November 17, 2017

CIPA Expenses and Donations Impact ALA Financial Report

By LJ Staff

According to an unaudited financial report, presented to the Executive Board
of the American Library Association (ALA) at their November 2 meeting, the
General Fund realized a net loss of $634,384 for FY 2002. Net revenue was
$176,032 before unbudgeted expenses of $810,416, approved at the Fall 2001
Executive Board meeting. At the June 2001 meeting, the board raised the expense
ceiling for the CIPA lawsuit to $1.7 million, in anticipation of additional
spending related to the Supreme Court challenge, to be heard during the current
session of the high court. ALA has already incurred costs of $1,434,596 since
the inception of the CIPA lawsuit. ALA committed $500,000 to the bill and has
raised donations of $371,048. The Finance and Audit Subcommittee of the board
recommended that $350,000 be withdrawn from the ALA Future Fund in order to
avoid drawing down the General Fund Net Asset Balance of $519,548, in
anticipation of “difficulty expected during FY 2003.”

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