2020 - CHALLENGES AND HURDLES FOR ASSOCIATIONS IN TIMES OF COVID-19 - JOINT SURVEY
Analysis by Deloitte, FAIB Associate Member

In 2019, FAIB in collaboration with Deloitte, had issued a survey with respect to the financing structure of (International) Non-Profit-Associations (I)NPA). Given the turbulent times, we believed it might be worth looking into how this funding would be affected by the pandemic crisis in the near future. Therefore, at the end of 2020 we issued a new survey: “Challenges and hurdles for associations in times of COVID-19”. The below results indicate the mood and temperature amongst almost 50 member (I)NPAs.

Digitisation

Since the pandemic crisis pushed us all to execute our jobs from home, the digital flexibility and agility of (I)NPAs has been tested thoroughly. Most of the respondents were able to transfer their organisation into a digital work environment. 33 % found this very easy, whilst 16 % discovered that their current processes weren’t digital at all and had to conquer some challenges at warp speed.

Membership fees

Since most of the associations issued or received the basis of the financial funds prior to March 2020, ‘only’ 27 % of the respondents believed that their income from membership fees might be affected in 2020. This percentage increases drastically to almost 48 % when (I)NPAs reflect on 2021. The majority believes that the loss of financial resources will remain below 30 % of the original funds, however 15 % expects the damage to be between 30-50 %!

Other resources

A more differentiated result shows when we reflect on the other resources of income (I)NPAs might have. Over 53 % of the respondents expect to be impacted on this level. Most of the missed resources would be derived from events and congresses that couldn’t be organised. 5 % of the (I)NPAs will be impacted over 75 %, however most (I)NPAs will be able to keep the damage below 30 % of their usual other resources.

Support

Only 5 % of the respondents have used governmental support related to COVID-19 measures such as temporary unemployment.

Monitoring

It’s a relief to see that during these uncertain times, 84 % believes to have a good sight on the cash flow and its forecast. However, 53 % of these (I)NPAs still uses spreadsheets as a basis to keep track of this system, whereas only 9 % claims to rely on more specific dashboarding next to the bookkeeping itself.

The above analysis confirms most tendencies we notice amongst our (I)NPA clients at Deloitte as well. More than ever, members question the value of the return they derive of paying a membership fee. The risk of losing members hits (I)NPAs at the heart of their financial structure. Not only financially, but overthinking their purpose and value-creation for their members.

How can Deloitte assist you?

At Deloitte, we believe that during these unprecedented times, dashboarding and financial advisory is more important than ever. Building up this information, straight from the bookkeeping is key in order to have a trustworthy dashboarding tool. Don’t hesitate to reach out to Karel Van Bockstael, Senior Manager at Deloitte Accountancy, to have a conversation on what this could mean for your association.