Are Chapters Worth the Effort? Calculating Chapter ROI
Only 4% of survey participants use some type of method to calculate the return on their investment (ROI) in chapters. Instead of using formal ROI calculations, this small group is more likely to rely on other metrics, for example: Volunteer or program outcomes, such as advocacy efforts and participation by chapter members in HQ events and programming.
Start your own ROI calculations with the data you already have and the information you already know (or can easily find) about your chapters. Even assigning a value to only one chapter activity can show your association’s leadership the return on investing in chapters.
- Only 4% use some type of method to calculate chapter return on investment (ROI).
- Only 18% recognize the financial contribution of chapters in their annual budgets.
“…the current environment at our organization is such that chapters are considered so integral to the organization that they have an entire goal included in the national strategic plan. Chapters implement policy and do all the state-level advocacy and even some federal advocacy, so they are considered very valuable these days. ”
These numbers have barely budged since the 2016 Report. To develop a financial framework that associations can use to place a monetary value on chapter activities, Mariner launched the Chapter ROI Project. This framework eventually became the Chapter ROI Valuation Matrix.
Using an ROI Matrix Shines Light on Chapter Value
In a Billhighway/Mariner webinar, the Global Business Travel Association (GBTA) explained how they used chapter data and the ROI Valuation Matrix to assign a dollar value to chapter activities and rationalize the resources allocated by GBTA to its chapters. This effort resulted in a substantial increase in the annual chapter support budget.
GBTA’s ROI valuation uses four methods to assign value to a chapter activity:
- Identify the direct value of the activity.
- Price the service.
- Price the volunteer contribution.
- Identify the indirect value of the activity.
Go Deeper on Chapter ROI
Download The Report
Mariner Management, in collaboration with Billhighway, launched this second edition of the Chapter Benchmarking Report. The report was designed to gather industry data that helps associations benchmark their chapter programs against others. We also wanted to fuel the dialogue on what makes an effective chapter—and an effective chapter/association relationship.