ALA Council

Revenue versus Overhead

  • 1.  Revenue versus Overhead

    Posted 17 days ago
    It sounds as if there needs to be clarification for ALA Councilors as well as anyone interested in ALA budget issues about overhead versus revenue. I know I'm unclear on this and am struggling to understand.

    In its May 2018 report, "PLA Response to ALA Investment Plan (FY19-21)," PLA states, "Currently, Annual produces net revenue as well as overhead for the association. Overhead is used to support operations in mission-driven services like OIF and ODLOS. Midwinter does not produce revenue over and above overhead it generates. Improvements to Annual Conference could offset the overhead loss if Midwinter is eliminated. Additionally, eliminating Midwinter would reduce costs across multiple units of the Association that could be used for investment in current successful or promising new ventures [my emphasis]. From the PLA Board's perspective, ALA should strongly consider the elimination of the Midwinter Meeting."

    If Midwinter produces overhead that supports ALA offices that can't generate revenue, how is that materially different than generating net revenue? Has the gain/loss been mapped across the units in the association to demonstrate potential savings? I do understand the point about work effort for Midwinter and have reflected on this myself; there's an opportunity cost in managing Midwinter that could be limiting the revenue we could generate from, say, a bigger, bolder Annual. But without additional data and modeling it feels speculative to propose that eliminating Midwinter would save money through reduced work effort.

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    Karen Schneider
    Dean, University Library
    Sonoma State University
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  • 2.  RE: Revenue versus Overhead

    Posted 17 days ago
    All,

    Susan Hildreth, Treasurer, and I will outline the financial details to provide Council with information regarding Midwinter conferences. We will also check with Clara Bohrer to determine if this was previously calculated and if so, we can update with the 2018 MW financials.

    Thanks!

    Maggie Farrell - BARC Chair
    Dean of University Libraries
    UNLV Libraries
    maggie.farrell@unlv.edu




  • 3.  RE: Revenue versus Overhead

    Posted 16 days ago
    Thanks, Maggie!

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    Karen Schneider
    Dean, University Library
    Sonoma State University
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