Some Orgs Facing Financial Strain, Shifting Policy

|April 4, 2025|

49% say no immediate federal impact… but that’s only part of the story.

This week, ASAE released a Member Update shedding light on the growing financial strain associations are facing — and it’s worth a pause.

Looking over the shoulder of a businesswoman in a modern suit sitting at a Washington, DC, cafe table, surprised and concerned, opening a newspaper to reveal a hidden, glowing graph indicating financial failure with a chart revealing failed finances, set against a background of blurred city street, dramatic lighting, film noir.With budget pressures rising, policy uncertainties looming, and new AI guidelines being introduced, now is the time to take stock of what’s happening across our community and what it means for your organization.

Here’s what stood out:

Financial Pressure Is Building, Especially for Some Sectors

According to ASAE’s second pulse survey, associations are adapting to shifting federal policy and funding environments in very different ways. While nearly half (49%) of associations report no immediate financial impact, that still leaves a significant number facing challenges.

What’s more telling is the 35% who are seeing slight negative impacts, and the growing group—especially in healthcare and education—experiencing worsening financial conditions.

  • 52.8% of healthcare associations
  • 45.5% of education associations report a decline in financial stability.

Other sectors are experiencing mixed results, with finance, business, and insurance reporting both slight improvements and setbacks.

The takeaway?

This isn’t a one-size-fits-all crisis. Also, it’s probably a smart time to reevaluate financial strategies.

Revenue Declines Are Hitting Core Programs

The report highlights some of the clearest signals yet of where the financial strain is showing up:

  • Sponsorship revenue is seeing the steepest drop, with an average decline of 25.9%
  • Meetings revenue is down 23.9%
  • Membership revenue has declined 16.1%

These numbers suggest that many associations are seeing not just one area struggle, but multiple pillars of traditional revenue are experiencing pressure at the same time.

If you’re noticing a similar pattern in your own numbers, you’re not alone. This is a systemic shift, and it calls for both short-term response and long-term rethinking.

AI Use at Events Comes Under New Guidelines

In a sign of the times, ASAE also announced a new policy around the use of AI notetaking tools at its meetings.

To balance the benefits of AI with privacy and security concerns, ASAE is requiring that AI transcription or notetaking tools may only be used with prior approval from both the meeting convenor and attendees.

This policy adds a new layer of planning for event professionals and underlines the growing need for ethical, transparent use of AI within member environments. It also raises broader questions:

  • How do we embrace AI without sacrificing trust?
  • What are the guidelines we need to put in place?

For associations eager to innovate, this is a crucial conversation to be part of.

What This Means for Leaders

So what should association executives be thinking about right now?

Here are three areas to reflect on:

1. Financial Resilience Isn’t Optional Anymore
It’s time to revisit assumptions about revenue diversity. If you’re overly reliant on sponsorships or event income, it’s worth exploring alternate value streams—from micro-memberships to digital products and licensing.

2. Advocacy Still Works
One bright spot in the update? The results of ASAE’s 2025 Fly-In. Association leaders showed up on Capitol Hill to advocate for legislation like the Freedom to Invest in Tomorrow’s Workforce Act, and their efforts helped protect the role associations play in driving education and workforce development.

3. Technology Must Be Paired with Thoughtful Policy
AI tools can enhance accessibility and efficiency, but not without intentional boundaries. The new notetaking guidelines are a signal that associations must lead on both tech adoption and tech ethics.

Association Chat, Helping You Stay Ahead

At Association Chat, we believe conversations like these are essential.

Whether you’re leading a large international trade association or a professional society with a super lean team, we’re here to help you connect the dots and think about those bigger questions:

  • How are you preparing your team for what’s next?
  • Where is the greatest opportunity to reinvent, not just react?
  • What does leadership look like when everything is changing?

The days of “business as usual” are over (one might ask were they ever really here to begin with?).

In times of disruption, there’s opportunity for new ideas, new connections, and new models of impact.

We’ll be following this story, and many others, as they continue to unfold.

If you have thoughts, insights, or questions sparked by this ASAE update, join us in the conversation on Association Chat’s LinkedIn page or drop us a line.

And make sure you are subscribed to the Association Chat Magazine! The next issue comes out in May 2025!