Coronavirus Tracker: Associations Tap Reserves to Weather COVID-19
June 15, 2020
Current updates on association response to the global COVID-19 crisis, along with a roundup of conference, travel and business news and information.
Tapping Into Reserves
Many organizations need financial assistance to ride out the coronavirus pandemic. For some associations, that means tapping reserves.
About seven in 10 associations expect to dive into their reserves to offset losses from the COVID-19 crisis, according to the latest data from the ASAE Research Foundation’s weekly Association Impact Snapshot survey. A majority of 108 respondents said they expect to use less than a quarter of their reserves: 30 percent said they will use between 10 and 24 percent of those funds, and 27 percent of respondents will need less than 10 percent of reserves. But some organizations may need to go deeper: 11 percent said they may use 25 to 49 percent of their reserves, while only 4 percent anticipate using half or more.
Cancellation and modification of events are driving much of the financial strain associations are facing. A quarter of respondents say they project a loss of 25 to 49 percent of total annual revenue in 2020 as a result of disruptions to their events. And 11 percent expect a loss of 50 to 74 percent.
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