In this issue
GMP Conducts Thorough Review of AMS Systems
Industry Insights: Impact of Federal Policy Changes on Associations
Protecting Nonprofits: Coalition Advocates Against Tax Reform Risks
Best Practice: Financial Reserve Policy
Resources for Your Financial Health
Empowering Our Clients With Dedicated Teams and Expert Support
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Welcome to our newly redesigned website! The new site offers a fresh, modern look and enhanced functionality. With improved navigation, updated content, and a user-friendly interface, our website is designed to provide a seamless experience. We invite you to explore the features and learn more about your management partner here at www.gmpartners.org.
GMP Conducts Thorough Review of AMS Systems
At GMP, we continuously seek ways to leverage technology to enhance our services and client experiences. As such, last month, we distributed a Request for Proposal to all companies that provide association management system software to discover options that enhance the member experience for our clients. In April, a diverse subgroup of GMP’s team will preview demos of five AMS systems we believe have the potential to streamline operations, improve efficiency, and provide additional member value for our clients. The result will be a list of AMS systems at various levels of functionality and price points that can meet today’s needs and evolve as needs change. Once our assessment is complete, we will share information to help you determine whether a new solution exists for your AMS strategy.
INDUSTRY INSIGHTS: Impact of Federal Policy Changes on Associations
The American Society of Association Executives (ASAE) recently launched a weekly pulse poll designed to track the evolving impact of federal policy changes on associations. Their goal in conducting these polls is not political; it is to serve the association community to the best of their ability by connecting directly with association leaders nationwide to gather the data. The hope is that the results may help organizations navigate these shifts while continuing to advance their missions.
ASAE’s Part I poll focused on general impact to associations given the recent federal funding and policy shifts. Part II poll focuses on the financial impact, the actions taken by associations facing challenges, and any effects on mission delivery.
The polls are distributed to 3,011 CEO and Executive Director members of ASAE, representing both associations and association management companies (AMCs) of which GMP is one. Because we are a member of ASAE and participate in the surveys, we are able to receive the full reports of the results.
There are currently two reports available, and they will be posted to the GMP website. Your Executive Director also has access to each weekly pulse results as they are distributed.
Part I: Impact of Federal Policy Changes on Associations
Part II: Financial and Mission Impact of the Federal Funding and Policy Shifts on Associations
PROTECTING NONPROFITS: Coalition Advocates Against Tax Reform Risks
ASAE has organized a Community Impact Coalition—now comprising over 80 organizations—is working with top D.C.-based lobbying and PR firms to ensure lawmakers understand the vital role of nonprofits and the risks of jeopardizing their tax-exempt status. The AMC Institute and some of our AMCI members belong to the Coalition and are actively engaged in representing the interests of our community.
The Coalition’s communications strategy is currently focused on educating policymakers about the nonprofit sector’s contributions to society, industries, and professions. Its goal is to ensure that before Congress finalizes any proposals, nonprofit tax exemption remains off the table. That effort is even more important considering two recent developments:
- Tax Legislation: Last week, House Ways and Means Republicans held two days of closed-door drafting sessions to outline the tax provisions for Congressional Republicans’ reconciliation bill. Negotiations with Senate Republicans on a tax plan are expected to follow shortly.
- Media: The Wall Street Journal recently published an op-ed urging Congress to increase taxes on the tax-exempt sector, specifically calling out the Coalition by name. In response, the Coalition submitted a Letter to the Editor to correct the op-eds misleading portrayal of our sector, which was published recently.
The Coalition is collecting real-world examples of the positive impact of nonprofits—to highlight the potential consequences of losing tax-exempt status. If your organization is interested in submitting a story, please send it to [email protected], and we will forward it to the Coalition for broader use.
BEST PRACTICE: Financial Reserve Policy
GMP encourages clients to have a written financial reserve policy as part of their financial strategy. The purpose of a Financial Reserve Policy is to:
- Ensure that your association has adequate funds available in the event of an unanticipated catastrophic event or business situation that may significantly reduce revenue and threaten your financial viability.
- Cover unbudgeted and extraordinary expenditures brought about by unanticipated challenges and as a source for emergency funding.
- Enhance the purchasing power of funds held for future expenditures and maintain the financial stability of your organization.
- Provide a source of capital for the research and development of new products and services and reinvest in the organization’s mission and activities.
We encourage all members of the Board of Directors to review their reserve policy annually and, as you do, think about the following:
- Does your target reserve level still meet your organization’s needs?
- Do any new risks exist that could impact your financial reserve target?
- Do you have guidelines for your reserves if they come in above/below the target?
- Are you investing your reserves to maximize an ROI for the organization?
Resources for Your Financial Health
Although GMP is not a financial advisor, we keep our fingers on the pulse of trends that can assist our clients with their financial health. One of GMP’s valued vendors, Merrill Lynch provided the following video, “Investment Management for Nonprofits,” which highlights the process that Merrill employs to help them, as investment advisors, allocate nonprofit organizations’ investment accounts properly. In addition, this video contains their financial outlook for 2025.
In addition, GMP hosted a special webinar presented by Thomas Rocco, First Vice President of Merrill Lynch, titled Financial Empowerment for Nonprofits, which was filled with insights on optimizing treasury management—from general operating accounts and Money Markets to High-Interest Savings, Treasury Bonds to full-fledged stock investments and fiduciary oversight.
We hope you find these resources valuable as you continue the path of your Board’s fiduciary responsibilities.
Empowering Our Clients With Dedicated Teams and Expert Support
GMP offers our client partners with the best of both worlds: dedicated teams tailored to their specific needs and access to over 40 association professionals with deep expertise in all aspects of association management.
Each client is assigned a dedicated team that understands the unique goals and operational needs of their clients. These teams specialize in areas such as membership management, event planning, financial oversight, and strategic development, ensuring personalized service and alignment with the client’s mission.
Beyond their dedicated teams, GMP possesses an extensive network of over 40 professionals providing specialized skills and knowledge for any challenge.
GMP believes in building partnerships based on trust and collaboration. By combining dedicated teams with access to a deep bench of talent, we empower our clients to achieve their goals and thrive in a complex environment.
Get to know Team GMP.
Thank you for taking the time to read our newsletter. We look forward to continuing our journey together and achieving new heights of success. Please do not hesitate to connect with us at [email protected] or [email protected].