Guest Author: Jessica Irizarry, ASAE Center
The decision to close a chapter can be extremely difficult to make. Association executives should look to chapter performance, value, and engagement to determine if a local chapter is no longer viable.
The decision to close a chapter is not one that should be taken lightly. After all, it will have a major impact on people and business operations. But if some of your association’s chapters are underperforming, it may be time to consider closing or merging struggling chapters to support the organization’s long-term survival.
There are numerous considerations to keep in mind before closing down a chapter, but a few key indicators might make the decision easier.
Finance, Governance, and Operations
Start by taking an inventory of the chapter’s financial assets. This list should include office equipment and collateral, financial investments, funds in endowments or trusts, and reserves. Alongside that inventory, consider the chapter’s debts and potential liabilities, which might include:
