate non-dues revenue in several ways. Some of the most popular methods include:
- Sponsorships: Offer sponsorship packages to companies or organizations. These sponsorships can include various benefits, such as branding, advertising, and recognition.
- Events: Host conferences, workshops, and seminars, and charge registration fees attendees.
- Donations: Accept donations from individuals or organizations that support their mission or cause.
- Job Boards: Job boards can provide value to members, increase engagement, generate revenue, and establish associations as a leader in their industry.
- Event space rental: If you have a physical space, rent out your facility.
- Advertising: Offer advertising opportunities in publications or websites to companies or organizations. Social media sponsorships are also a good option.
- Grants: Apply for grants from foundations, government agencies, or organizations that fund programs.
- Education and training: Offer educational and training programs and charge fees for attendees.
- Merchandise or services: Sell products or services related to the cause, such as books, merchandise, or consulting services.
- Certification and accreditation: Offer certification or accreditation programs for a participant fee.
A non-dues revenue strategy can result in financial stability, increased member value, and expanded reach. By diversifying revenue streams, associations can reduce their reliance on membership dues.
Non-dues revenues are either internal or external. Internal revenues include merchandise, conference fees and products. External revenues include sponsors, grants and vendors.
Fortunately, AMO has several ways to generate non-dues revenue. Contact us today to learn more about how AMO can help generate non-dues revenue.
