Chapter 3: Budget & Finance

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Introduction

The RUSA Budget and Finance Committee advises the RUSA Board of Directors and RUSA Leadership Council, on all fiscal matters of the division, especially with regards to fiscal alignment with strategic objectives. The committee works closely with the RUSA Executive Director in planning and monitoring the budget.

Member Composition

  • RUSA Vice-President/President-Elect
  • A representative from each of RUSA’s Sections
  • RUSA Executive Director (ex officio)
  • Other members as appointed

Financial Relationship between ALA and Divisions 

The summary language below is from the ALA document found at this link.

“Divisions are governed by prevailing ALA fiscal policies and procedures related to dues (ALA Bylaws, Article I, Section 2; Article VI, Section 6) and Council actions with fiscal implications for Divisions (ALA Policy A.4.2.2). Divisions shall participate in formulating and revising these policies and procedures.”

“The fiscal arrangements between ALA and its membership Divisions can be categorized in four ways—shared administrative and operational expenses that are covered by ALA and Division revenue; shared member value and mission-based expenses that are covered by ALA and Division revenue; Division expenses for which the Division assumes full responsibility; and direct costs for services that are paid by Divisions for special services.”

The Budget Process

RUSA’s budget year runs from September to August. The RUSA budget is part of the ALA budget, and RUSA adheres to ALA budget guidelines and rules regarding salaries and benefits, equipment and space costs/projects, inflation projections, and other matters. According to ALA policy, division boards have responsibility for developing and approving budgets and multi-year program and financial plans, which are then reviewed by the ALA and BARC (the Budget Analysis and Review Committee). The overall ALA annual budget, which includes the RUSA budget, is approved by the ALA Executive Board. Divisions also have the responsibility to alert the Association to any planned activities that could have a potential negative impact upon the fiscal stability of the Association.

RUSA revenues derive primarily from dues, sales of continuing education webinars, registrations fees, donations and honoraria, royalties, and endowment interest. The RUSA budget is divided into programmatic and management areas including:

  • Administration — includes staff salary and benefits, hardware and software, office supplies, and phone.
  • Membership promotion — includes materials/printing as well as exhibiting at other conferences, membership surveys, and other costs associated with promoting membership in RUSA.
  • Programs — RUSA conference programs including the President’s Program and Section programs, when funds are available.
  • Royalties.
  • Awards—revenues and expenses for producing awards and distribution of monetary awards.
  • RUSQ — costs associated with the production of RUSA’s quarterly journal.
  • Online Continuing Education — revenues and costs associated with development, delivery, and promotion of RUSA’s online courses.
  • Publications — costs associated with producing, promoting, and supporting publications.
  • Literary Tastes/Literary Luminaries — expenses for producing this event at the Annual Conference.
  • Preconferences — revenues and expenses for producing preconferences at the Annual Conference.
  • Endowment — tracks endowment funds.
  • Bank fees.
  • Overhead expense required by ALA.

The executive director meets quarterly with the RUSA Budget & Finance Committee and the RUSA Board of Directors on budget performance. 

Budget and Finance Meeting Schedule

  • Fall meeting (after the close of the September-to-August budget year).
  • Mid-year meeting to consider the preliminary budget presented by the Executive Director.
    • This meeting should be scheduled early enough to report to the mid-year meeting of the RUSA Board.
  • March meeting for additional discussion of the preliminary budget.
  • June meeting to finalize a recommended budget for the newly installed RUSA Board to approve for the year ahead.

RUSA’s Endowment and A New ALA Financial Model

RUSA maintains a healthy endowment. The endowment is invested by ALA. The amount of endowment interest varies each year based on market performance. In past years, the endowment interest has been used to supplement the RUSA budget, funding necessary expenses. When RUSA would run a surplus, the Board elected to keep the interest in the endowment to help the endowment grow.

ALA financial policies and Division Operating Agreements are being revised.  With the new Operating Agreement, ALA is moving toward a “One ALA” model where reserves applied to Divisions no longer are a separate accounting item.  ALA has proposed a model for sharing the net operating surplus from each revenue-generating unit. Each unit will be able to invest its share for use in the future and under conditions that are not subject to payout caps as set by the endowment trustees.

Whereas in the past, Divisions were counseled to maintain reserves equivalent to “50% of the average expenditures over the last three fiscal years,” this is no longer the policy. In FY 2024, ALA instructions to units with endowment interest was to apply the interest to their operating budgets.  This was to help ALA with its budget deficit. The new policy is a policy in progress. The operating agreement will be reviewed every five years.

 

Revision: 

To be updated by members of the RUSA Budget and Finance Committee. Updated 11/20/2025.