From the President: New Research and Tax Implications Impacting Associations

Each August, approximately 5,000 association management professionals and industry partners convene at the American Society of Association Executives (ASAE) Annual Meeting and Expo. Members of the Barcami Lane team attend this annual event, which celebrates excellence, provides vital training, builds connections, and showcases cities as event destinations for the benefit of association professionals and ultimately the associations they manage.

At this year’s event, which occurred this past week, ASAE featured a new research report on the economic impact of associations and brought our attention to expiring tax code that could threaten nonprofit revenue, both of which I wanted to share with our association clients.

According to the recently released research report, “The Power of Associations,” from ASAE and Oxford Economics, association events generate $43 billion in spending annually in the U.S. with nearly 52 million individuals participating in association events. Associations boost America’s economy and generate opportunity in every state. This timely research is necessary to demonstrate to local, state, and federal governments, as well as the general public, the power of associations on the economy. The work of each of our client associations is imperative for the professions, industries, and people you represent. The data featured in this report quantifies these statements and truly demonstrates the power of associations.

ASAE’s Senior Vice President of Public Policy Mary Kate Cunningham, CAE, briefed attendees on tax cuts expiring in 2025 that could have a significant impact on association event revenue. As shared at their August 11th breakout session, “legislators and policy think tanks have called for taxing all tax-exempt organizations across the board, applying the 21% corporate tax rate to all non-donation revenue streams.” This would include member dues, sponsorships, investment income, and educational program revenue.

As this topic develops, we’ll be certain to share updates with our clients on how you can advocate for the association community and help protect the influential and society-enhancing work your organizations contribute.

Watch this space for updates and calls to action.

Until next time!

Cambria Happ, MPA, CAE 

President