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Voluntary Starvation!

A recent newspaper report in Calgary described how “cash-strapped community associations are being further drained as the rise of natural gas prices continues to dent their budgets.” The article described the tribulations of one association that houses a gym, a social hall, a day care and an out-of-school care program. It then refers to another community association “eight blocks away” that is “also struggling to pays its bills”.

What is the rationale for two community centres just 8 blocks apart? It is hardly surprising that two facilities in such close proximity are struggling financially.

While the particular circumstances are different, there are numerous situations where associations are territorially divided and most or all are struggling. Organizations in these circumstances must consider some form of strategic restructuring (alliances, amalgamations, etc.) if they hope to survive over the long term. 

In many cases, there are insufficient resources to support so many neighbouring organizations attempting to create and offer a full range of duplicated services. However, the focus on “turf” and “interests” keep many such organizations from discussing strategic restructuring options to better efficiency and effectiveness.

Economics will dictate change now – managed by the organization – or a slow lingering demise dominated by a continual focus on how to get more resources.

This circumstance is affecting all kinds of charities, professional associations, trade associations, and common interest organizations. It’s time for a reality check!

Sometimes association and non-profit staff, volunteers and other stakeholders lose touch with the bigger picture because they are so caught up in what is happening in the trenches. Our intent in offering the Reality Check feature is to get these individuals to step back and re-think their existing views. 

 

Association Xpertise Inc. (AXI) is a full-service company providing consulting and other services to associations and non-profits.    Details

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