Referring to AARP's stamp of approval, Obama encouraged the public to "remember this endorsement the next time you see a bunch of misleading ads on television."

Associations generally don't receive such favorable attention. This is true even though the Supreme Court has ruled that freedom to associate with organizations dedicated to the "advancement of beliefs and ideas" is protected under the 14^th Amendment. Most people, including many in the media, prefer to think of associations as self-serving lobbying groups.

According to the American Society of Association Executives, there are more than 86,000 trade and professional associations in the U.S. In addition to lobbying, they help set product standards, host trade shows, sponsor training and serve local communities. Many help provide essential social services, including disaster relief.

But associations are mostly known for their involvement in public policy. If you read the latest news about healthcare reform, you'll also hear about the efforts of AHIP, PhRMA, the National Retail Federation, the American Psychiatric Association and others to influence the debate. On the next round of mega-issues - climate change and financial services regulation - associations will be front and center representing their memberships.

Yet, at a time when their members need them the most, many associations are struggling to make it through the recession. The Washington Post noted this week that most trade groups are expecting revenue to decline in 2010. Those expecting a decrease said they have already experienced an average revenue drop of 16 percent this year.

Why are associations facing difficult times? It's easy to explain why this is happening with groups serving depressed sectors, such as investment banking or automobile manufacturing. And organizations focused on trade and commerce are experiencing the same economic problems confronting their members.

Other associations, including many that focus primarily on advocacy, have been dealing with long-term challenges that date back to the 1990s. These challenges include:

• Loss of institutional loyalty. Corporate CEOs used to work their way up in a company and spend years serving in various leadership positions with their associations. But now CEOs are often brought in from other industries - or from overseas - and lack familiarity with trade groups. That means they won't hesitate to pull the plug on their membership if they don't like the direction an association is going.

• Decline in senior-level involvement. In a related trend, CEOs seem to be spending less time participating actively in their trade or business associations. According to a study last year by the Foundation for Public Affairs (FPA), 73 percent of CEOs at respondent companies were actively involved, down from 89 percent in 2005. (The FPA, by the way, is affiliated with the Public Affairs Council.)

• Difficulty in achieving consensus. As businesses have grown and diversified, it naturally becomes harder for them to find common ground on important issues. The current debate over climate change legislation provides a perfect example. Within the energy industry, some firms will do much better under a cap-and-trade system, while others will likely do much worse.

• The rise of coalitions. Companies that can't reach agreement with their peers now have more choices. They can form coalitions with like-minded firms and build alliances with non-profit advocates. During the last 15 years, Web-based technologies have made it easier and less expensive for companies to create ad hoc groups. In the same FPA study, 46 percent of surveyed companies said they have increased their reliance on coalitions during the past three years; a mere 3 percent reported less reliance on coalitions.

I don't mean to suggest that major trade groups will suddenly disappear. (The FPA study reported that 38 percent of firms were relying more on associations and only 19 percent said they had decreased their reliance.) Despite the growth of coalitions, associations still typically have bigger budgets, larger staffs, greater name recognition and a much broader sphere of influence.

In fact, the major policy issues facing Congress right now offer proof that companies and individuals banding together for a cause can speak with a much louder voice. On an issue as complicated as healthcare reform, it helps when that voice represents the consensus opinion of a group or sector of the economy.

Nevertheless, it's becoming increasingly difficult for many associations to maintain the long-term support they need to be effective. And, to make matters worse, associations are a lagging indicator of a troubled economy. "We didn't start feeling the impact until spring and summer," ASAE President John Graham told The Washington Post. "But we're going to be feeling it until next spring and summer."

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