SIC 8699
MEMBERSHIP ORGANIZATIONS, NOT ELSEWHERE CLASSIFIED



This category covers membership organizations, not elsewhere classified (NEC), such as art councils, automobile owner's associations and clubs, humane societies, and reading rooms.

NAICS Code(s)

813410 (Civic and Social Organizations)

813910 (Business Associations)

813312 (Environment, Conservation, and Wildlife Organizations)

561599 (All Other Travel Arrangement and Reservation Services)

813990 (Other Similar Organizations)

The membership organizations (NEC) group was comprised of about 11,432 establishments with 108,600 paid employees in 1998. Many organizations, however, were staffed primarily with volunteer members. Most of the groups were small, local bodies, uniting people with common interests. In fact, many associations in this classification had no full-time staff members and only few hundred, or fewer, members. In the late 1980s, the average organization had eight workers and paid about $123,000 in payroll expenses, an average of only $15,000 per employee.

Almost all membership organizations in this classification are tax-exempt corporations. They generate revenues through dues, sales of insurance and other products and services, fund raising events and drives, endowment funds, and investments. Larger organizations often hire professional fund-raising firms. These companies usually charge a flat-fee or a percentage of proceeds and conduct direct marketing campaigns and events. The average establishment in this group generated tax-free income of $550,000 annually during the 1990s.

While most miscellaneous membership organizations are relatively small, there are a few large entities that warrant description. In 1998, the Boy Scouts of America (BSA) had 4.8 million members, 500 employees, and sales of $251 million. That same year, the Girl Scouts of the USA had 3.5 million members. YWCA of the USA reported 2 million members in 1998, $15 million in sales, and 90 employees. Rotary International reported 1.2 million members, 400 employees, and $72 million in sales.

American Automobile Association. With more than 40 million members, 90 clubs, and 1,000 offices, the American Automobile Association (AAA) is one of the largest and most successful enterprises in the United States. The only other organizations that compare in size to this behemoth are the U.S. Catholic Church and the American Association of Retired Persons. Unlike most organizations in this group, the AAA pays some taxes, but it still operates as a not-for-profit entity.

The AAA is a federation of 145 affiliated auto clubs. Members receive access to emergency road services, vacation and travel planning assistance, group insurance plans, and financial services. They also get periodic newsletters and magazines that keep them informed about automotive, travel, energy, environmental, and legislative topics. The AAA is the largest publisher of travel-related publications in the world. It produces more than 350 million copies of its publications each year, and consumes 22,000 tons of paper annually to produce its library of maps and books. The AAA also supports highway and road safety initiatives, and lobbies for membership interests.

The AAA was formed in 1902 when nine automobile clubs joined forces. As the automobile became a staple of American life during the twentieth century, AAA membership swelled to 20 million by 1980. During the 1980s, moreover, the AAA boosted its ranks at a rate of more than one million each year. It markets its services on a local basis, with each affiliate handling its own recruiting through direct mail and telephone sales. In-house local staffs provide individualized service. As a result, the AAA enjoys a membership renewal rate of 88 percent—much higher than the industry norm.

American Farm Bureau Federation. Another one of the largest membership organizations (NEC) is the American Farm Bureau Federation (AFBF). It represents the political interests of its members, and is recognized as a relatively powerful lobbying group in Washington. In the past, AFBF leadership has shown support for flexible price supports and minimal government interference in farming. The group has also promoted soil and water conservation, rural education programs, and rural electrification and infrastructure.

Farm bureaus emerged with the development of the county agricultural agent plan in the United States during the early 1900s. The AFBF was founded in 1919 to combine these bureaus into a single entity—to "promote, protect, and represent the business, economic, social, and educational interests of the farmers of the nation." The AFBF had about 4 million members in 1996.

Further Reading

Darnay, Arsen J., ed. Service Industries USA. Farmington Hills, MI: Gale Group, 1999.

Elsbach, Kimberly D. "Member's Responses to Organizational Identity Encountering and Countering the Business Week Rankings." Administrative Science Quarterly, September 1996.

Hoover's Company Capsules. Hoover's Online. 2000. Available from http://www.hoovers.com .

Kuttner, Robert. "After Solidarity." American Prospect, May/June 1996.

Pisik, Betsy. "The NRA's New Top Gun." Working Woman, April 1996.

Rubenstein, Edwin. "Right Data." National Review, 9 December 1996.

"The Top 100." Association Management, May 1996.

User Contributions:

Comment about this article, ask questions, or add new information about this topic: