Abacus | Questions to Ask Before Hiring an Association Management Company

A quick search for association management companies pulls up a lot of organizations that look similar, sound similar and offer similar services – how do you tell them apart and decide which is the best for you?

1. What are their values? How do they live them?

Choosing an AMC is an important decision. As the face of your organization, you need to ensure that their values and culture align with how you want your organization portrayed to the outside world.

Abacus believes that values are more than just words on paper. They are the principles that help guide every decision we make, the Clients we partner with, and help us create lasting impact. Our values are:

Always act with integrity.
Value people over processes.
Our Client’s best interests come first.
Learn something new everyday.

2. Why do they do this work?

It’s important to understand why the AMC is in business and its goals in serving its clients. While all AMCs have a goal to make a profit, if that’s their driving force, you can’t be confident that the decisions they make on behalf of your organization are in your best interest. Ask them about what got them into this industry, what drives them and their long-term goals for both their AMC and the organizations they serve.

At Abacus, we envision a world where associations and non-profits make lasting, sustainable impact on the people and communities they serve. We’ve seen firsthand how dysfunctional operations, misaligned boards, and over-stretched teams can negatively impact an organization. Our unique skill set and mission-driven mindset drive our passion to help organizations become the best versions of themselves.

3. Who are their clients?

Understanding the types of clients an AMC works with will help you determine if the AMC’s expertise is right for your organization. Some AMCs only work with a specific industry or type of client; others apply their expertise across industries. Some only work with associations, and others work with both associations and non-profits.

Abacus works with associations and non-profits across a variety of industries. The common thread among our clients is they have revenue sources (or the goal to create revenue sources) outside of membership fees and in-person events. We feel strongly that revenue diversification is crucial to the stability and sustainability of organizations, and only work with clients who share this belief.

4. What technology and software do they use?

Implementing the right technology and software can be a game-changer of your organization, and your AMC plays a huge part in influencing the tech stack you use. It’s imperative you understand the technology they use (and why), their views on innovation, and whether they receive kick-backs or incentives for recommending software.

Abacus includes the costs of technology and software in our management fees. Why? Because we know how impactful the right tech stack can be for your organization and don’t want our clients missing out on impactful advancements because of budgetary concerns. We work with you to determine the right mix of dedicated and shared resources and ensure that your organization is innovative, forward thinking and your data protected. Any benefits we might receive from recommending software to you are passed along to your organization.

5. How do they structure fees and what’s included?

There are many ways that AMCs structure their fees:

Hourly based fee. You are charged based on the anticipated hours that it will take the AMC to perform the agreed upon scope of work. Your monthly fee may fluctuate based on hours used and there is a risk that you’ll go over each month.
Fixed fee. You are charged a flat fee that covers all the work in the agreed upon scope of work. The fee is predictable and does not vary month-to-month.
Hybrid fee. You and the AMC agree on a fixed base fee, which usually covers the cost of the dedicated team, but may also include some shared services. An hour fee is charged for all services beyond the services covered in the fixed base fee.
Revenue / Profit Share. Under this structure, the AMC charges a percentage of the organizations revenue (or profit) as its fee. It may be a flat percentage or include tiers as the organization grows.

Always read the fine print to fully understand what the agreed scope of work covers. Many AMCs charge additional fees for technology, photocopying, postage, graphic design, website support, and other items considered variable or as an “expense.” When evaluating an AMC’s fees, make sure you’re including all of the additional costs as well.

Abacus charges an all-inclusive management fee (structured either as a Fixed Fee or Revenue Share), which includes your dedicated team, all shared services, software and technology to run your organization, and all the expenses associated with day-to-day operations. Our monthly fee covers everything – no surprises.

6. Can I keep my people?

If you are transitioning from another AMC, you’ll need to check your current Management Agreement. Many AMCs prohibit clients from directly hiring their team members, even if that individual is serving as your Executive Director.

If you have never used an AMC before, you’ll want to confirm that your current team (assuming you want to keep them), can transfer to your AMC (and whether you’ll be able to retain that team should you decide to leave).

We look forward to working with your team and our preference is that they become Abacus employees, which provides them access to our benefits, professional development, and resources. But don’t worry - Abacus will never stop you from keeping your team. If you love your team, and you decide to change to another AMC or take your operations in-house, you are free to take your team with you.