“Show me the money!” This is often the response, in one way or another, to any budget request for an investment in technology. “What’s the return? What additional value will our association get out of the dollars it has to spend?”
You can often justify an expense for technology if it benefits the association or its members. But if you mention that it’s for the association’s chapters, eyes start to roll. Associations often ask themselves the question, “Are chapters contributing to the association’s strategic plan and the bottom line?”.
While most associations would say that chapters are a key channel for member engagement, retention, and acquisition, they would also argue that chapters are underperforming in these areas.
Something we know from working with more than 50 associations with chapters is that these local and state groups often struggle with low volunteerism, inefficient technology and processes, and a mismatch in skills and knowledge. In fact, chapter leaders typically have a strong understanding of their trade or profession but often lack the know-how to run a successful nonprofit membership organization. They need support.
A Case In Point
Patrick is a savvy association executive who realized that tracking the return on investment (ROI) of his chapters would enable him to justify an investment in additional support, allowing chapters to deliver more value for the association. The result: His association is getting an 8:1 return on their dollars. He secured the investment.
How did he do it? He examined the value chapters provide in terms of member engagement (e.g., registrations) and volunteer activities, such as leadership service on boards and committees, serving as speakers, writers, and participants in Capitol Hill meetings. As Patrick said, “While there’s no direct financial return from a chapter volunteer’s activity, there is a potential replacement cost for it because without volunteers, what’s your option? You’d have to hire staff to replace them.”
Using this approach, the association valued chapter member engagement alone at $1.5 million. Patrick shared his story in a webinar with Peter Houstle from Mariner Management: Chapters: Are They Worth the Effort? They provided an overview of an ROI tool and the value of understanding the ROI of chapters.
The exercise also helped the association pinpoint where chapters could and should provide value. This, in turn, enables effective decision-making regarding staff and financial resources.
