Wipfli LLP published the results of its 2024 State of Associations Report, which pointed to optimism and an openness to mergers among such industry groups.

The report shares insights into current market challenges, financial optics and skillset evaluations and long-term growth strategies.

The results indicate that associations remain financially optimistic, with 99% of respondents either optimistic or cautiously optimistic about finances. Additionally, 80% plan to increase technology spending.

The survey highlights that associations are focused on adapting to market challenges, with 77% expecting mergers or consolidations within the next two to five years. Common concerns include adaptability in changing scenarios, revenue streams, recruitment, retention and technology investments.

“The biggest takeaway from this report is that associations know that they need to rapidly develop their tech spend while they have the cash and space to do so,” Wipfli National Leader for the Nonprofit, Government and Education Practice Kathleen DuBois said in an Aug. 20 news release.

Currently, 93% of association respondents rely on business analytics for data-driven decisions, and 86% express satisfaction with existing analytics solutions. Additionally, 80% of respondents plan to increase technology budgets, with 23% of those aiming to boost data analytics efforts.

Many associations are also focusing on spending for AI and CRM, the report detailed. In particular, trade associations and those with annual revenues under $250 million are prioritizing CRM investments, while professional associations and those with revenues exceeding $250 million are investing in AI.

“Membership and finances are relatively stable or growing – now is the time to invest in new technologies and take advantage of the data they’re collecting,” DuBois added.

Associations emphasized challenges related to talent retention, succession planning and adapting to rapidly changing conditions in the report.

For more details about the Wipfli report, click here.