For the associations positioned to weather the storm of the initial months of the COVID 19 pandemic, many are finding themselves with a bit of breathing room in terms of immediate cash flow and financial viability issues. Inevitably, many of those that were without a sufficient financial cushion or access to government supports have not fared so well. The August edition of the Association Pulse, written by The Portage Group in partnership with the Canadian Society of Association Executives (CSAE) provides the latest critical data and insights into the financial impact of COVID 19 of Canadian associations. It is based on a survey completed by 279 Canadian associations and other nonprofits between July 22 and July 30, 2020.
The data suggests that although many remain operational for now, most associations are putting less into and/or taking more from reserve and contingency funds than planned. This is highly worrying for the longer-term viability of the sector, particularly as a critical concern voiced by several survey respondents is less about how to make it through 2020 and more about what lies beyond. Many respondent comments expressed worry that the worst may be yet to come, with the true economic impact on their organzization to cocur in 2021 and 2022, once government programs and benefits have ceased and when many associations anticipate they will have utilized available reserve and contingency funds.
