Introduction For associations and nonprofits, choosing the right Association Management Software (AMS) can be a game-changer. It directly impacts your organization’s efficiency, data security, financial integrity and member engagement. With a myriad of options available, including platform-based solutions built on Salesforce or Microsoft Dynamics, it’s easy to be swayed by big names. However, a platform-based AMS may not always be the best choice for associations due to specific needs and challenges. This blog will help you navigate the decision-making process by discussing key components to consider when choosing an AMS and the challenges associated with using a platform-built AMS. Key Components to Consider When Searching for the Right AMS When evaluating potential AMS platforms, it’s critical to look beyond the basics. While features like membership management are necessary, large associations should also consider three fundamental components: a strong financial infrastructure, an effective identity provider (IDP) and comprehensive data control. Let’s dive into why these elements are essential. A Strong Financial Infrastructure A robust financial infrastructure is the backbone of any successful AMS. For associations, managing finances is more than just bookkeeping—it’s about sustaining multiple revenue streams, such as membership fees, event registrations, donations, sponsorships and product sales. To handle this complex financial landscape, an AMS needs to have advanced financial management capabilities. Unfortunately, many Customer Relationship Management (CRM) or platform-based AMS solutions lack the sophistication required to manage diverse revenue workflows. They often require additional financial management tools or extensive customizations, resulting in increased costs and integration efforts. Moreover, these workarounds can complicate your organization’s technology infrastructure, diverting time and resources away from your mission-critical activities. To ensure financial integrity and transparency, choose an AMS with a built-in financial module that can seamlessly integrate with your existing systems. Look for features like multi-dimensional accounting, revenue recognition, expense management and real-time financial reporting. This will help you manage finances effectively and demonstrate financial stewardship to stakeholders. Your Identity Provider (IDP) Single Sign-On (SSO) is a well-known feature for enhancing member convenience, but the importance of a strong identity management system goes much deeper. An AMS should ideally serve as the Identity Provider (IDP) for your entire technology ecosystem. If it can’t, you may need to invest in a third-party solution like OKTA or OneLogin, which could significantly increase your annual costs. When evaluating an AMS, it is vital to determine whether identity management tools are included in the subscription fee or are licensed separately. This distinction can have a major impact on the total cost of ownership. Additionally, any IDP solution should adhere to industry-standard SSO authentication protocols like SAML, OATH and OIDC to ensure compatibility across platforms and reduce integration costs and ongoing maintenance expenses. Control Over Your Data Data is one of the most valuable assets an association possesses, making data control a crucial consideration when choosing an AMS. For many associations, the ability to manage and control data is non-negotiable due to their unique integration, reporting and data management needs. A robust AMS solution should provide a dedicated, single-tenant database, secure hosting through a reputable cloud provider and a skilled cloud operations team capable of working with clients using industry best practices. Many AMS providers fall short in these areas due to limitations in their infrastructure design. As a result, they often tout their managed services as a solution. However, in practice, these managed services may fail to deliver, leaving IT teams frustrated and unable to access and manage data effectively. To avoid these pitfalls, ensure that your AMS provider offers comprehensive data control features, allowing your organization to maintain sovereignty over its data while benefiting from secure, efficient and scalable cloud solutions. Challenges With Using a Platform-Built AMS While established platforms like Microsoft and Salesforce offer versatility and the comfort of a familiar name, they come with unique challenges for associations and nonprofits. Platform-based AMS solutions are designed to be adaptable across various industries, which can be a double-edged sword for mission-driven organizations. Here’s a breakdown of the potential challenges associated with using a platform-built AMS. Generic Approach to Association Needs Platform-based AMS solutions are designed for versatility across industries, which often means they lack the specific features required for association management. While they may offer configurations tailored to the needs of mission-driven organizations, the underlying framework is generic and built to be adapted across many different sectors. This generic approach can force your organization to compromise on meaningful processes, as the software is not specifically designed to handle the unique workflows of a membership-based organization. A purpose-built AMS like ThreeSixty is specifically designed with associations and nonprofits in mind, offering functionalities that are finely tuned to address the distinct challenges and needs of