1.      Dues–related Revenue

This revenue stream is intended to be steady, subject to change through negotiations every three to five years, depending on cost escalation and ASCE’s financial condition.

1.1	ASCE provides 7.25 percent of the Annual Dues for Members as defined by the ASCE Bylaws as of September 30 of the previous fiscal year for each ASCE-Institute member or Institute–Only member classified as an ASCE Affiliate Member based on membership data as of September 30 of the previous fiscal year.
1.2	Dues from Institute–Only members who are not classified as an ASCE Affiliate Member. Each Institute sets the dues amount in accordance with ASCE guidelines. Revenue is the amount of Institute–Only member dues paid during the current fiscal year.
1.3	Dues from Institute corporate members. Each Institute sets the corporate dues amount in accordance with ASCE guidelines. Revenue is the amount of corporate member dues paid during the current fiscal year.
1.4	ASCE Base Funding. The ASCE Base Funding for each Institute is 333 times the Annual Dues for Members as defined by the ASCE Bylaws as of September 30 of the previous fiscal year (currently $180).
1.5	Start-up Subsidy. ASCE provides the start-up subsidy for new Institutes. The total start-up subsidy is equal to the ASCE Base Funding per Institute and allocated an additional 50% in the first year of operation, 33% in the second year of operation and 17% in the third year of operation.

2. Voluntary Contributions

The Institutes are empowered to charge their members Institute dues, or may request voluntary contributions from their members via a check-off on the ASCE Annual Dues Renewal form. Institutes may also establish special reserve accounts by soliciting donations directly from their members.

3. Institute Activities

Revenues generated in the current fiscal year based on Institute activities, programs, products, and services.

3.1	Each Institute earns 10 percent of the gross revenue generated by all Journals assigned to an Institute.
3.2	Each Institute earns 10 percent of the gross revenue generated by all other publications produced by an Institute. On a negotiated basis, the royalty may be tied to sales volume, and may exceed 10 percent if sales targets are met.
3.3	Revenue from conferences.

3.3.1	For specialty conferences in a discipline or practice specialty area that are conducted and managed by an Institute, the Institute earns the gross revenue from registrations, sponsorships, and exhibit sales. For conferences conducted in partnership with other organizations that are managed by the Institute or the partnering organization, the Institute earns the gross or net revenue on a negotiated basis with the partnering organization(s).
3.3.2	For specialty conferences in a discipline or practice specialty area that are conducted and managed by ASCE, the Institute earns 10 percent of the gross revenues from registrations and sponsorships, and two percent of the gross revenues from exhibit sales, which may be shared with a participating partner organization(s), if any.
3.3.3	For participating in the ASCE Annual Conference, each Institute earns 10 percent of the gross revenue from registrations from individuals in the Institute’s discipline or practice specialty area.
3.3.4	For participating in an ASCE Managed Conference, each Institute earns 10 percent of the gross revenues from registrations and sponsorships, and two percent of the gross revenues from exhibit sales.

3.4	Each Institute earns 10 percent of the gross revenue generated by new continuing education programs conducted in partnership with ASCE’s Continuing Education Department. Institutes may also earn revenue for continuing education programs that are produced in partnership with local groups, other ASCE units, or non-ASCE groups.
3.5	Institutes generate revenue from other sources, for example grants and special projects.

1.      Non-Salary Expenses

Expenses incurred in the current fiscal year for Institute activities, programs, products, and services, including:

1.1

For specialty conferences in a discipline or practice specialty area that are conducted and managed by an Institute, the Institute bears all expenses. If ASCE provides conference management services to an Institute, the Institute will pay ASCE its costs for services up to a pre-determined not-to-exceed amount, where cost is defined as 115 percent of the sum of direct salaries, fringe benefits, general administrative overhead, and direct expenses that ASCE incurs in managing the specialty conference.

1.2

All costs incurred by ASCE for conducting and managing a specialty conference on behalf of an Institute, incurred by ASCE for the ASCE Annual Conference, and incurred by ASCE for ASCE Managed Conferences are borne by ASCE.

2.      Salary Expenses

Actual salary plus fringe benefits for all staff assigned to an Institute, or a pro-rata share for staff shared by two or more Institutes. ASCE pays the salary, fringe benefits, and out-of-pocket expenses for the Managing Director of Engineering Programs and the Managing Director’s administrative support.

3.      Member Service Fee

Institutes pay ASCE 25 percent of the dues paid by Institute-Only individual members who are not classified as ASCE Affiliate Members. For organizational members, Institutes pay ASCE a negotiated member service fee, which 25 percent of the dues of the individual Institute-Only dues that are included in the organizational membership package.

Appendix A - Table 1: ASCE Funding Model for the Institutes