An association management company provides management and specialized administrative services to nonprofit professional and trade associations. The company has a full-time staff of experts to manage and maintain the association. It also communicates with residents and offers financial reports. Read on to learn more about what an association management company can do for you.
They Are For-Profit Businesses That Manage Associations.
An Association Management company (AMCs) provides turnkey management for associations, including membership development, event planning, and policy development. AMCs specialize in the unique needs of associations and are equipped with proven systems for managing various organizations. Whether your association is large or small, an AMC can help you use your time and resources best.
AMCs have provided management services to associations and nonprofits for over a century. Although many association executives are unaware of this model, AMCs help associations by providing specialized administrative services. AMCs employ employees with specialized knowledge that associations lack. They can also help associations find new revenue streams and improve operational efficiency. According to a study by the Association Management Institute, associations under AMC management saw an average increase in revenue of 9.6%.
They Provide a Full-time Staff of Experts.
Association Management Companies are dedicated to helping nonprofit organizations run smoothly. They can handle administrative tasks, streamline processes, and save the nonprofit time. They also provide standalone services that fill gaps in the organization’s operations. For example, they can consult on short-term projects and help the nonprofit develop a strategic plan.
These organizations have a full staff of experts that specialize in association management. These employees extend the association’s staff. They are capable of managing both administrative and financial tasks. Marketing and communication can be included as extra services. And many of these experts have a wealth of experience.
Association Management Companies specialize in running associations to offer valuable insight. Their experience working with associations allows them to tailor their approach to the organization’s needs. So whether you need assistance with recruitment, marketing, or membership initiatives, AMCs can help.
They Provide Financial Reports.
Monthly financial reports are a critical component of association management. The financial reports show the health of an association and inform ongoing decision-making. In a good financial report, there should be no decline in cash on hand or variance between actual expenses and budgeted expenses. In addition, vendors should be paid the agreed-upon amount, and funds should be available for capital improvement projects.
An association’s financial reports include a general ledger, an account that holds the association’s financial records. These records are sorted by account number and date and act as the master record for all the financial transactions in an association. This general ledger also serves as a basis for other standard financial statements. However, it is important to understand that the general ledger can only be as good as the records.
They Communicate with Residents.
When communicating with residents, Association Management Companies must be very careful. It is imperative that all communications are based on a consistent message and should address the needs of the community. Social media is a great way to communicate with residents, but the messages must be succinct and to the point. In addition to this, it is crucial that residents feel heard and acknowledged.
Associations should invest in technology solutions that improve communication between residents and management. For example, an association portal should allow members to pay assessments and submit maintenance requests online. It should also enable management to communicate with the entire community in an emergency quickly. Also, training community members in the use of technology are essential to ensure that residents can use it as efficiently as possible.
They Operate in Common Areas.
Community Association Management (CAM) companies are hired by boards of directors and work on homeowners’ behalf to oversee an association’s day-to-day operations. They can manage all associations, from condos to single-family homes and resort communities. CAMs’ primary functions include developing budgets, presenting financial reports to the Board of Directors, performing site inspections, and resolving disputes. In addition, these companies typically pay various vendors and suppliers for services to the association.
AMCs provide various services to organizations, including common areas management, membership development, financial management, and strategic planning. AMCs also provide dedicated staff and resources in critical areas of association management. These professionals work as extensions of an association’s staff, resulting in increased purchasing power and staff efficiency. In addition, AMC offers specialized services, including marketing and communications services and membership development.