Association leaders are feeling optimistic about their finances and investing in technology, but also thinking about opportunities to partner and even merge with other groups, according to a new survey.

State of Associations, published last month by advisory and accounting firm Wipfli LLC, is based on a survey of 228 association leaders conducted in May. A sizable majority—80 percent—say they plan to increase their spending on technology in the coming year, with a particular focus on data analytics, AI, and CRM. 

“Leaders are becoming much more aware of the rapid pace of technology and how that affects the business of the association,” said Kathleen DuBois, national industry leader, nonprofit, government, and education practice at Wipfli. “Leaders are saying, we can use this technology as an enabler. When we’re investing in the technology infrastructure in our association, we’re investing in our membership and better able to meet their needs.”

That plan for more tech spending is connected to overall improved financial confidence. According to the survey, a large majority (83 percent) of leaders say their association’s “financial viability” is somewhat or much higher than it was five years ago. That said, leaders also say they are open to the kind of consolidation that has typically happened during an economic downturn. Nearly half of the respondents (48 percent) say they are somewhat likely to consider “merging or consolidating” with another association in the next two to five years; 30 percent say they are very likely to do so.

DuBois said that Wipfli is still exploring the rationale behind leaders’ responses around mergers—the enthusiasm is more pronounced among professional associations and those with annual revenue of more than $250 million. But she noted that the interest in mergers is more about the pursuit of strategic advantages than economic anxiety.

“They’re asking, how might we as like-minded organizations, associations that serve a similar constituency—how might we partner up?” she said. “What we’re discerning from the feedback is a movement toward the strategic and deliberate…. Pooling resources can influence advocacy for the mission of the associations. It can help expand an organization’s membership, increase benefits, and streamline overall governance.”

Another pain point expressed by leaders in the survey was a need for increased agility. “Agility to adapt to an ever-changing environment” was the most commonly cited challenge (38 percent), a problem that’s tied to struggles to recruit and retain talent. Thus far, associations have been loath to automate processes that might assist with productivity. According to the report, “only 11% of associations said they use automation to address staffing challenges, which presents an untapped opportunity.”

DuBois said that association leaders are likely looking at technology tools as a way to gain an increased ability to adapt.

“Agility starts with the executive team at the organization, and that includes the board of directors,” she said. “It means that there is a solid strategic plan that includes a strong technology innovation plan to go hand in hand…. Our interpretation is that when the organization has a strong framework and a culture of technology innovation, they’ll be able to pivot as they see opportunities that require rapid response, and also course-correct quickly along the way.”