Association Management Company Fee Assessment
If you are managed by an Association Management Company (AMC), we understand the need to assess the relationship and the fees that are charged.
A review of management fees every three years allows an organization to improve and evaluate its current management relationship and identify opportunities for efficiencies and/or realigning fees with industry benchmarks. We have performed management assessments for a variety of trade, business, and healthcare organizations.
Typical management assessments include a comprehensive evaluation of the management fees and staffing structure, a comparison of management models, and in-depth volunteer and staff interviews to identify opportunities to improve and if needed, repair, the volunteer and management relationship.
Some of the services include:
Hourly Rate Comparison – Association Options will determine the current average hourly rate within your AMC and determine how it compares to other AMCs.
Operating Ratio Review – Most association management companies utilize the American Society of Association Executives’ Operating Ratios report as a tool to compare their fees to those of independently managed organizations. Association Options has extensive knowledge and use of these ratios and will apply them to the AMC fee assessment.
Salary Comparison – Using the American Society of Association Executive’s Salary and Compensation Study, as well as our experience in conducting Executive Director and Senior Staff searches, Association Options will compare the management fees against expected salaries for a similar number of Full Time Equivalents (FTE’s) in similar job functions.
It is a fiduciary responsibility of any board of directors to ensure that the fees charged by your AMC are in line with industry data. This will only help to strengthen the relationship between your association and your AMC.