1. Association Management Challenges and Opportunities for ITS America Chapters Thomas E. Kern Executive Vice President, ITS America November 2008

2. ITS America Chapters Mission: to promote the effective deployment of intelligent transportation systems (ITS) to improve the safety, reduce congestion, promote energy savings, and protect the environment. Unique position: enables state and regional chapters to build a local network of peers from all sectors to exchange information and share ideas and best practices that advance ITS.

3. ITS America Chapters There are currently 24 ITS America chapters representing 35 states A list of these chapters is at: http://www.itsa.org/chapter_roster/c427/About_ Us/State_Chapters/Chapter_Roster.html

4. ITS America Chapter Services Direct link to national organization and national exposure. Chapter rebate program – each ITS America member* can choose up to three state chapters to receive a $100 rebate from ITS America. Group tax filing through ITS America. Chapter marketing through ITS America website and publications. Exchange information and best practices with other ITS America State Chapters. Direct link to ITS America Board of Directors via State Chapters Council. Annual State Chapter Strengthening Workshop held in conjunction with the ITS America Annual Meeting. Free general liability insurance and discounted directors and officers insurance. *Depending upon the dues level paid.

5. An Important Choice Many ITS America chapters are run by a cadre of volunteers A handful are run by volunteers along with a third party service provider or association management company What is right depends on each chapter’s circumstances, but it is always worth while to look at one’s options

6. When Considering Association Management Services What are the Chapter’s Demographics The chapter’s revenue base: how many members does it have and how much is it able to generate yearly in dues and other income? What are the core services it is currently providing to its members? What are its current expenses to maintain the chapter and provide these services? What additional services would it like to provide if resources were available? A checklist on the chapter’s financial health can help frame its options.

7. Core Services an AMC could Provide Membership Recruitment – Website design, development or maintenance – Database management – Dues Collection (we emphasize pro-active dues collection to help keep the organizations solvent!) Membership Education – Newsletters – Student Education – Member Education (workshops, courses, annual meetings, conferences, etc.)

8. Core Services an AMC could Provide Financial Management – Non-profit status (filing, insurance, taxes, etc.) – Budget Oversight (preparation, tracking, quarterly or yearly summaries, etc.) – Daily Financial Management Organizational Management – Record Keeping (meeting minutes, filing system, etc. – i.e., we provide the “institutional memory” that sometimes is lost when key members leave) – Physical Office – phone/fax/email where members can call with needs/questions/etc.

9. Core Services an AMC could Provide Organizational Management (continued) – Board Administration – administrative support to Board of Directors (annual reports, election coordination/oversight, presentation assistance, background/issue research, etc.) Outreach and Advocacy – Outreach to the Public, Media, and potential members – Advocacy (information-based engagement) in the legislative area – Other forms of engagement

10. Hiring an Association Management Company Prepare the Request for Proposal (RFP)— templates, sample and online RFPs (complete with instructions) are available at www.amcinstitute.orgwww.amcinstitute.org Distribute the RFP to vendors (lists available at the AMC Institute, in the booklet handed out at the Strengthening Workshop, and via local networking in a chapter’s geographic area)

11. Some Questions to ask in an RFP to Help Estimate Costs What is the typical range of costs to provide core administrative services for the chapter? Services would include: – Taking calls under the umbrella of the chapter – Finances – Basic communications/website services – Meeting management (Board meetings, Annual Meeting) – Other If Chapters were to start small with these arrangements, what would the levels of service look like? As additional or tiered services are made available, what would the costs associated with them be? – Additional communications, Additional meetings, Advocacy, Other

12. Hiring an Association Management Company Evaluate the proposals Years of Experience Client Mix Client loyalty Fees Tiering of services Negotiation skills with vendors Staffing options Capability and experience Leadership

13. Hiring an Association Management Company Notify all candidates once a decision is made Negotiate the agreement with the preferred provider If not mutually satisfactory, engage the second choice

14. Tips in transitioning to an Association Management Provider Assign a point person Obtain the provider’s transition checklist and review and agree on doable time frames Inventory the chapter’s documents and systems to facilitate the transition Undertake a transition in stages, depending on the time of year, financial constraints, priorities, etc Staging order might be membership, finances, education/communications, governance, and advocacy Anticipate problems and the reality of time needed

15. Looking Ahead What should the future relationship of ITS America and its chapters look like? What are other association models? programs membership finances Should ITS America provide association management services to those chapters that request it? Other questions?