these organizations. This specialization helps ensure that your organization’s critical workflows are not compromised. Limited Relationship Logic Associations and nonprofits often manage complex relationship structures involving various constituents—members, volunteers, donors, chapters, committees, board members, sponsors, partners and more. One major drawback of many platform-based AMS solutions is that they employ basic relationship logic, often built around a simple Account/Contact structure designed for sales organizations. This limited model can leave your organization facing additional costs for customizations or risk alienating key constituents due to inadequate relationship management capabilities. Purpose-built AMS solutions, on the other hand, are designed with a deep understanding of the relational nature of associations. They offer advanced relationship structures that support the diverse and dynamic needs of your organization, helping you build stronger and more meaningful connections with all stakeholders. Association Needs Don’t Drive Platform Development Platform-based AMS solutions prioritize development efforts that benefit the platform itself, improving foundational elements that can be used across a broad range of industries. This approach often leaves association-specific needs on the back burner. Most updates and innovations are focused on enhancing the platform’s generic functionality rather than adapting to evolving member and constituent expectations. In contrast, purpose-built AMS solutions are driven by the specific needs of associations and nonprofits. Development priorities are often guided by direct feedback from association professionals, ensuring that new features and configurations add tangible value to the organizations they serve. Proprietary Programming Languages and Limited Developer Pool Platforms like Microsoft and Salesforce are built on proprietary programming languages that are not used outside of their ecosystems. This creates several challenges. Firstly, the developers working on these platforms operate in a closed environment, without the collaboration, innovation and opportunities for skill growth found in the wider technology community. Additionally, this proprietary nature means there is a smaller pool of developers familiar with the unique code types required, potentially extending project timelines and costs due to limited availability. On the other hand, purpose-built AMS solutions often use standard, widely adopted codebases. For example, ThreeSixty is built using .NET/C#, one of the most popular programming languages. This opens up access to a vast pool of skilled developers, enhancing agility, innovation and overall project efficiency. Hidden Costs of Dealing with Resellers and Third-Party Implementations Working with platform-based AMS solutions often involves navigating a network of resellers and third-party implementers. While resellers can provide valuable expertise, you may never deal directly with the source platform organization. Resellers often pass on their licensing costs to you, the association. Additionally, implementing platform solutions requires extensive configuration, which can involve hiring a third party to execute the work. This process can be time-consuming and costly, with delays arising from the need to clearly define project scope and requirements. Conversely, purpose-built AMS solutions, like ThreeSixty, are often supported by an in-house implementation team. These experts understand both the platform and the unique challenges of association clients, resulting in more accurate cost estimates, efficient timelines and successful outcomes. Conclusion Choosing the right AMS is a crucial decision that directly impacts your organization’s efficiency, member engagement and overall success. As you evaluate potential solutions, it is essential to look beyond basic features and focus on critical components like a robust financial infrastructure, effective identity management and comprehensive data control. These elements will ensure that the AMS supports your association’s unique needs. At the same time, it’s important to be aware of the potential risks associated with platform-based AMS solutions. While well-known platforms offer versatility, they often lack the specific functionalities required for association management, which can lead to increased costs, extended project timelines and the need for complex customizations that may compromise your processes. Instead, consider the advantages of a purpose-built AMS, such as ThreeSixty, which is specifically designed with associations and nonprofits in mind. Purpose-built solutions provide tailored functionalities that meet the distinct challenges faced by associations and nonprofits, offering benefits like advanced relationship management, access to a broader pool of developers using standard coding languages and a dedicated in-house support team. By understanding the key components to prioritize and the challenges involved with platform-based solutions, your organization can make an informed decision that aligns with its mission, supports growth and ensures long-term success. Curious about how a purpose-built AMS can enhance your association? Download our comprehensive guide for an in-depth look at essential features, detailed comparisons and actionable insights to help you make the right choice for your organization. Discover expert tips and success stories showing how purpose-built solutions are driving success for organizations like yours.