What is emergence? It’s what happens when parts come together in such a way that the result is greater than their sum. Something new emerges.
For non-profits of all kinds, the mission is primary. And nothing is more central to the mission’s success than leadership keeping an eye on revenue.
For decades, non-profit revenue trends have been moving in one direction. In the 1950’s, 95.7% of revenue came from one source: membership dues.
Source: ASAE
Membership will always be the key that opens the door to what any non-profit is all about. But in line with that recognition, ancillary revenue sources have emerged in subsequent decades as the way to increase membership services without putting the entire burden on increasing membership dues.
The savvy Executive Director will rally association management and staff to integrate as many non-dues revenue sources as make sense for the organization. Openness and willingness to explore should be the rule. The question should not be why? But why not?
The charts below show that the percentage of dues revenue has decreased by more than half over the intervening decades. This has given way to valuable non-dues revenue sources like advertising, sponsorships, certifications, grants and online learning.
Source: ASAE
The word integrate above is not neutral. In the decade of digital transformation, there are great benefits to bringing as many of the software elements that manage these non-dues sources into the same ecosystem where membership is managed. When that happens, something new emerges.
The brain is made up of individual neurons. When there are enough neurons and they get together in a certain way, consciousness emerges – something different in kind from the neurons themselves.
The biosphere is made up of plants, microorganisms, insects, animals, and natural surrounding elements – air, water, and soil. When they get together in a certain way, the thriving theater of life emerges.
The human body is made up of various organs and systems (like the circulatory, respiratory, and digestive systems) that work together to maintain health and function. Each organ has a specific role but relies on others to perform optimally.
From a collection of different instruments in the hands of their players and a composer’s scribblings, a symphony emerges.
The ecosystem of revenue-producing offerings managed by its processes and digital applications advances the association’s mission.
Not sure where to start?
Diversify. Unify. Something new will emerge.