Creating Financial Stability
When the Association of Water Technologies (AWT) joined MSP as a client in 2005, it had a budget of $900,000 and reserves of $75,000. The association realized that it needed to be more financially stable—which would require increasing its reserves.
MSP began by reviewing AWT’s financials and discovered the following:
- AWT was heavily reliant on membership dues and annual convention attendance, and those areas were seeing steep declines.
- AWT was at financial risk from having too much income generated from one area.
- AWT had other program and service areas (e.g., publications, certification, online learning) that had the potential to provide substantial revenue; however, these areas were not being utilized and promoted to their best advantage.
- AWT was undercharging for some of its most valuable products and services.
MSP worked with AWT’s board of directors and volunteers to develop a plan to incrementally raise and review fees over time while promoting all of its programs and services more effectively. Additionally, a policy for financial investment and increasing reserves was created.
Today, AWT relies on four major income streams—dues (20%), events (40%), advertising (25%), and bookstore/certification/other (15%). AWT is now a $2 million organization with $1.5 million in reserves. These reserves allow the association to continue to invest in the development of new programs and services that bring added value to its members.