1. Fund Balance Requirements
Alan Berenbaum
SGB Meeting
Chicago, March 21, 2004

2. Current Fund Balance Requirement
Set by SIG Presidential Commission in 1990 at 50% of operational expenses, 20% of conference expenses
ACM and SIGS were in financial difficulties
Few of the SIGS could have met a conference balance >20%
Currently, 3 new SIGs and 3 old SIGS are below this requirement

3. Conferences can lose money
Through 90’s, most SIGS had healthy conference surpluses
Fund balance minimum wasn’t an issue
Things change…

4. Recent revenue history

5. New fund balance requirement
50% of operational expenses (same as before)
40% of conference expenses (up from 20%)
This is not a new “tax”. It is a mandate for prudence
Only 2 additional SIGS go below the minimum