Associations use strong financials and membership growth as footholds for innovation

Inaugural Mid-Year State of Associations Report released

Associations shape industries. Are associations in good shape?

Wipfli surveyed 228 professional and trade association leaders to understand how they’ve navigated economic uncertainty, technological disruption and new workforce dynamics – since they often guide others through change.

Our first quantitative study on the state of professional and trade associations revealed an optimistic outlook, even amidst persistent challenges so far during 2024. It also highlighted trends that are shaping the sector.

Key findings:

• Financial optimism: An overwhelming 99% of associations are optimistic about their financial viability, with 83% reporting an improved financial position compared to five years ago. Associations said their financial health was attributed, in part, to effective financial management and strong partnerships between association leaders and their boards.
• Membership growth: Membership and retention rates are up for most associations. Nearly three-quarters of associations reported increases in membership since last year, and 62% experienced improved retention rates.
• Technology: Associations said they’re confident in the validity and comprehensiveness of their data and satisfied with the tools they use. Nearly all associations (95%) use business analytics for decision-making, and about 80% intend to increase technology spending in the next 12 months. (The full report includes more details about purchase intent based on organization type and size.)
• Organizational challenges: “Finding agility to adapt to an ever-changing environment” was the top issue cited by associations overall. Staffing was also a persistent issue (and has strong ties to agility). About 76% of associations said they’ve struggled to attract and retain employees in a tight labor market. Smaller and trade associations are particularly vulnerable to staffing woes; nearly 40% lack a leadership succession plan.
• Consolidation and strategic mergers: Nearly 80% of our panel is considering consolidation or a merger within the next two to five years. Almost a third (30%) said consolidation is “very likely.” The sentiment was strongest among professional and mid-sized organizations.

Most associations are financially healthy and secure, which means they have time and resources to innovate and dream. Their wish list includes a deep and stable talent bench and modern approaches to new business challenges.

The full report includes more detailed data, plus industry insights and recommendations from Wipfli.

Professional and trade associations play a critical role in workforce development, standard-setting and innovation, and they champion a broad range of public interests. Their health and prosperity are essential to advancing industries and professional development overall.

Get the report

Media inquiries: Contact Teresa Schmedding, teresa.schmedding@wipfli.com