Best professional practices for AMCs.

The Association Management Company (AMC) Section of ASAE and the International Association of Association Management Companies (IAAMC) are pleased to announce that a jointly-endorsed set of practices within the association management company business has been published.

The purpose of the document is to promote high quality performance in the operation of an AMC, and the document includes suggestions for effective communication between companies and their clients; standards for contracts, financial management, and office operations; and ideas for assuring a smooth transition between client and company.

"Best Professional Practices for Association Management Companies" provides tips for the efficient operation of an association management company and its relationship with client organizations and helps volunteer leaders of associations understand the accepted practices, contract provisions, and technology in the AMC business. While recognizing that each relationship between a company and its clients is unique, these practices were developed to promote professionalism within the management community, with fairness and equity to both client and company in mind.

The first part of this document covers the role of an AMC's staff and the association's volunteer leadership and emphasizes that staff should assist their volunteers to be mission driven. It describes the frequency of contact by an AMC owner/executive and reviews the services being provided. It also talks about the need for associations to provide written policies to give AMC staff direction in decision making and the importance of companies being knowledgeable about legal issues of concern to their clients, such as antitrust guidelines.

The second section covers contractual arrangements, the responsibilities of both parties, common clauses, protections, and other issues that should be addressed in the contract.

A third section covers the key financial management functions of an AMC and emphasizes the prohibition of commingling of funds between the AMC and any client, or among clients.

In addition, "Best Professional Practices for Association Management Companies" suggests that client files, records, and property be segregated from those of other client associations.

The longest section specifies an AMC's responsibilities to provide high-quality office and technology systems for its clients. This section describes an AMC's staffing resources, equipment, technology, and physical office to be used in support of association activities. It also talks about records retention and segregation and disaster planning.

"One of the most difficult times during the client/company relationship is the time of termination - for whatever reason," says G. A. Taylor Fernley, chair of ASAE's AMC Section. "These professional practices encourage a professional management company to have the Best interests of the association in mind and to provide for an orderly termination, meeting all of the obligations under the agreement, and providing courteous and cooperative help during the transition."

The full text of "Best Professional Practices for Association Management Companies" is available through the AMC Section's home page at www.asaenet.org/Sections/AMC/mgmttoolsl html or by calling the ASAE fax-on-demand service at [phone] and requesting document 40019.

Joanne J. Cole, CAE, is managing member of Professional Management Associates, LLC, Belle Mead, New Jersey. She is also chair of the AMC Section's Professional Practices Task Force.