Latest News › Who's weathering the recession well?
Report shows larger professional bodies faring better
According to our report Financial & Operating Ratios
for Professional Bodies 2009/2010, there is a fairly consistent and positive
relation between the size of professional bodies and income per member. For instance:
- Less than £1M turnover: £231 income per member on average
- £1-10M turnover: £430 income per member on average
- Above £10M turnover: £929 income per member on average
This either indicates a higher fee subscription rate or
more alternative sources of income for larger professional bodies – such as
education/training/CPD provision, investment/interest, events and publications.
The chart below shows how the alternative income sources explanation is
particularly pertinent for the largest professional bodies.
Income from member subscriptions as % of
Success of larger professional bodies in dealing with the
recession is also reflected in their profitability with the above three groups
achieving profit to income of respectively: -1%; 1% and 4% on average.
However this relationship has not always held. It
reflects the recession in that the reserves to expenditure ratio shows middle
sized professional bodies to be healthier if reserves standardised on
expenditure levels is considered. The middle level professional bodies have
reserves equal to 12.5 months of expenditure on average, compared with the largest
professional bodies at 7.6 months and the smallest ones at 7.9 months.
Find out how your organisation compares with other
Posted on 11 May 2012
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