Section Budget Submission Requirement
Adopted on May 25, 2022
1. No later than 75-days before the end of each calendar year, each Section shall submit to LACBA a proposed budget for the following calendar year that sets forth the projected costs and expenses of that Section’s entire anticipated programming for the coming calendar year (including, as applicable, anticipated receptions, kick-off events, and any year-end gatherings and dinners).
2. In addition to anticipated costs and expenses of such programs, each proposed budget should separately list for each proposed event:
2.1. the approximate date;
2.2. for programs with historical reference, the prior year’s approximate number of attendees, and gross revenue;
2.3. the estimated total annual sponsorship and registration revenue for the event.
3. LACBA will review each Section’s proposed budget, and approve, deny, or modify the budget no later than 30-days before the end of the calendar year in which it is submitted. The budget submission and approval process will be guided by Section I of the Membership Task Force Report & Recommendations dated October 7, 2019 and the following considerations:
3.1. In crafting their proposed budgets, the Sections should consider their financial contributions to LACBA during the calendar year the proposed budget is submitted as well as funds attributed to that Section in its ledger at the time of the budget submission.1
3.2. In considering whether to approve, deny, or modify each Section’s proposed budget, LACBA may consider its own financial needs, the need to maintain its tax-exempt status, and the financial performance of the proposing Section’s programming during the prior calendar year. Notwithstanding these considerations, the budget LACBA approves for each Section shall be equivalent to at least 75% of the amount available in the Section’s ledger as of the end of the third quarter of the calendar year preceding the proposed budgetary period. Amounts budgeted for but not used by a Section cannot be used for other unplanned events without LACBA approval or carried over into subsequent years’ budgets. The budgetary process contemplated herein is an annual process.
4. In approving a Section’s budget, LACBA commits in good faith to make funds and resources available to that Section in the budgeted year to put on the proposed (and budgeted for) programs and receptions.
1 A Section’s ledger is the financial report that LACBA periodically provides to Section leadership, which reflects Section event revenues in relation to direct expenses. The ledger includes all revenues raised by a section exclusive of section dues. The expenses reflected on the ledger include all direct charges relating to a sections program and events, as well as associated LACBA staff overtime. But such expenses exclude regular wages of LACBA event personnel and other staff, and any and all overhead costs incurred by LACBA.
