By Carolyn Shomali, PAR Director of Content
4 Minute Read

Tariffs are on, then off. Federal funding freezes, then resumes. Executive orders are announced, then blocked. The current economic and political landscape is shifting rapidly, and associations are working to understand how these federal changes will affect both their operations and bottom lines.

Add in personal anxieties about policy changes and job stability, and it may feel like the ground has never been more unstable for the association community.

While the stakes are undeniably high - especially for associations grappling with significant shifts in policy and funding - it's helpful to step back and consider the broader picture. At their core, executive orders, DEI rollbacks, and grant instability share a common thread with a worldwide pandemic, natural disasters, and rapid technology advancements: they are all sources of business uncertainty, challenging associations to adapt.

That was the conclusion reached by association executives and professionals at a recent Professionals for Association Revenue (PAR) community roundtable on business strategies in uncertain times. Neal Couture, FASAE, CAE, the Chief Executive Officer of the American Society for Nondestructive Testing (ASNT), says combating uncertainty – regardless of the cause – begins with advanced preparation.

“The value of risk management and risk planning is not so much in the plan itself, it’s in the process of planning. The process of planning causes you to ask certain questions that you may not otherwise be asking yourself,” he says. 

As an example, think back to 2020 and the upheaval to association events caused by COVID-19. It’s unlikely that associations had “pandemic” on their risk management plans, but a well-designed risk strategy would have anticipated the effects of any kind of major event disruption. The key to risk management is not predicting the cause, but rather scenario planning for the impact.

“It's really important for us to be able to scenario plan because otherwise what you're going to be doing is you're going to be reacting,” Couture says.

Preparedness Can Begin Now

If your association is facing uncertainty without a risk management plan in place, now is the time to act. Start by identifying key stakeholders who need to be part of the conversation (Couture advises including the board) and use the current state of uncertainty to scenario plan for potential impacts. Current challenges will affect associations differently depending on their industries, but if large financial implications seem likely - such as reduced event attendance or funding cuts – start considering solutions now.

“You may not be able to save your event. In that case, what you're doing is risk planning for the company. You're trying to figure out, ‘What are the things that we need to do to mitigate the loss in revenue stream, do we have the ability to expand or focus on other revenue streams and diversify our revenue,’” Couture says.

Robb Lee, the SVP Integrated Strategy of Yes&, reminds associations that not all uncertainty carries equal weight. Instead of trying to tackle every challenge at once, focus on the most pressing issues. Then, review your product portfolio to identify potential revenue gaps and explore ways to strengthen your bottom line.

“Do I have other products in my pipeline or aspects of other products in my pipeline that I can spin up?” Lee asks.

If your portfolio lacks these kinds of products, it’s a signal to strengthen that area for the future.

Don’t Do It Alone

Associations have largely shifted from transactional sponsorships to year-long engagements with partners, and in times of uncertainty these relationships are more valuable than ever. While industry partners are facing their own uncertainties, they also have resources that could strengthen your association’s response. Most importantly, they are invested in your success.

Sean Soth, EVP of Strategy and Global Partnerships for the Society for Clinical Research Sites (SCRS), emphasizes the importance of open communication with your partners not only to share your progress but also to identify solutions together. It could be as simple as discussing the scenario of lower event attendance and collaborating on how to create a unique experience for the smaller group of attendees who will still be there.

“We are the leading voice or community for the market. And in that role, you have this unique alignment with what our partner audiences may be looking for or need,” Soth says.

Finally, in times of uncertainty lean into the most valuable aspect of the broader association community – the community itself. The National Council of Nonprofits, for example, is working to keep associations informed about the impact of executive orders and funding changes, as well as ongoing court challenges and legal updates. And, associations can explore collaborative opportunities together as outlined here by Dan Cole, the Sr. Director Exposition Sales for the Audio Visual Integrated Experience Association (AVIXA).

“There are all sorts of opportunities for revenue generation from events whether it’s co-location, cross-promotion of each other’s events, or offering discounts to attendees who register for both,” Cole says.

Uncertainty is not new territory for associations. It’s simply presenting itself in a different form. The solution remains the same: a proactive, adaptable risk management plan. Now is the time to strengthen that foundation and prepare for inevitable challenges ahead.