Performing Due Diligence: How an Association Board of Directors Should Evaluate its Association Management Company

By Mike Dwyer, CAE, Association Headquarters & Paul Hanscom, CAE, Ewald Consulting

It’s not uncommon that an association board of directors will decide to take a harder look at its relationship with its association management company partner after a significant change has occurred. This could be a change in staff leadership, management fee adjustment, or shift in the scope of service. Some associations have governing documents that stipulate that a level of review is required on a given time cycle, e.g. every three years. And occasionally a particularly fastidious board member will ask when the board last performed such a review, claiming that it’s the board’s fiduciary duty to perform its “due diligence” to ensure the resources invested by the association in the services provided by its AMC are well spent.

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