Douglas OFlaherty, IOM Douglas OFlaherty, IOM
Chief Operating Officer, South Carolina Restaurant and Lodging Association

Published

October 21, 2024

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Trade associations and chambers of commerce play a crucial role in promoting economic growth, advocating for industry interests, and offering valuable resources to their members and the communities they serve. To effectively fulfill these missions, these organizations should explore sustainable revenue streams beyond membership dues that align with their mission and purpose. One effective strategy is to enhance income through non-dues revenue and affinity programs, particularly by forming strategic partnerships with allied and supplier members.

Organizations that depend exclusively on membership dues as their primary source of income face significant challenges. Membership dues have historically been a primary funding source for many nonprofits and remain a significant revenue stream for most trade associations and chambers. However, traditional membership dues models are susceptible to fluctuations resulting from economic downturns, industry consolidation, or shifts in member priorities. An overreliance on dues can lead to financial instability and constrain the organization’s capacity to invest in new initiatives or address emerging challenges.

Non-dues revenue presents numerous advantages by diversifying income streams, decreasing dependence on membership dues and alleviating financial risks. Moreover, non-dues revenue can greatly enhance the organization’s overall financial stability and capability. This additional income facilitates the expansion of services, which benefits both members and the communities and industries served.

A successful affinity program should be mutually beneficial for all parties involved, generating non-dues revenue for the organization, delivering tangible benefits to the members, and driving sales for the service-providing company. These programs generally involve collaborating with external companies to provide members with exclusive discounts, perks, or services.

You don’t need to look far to cultivate a strong affinity program for your organization. Consider forming strategic partnerships with current allied and supplier members. These members are already invested in your organization and can serve as valuable collaborators in generating non-dues revenue and expanding the services offered. One approach is through joint ventures, where organizations collaborate on the development of new products, services, or initiatives.

Additionally, securing sponsorships for events, publications, or programs can provide a significant source of non-dues revenue while also advancing the organization’s mission. By leveraging the expertise and resources of allied and supplier members, you can establish mutually beneficial relationships while adding to the financial health of the organization.

Non-dues revenue and affinity programs are vital and invaluable to an organization’s long-term success. By diversifying income sources and cultivating strong partnerships, you can improve your capacity to serve your members, strengthen your industry, and position the organization for a successful future.

About the authors

Douglas OFlaherty, IOM

Douglas OFlaherty, IOM