Burial Traditions Changing Future Of Funeral Associations

Traditional funerals (memorial service, casket, burial) used to be the norm. As the cremation rate has inched up, however, the landscape has changed, both for funeral service providers and their respective associations.

The cremation rate passed 50% in 2016, according to the National Funeral Directors Association. By 2025 it is expected to become the disposition of choice for nearly 54% of those who die in the U.S. and by 2035, nearly 79%.

George Kelder, executive director of the New Jersey State Funeral Directors Association — as quoted in USA Today — notes, “What’s pretty interesting is it took nearly 100 years from the first cremation in the U.S. in 1876 to reach 5% in 1972, and since then, it’s grown exponentially.” Cremation is more affordable (as of 2017 the median cost of a funeral with viewing and burial was $8,755 compared to viewing and cremation at $6,260) but the burial rate has also been influenced by a more transient society, weaker ties to religion and environmental concerns.

Though a changing landscape can be scary for members, it represents an opportunity for associations. The more rapid and drastic the changes are, the more there is a need for the association to lead the charge to find innovative ways for members to respond. Sometimes this means championing governmental rule changes and sometimes it’s through “how-to” educational programs. Often it is both.

There’s another trend impacting funeral director associations: member mergers and acquisitions. According to the U.S. Census Bureau the number of firms declined from 16,338 in 1997 to 15,638 in 2012. (Last year’s data are not yet available.) This has an impact on associations: fewer potential members likely means reduced revenue in the future. And reduced future revenue means we need to not only be asking tough questions now but acting on the answers.

I see too many association boards that are having the exact same conversations they were having five years ago. If this is your board, learn from Steve Smith, executive director of the American Academy of Hospice and Palliative Medicine, at Association Management Center, on how to set up a generative discussion. Generative conversations are future-focused and directional (as opposed to decisional) in nature. Not only will they engage your board’s intellect, they are more likely to lead to value-enhancing choices than committee reports ever will!