The issue of the annual meeting as not only a vehicle
for conveying a pr edominant part of our educational program-
ming, but also of generating revenue is an interesting one.
The 10% excess of revenue over expenses(including indirect
costs) is actually a new policy, for the annual meeting has in
the recent time period actually been a drain on the Association,
although that was not realized, because all costs were not
applied against an activity until this year. We made a first
attempt at a good indirect cost study last year, but it was
corrected/refined this year. So, only in future years will
we be generating revenue in the true sense from this activity.
As a catch phrase, cash cow may have some appeal on
a visceral level, but it does usually convey a larger level
of excess revenues from an activity than 10%. However, that is
not the point that bears emphasis here. That, rather, is that
AALL through its strategic plan and financial long range plan
has acknowledged that some of its activities will be revenue
generating, some will be revenue neutral, and some will operate
and need subsidizing. The decision as to which category an
activity falls in will be determined by the Board ultimately.
The recently adopted financial long range plan indicates
categories and revenue levels for current broad categories of
our current activities. The agreement by the Board on these
placements has then provided direction for the budgeting pro-
cess.
Because we will always want to engage in activities
that can generate no revenue, it will be important to set
revenue-generation goals appropriately for those activities
whose value leads to a willingness to pay above their actual'
full costs, in order to fund the activities that will not
even break even. The tension between dues levels and revenues
from activities that our members purchase and revenues from
activities that principally non-members purchase will always
be there for Boards to resolve. However, it will often be
the case that revenue generation goals will be in place for
activities that are principally purchased by our members.
If anything I have said involves errors of a numeric
nature, contact Judy Meadows. If, on the other hand, errors
of policy are involved, contact Carol Billings. No copies
to me are necessary in either case , as they can post the
corrected information.
Kay
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