About Association Management Companies

The Association Management Company (AMC) model is a common way for small- to medium-sized trade and professional associations, coalitions, and non-profits to manage operations. Many large groups also use an AMC model or outsource parts of their operations to AMCs. The AMC is a private, for-profit company contracted by the organization’s Board of Directors to provide management and specialized administrative services in lieu of a paid staff.

Advantages of the AMC model include:

• Reducing the liability to volunteer directors for directing paid staff
• Pooling resources, contracts, and vendor relationships across multiple clients
• Rapidly scaling or undertaking new initiatives without the uncertainty of bringing on new employees
• Accessing specialized expertise and a full service staff with diverse skillsets
• Customizing staff and services

Studies comparing organizations managed under the AMC model show better results in a number of areas, notably:

• Less frequent operating deficits
• More effectively containing deficits when they do occur
• Higher rates of growth
• More diverse revenue structures
• Lower expenses for staffing resources, occupancy, and capital goods