GREATER LOS ANGELES ZOO ASSOCIATION

Financial Trends

Organization Details

GREATER LOS ANGELES ZOO ASSOCIATION, founded in 1963, is a mid-sized nonprofit in the Animal-Related sector that reported $22.9M in total revenue in fiscal year 2023. Revenue decreased 15% compared to the prior year. Expenses of $22.1M left a modest 4% surplus.

Mission

THE GREATER LOS ANGELES ZOO ASSOCIATION ("GLAZA"), THE OFFICIAL SUPPORT ORGANIZATION OF THE LOS ANGELES ZOO AND BOTANICAL GARDENS ("ZOO"), IS A NOT-FOR-PROFIT CORPORATION ORGANIZED FOR THE PURPOSE OF ESTABLISHING, DEVELOPING, BEAUTIFYING, AND IMPROVING THE ZOO. THE ZOO IS OWNED AND OPERATED BY THE CITY OF LOS ANGELES ("CITY"), DEPARTMENT OF THE ZOO. TO FULFILL ITS MISSION, GLAZA CONDUCTS A FUNDRAISING PROGRAM THAT RAISES FUNDS FOR OPERATIONAL, PROGRAMMATIC AND CAPITAL NEEDS AND PROJECTS; DIRECTS AND OPERATES THE ZOO'S MEMBERSHIP PROGRAMS FOR NEARLY 40,000 HOUSEHOLDS; MANAGES MARKETING, STRATEGIC BRANDING, AND PUBLIC RELATIONS FOR THE ZOO; CONDUCTS A SITE RENTALS PROGRAM; PLANS AND EXECUTES SPECIAL EVENTS AND TRAVEL PROGRAMS; CREATES AND DISTRIBUTES PUBLICATIONS; MANAGES ITS WEBSITE; AND RECRUITS AND TRAINS APPROXIMATELY 400 DOCENTS AND VOLUNTEERS. OPERATING AGREEMENT: THE CITY ENTERED INTO AN AGREEMENT WITH GLAZA (THE OPERATING AGREEMENT) FOR THE PURPOSES OF OBTAINING ASSISTANCE IN ESTABLISHING, DEVELOPING, BEAUTIFYING, AND IMPROVING THE ZOO. THE OPERATING AGREEMENT WAS EXECUTED ON SEPTEMBER 29, 1997 AND EXPIRED ON SEPTEMBER 29, 2022. UNDER SECTION III OF THE OPERATING AGREEMENT, THE ZOO AND GLAZA ESTABLISHED SEVERAL MEMORANDA OF UNDERSTANDING (MOUS) TO IDENTIFY SPECIFIC PROGRAMS AND FINANCIAL OBLIGATIONS. FOR SEVERAL YEARS, GLAZA WORKED IN GOOD FAITH WITH THE CITY AND THE ZOO TO NEGOTIATE A NEW OPERATING AGREEMENT. ON SEPTEMBER 2, 2022, THE CITY COUNCIL (COUNCIL) APPROVED AN EXTENSION OF THE OPERATING AGREEMENT THROUGH MARCH 30, 2023, WITH AN OPTION TO EXTEND FOR AN ADDITIONAL SIX MONTHS THROUGH SEPTEMBER 30, 2023 WHILE NEGOTIATIONS CONTINUE. THE COUNCIL ALSO DIRECTED THAT THE EXTENSION INCLUDE THE TERMS OF THE EXPIRED MOUS, AS WELL AS THE CURRENT VERSION OF THE CITY'S STANDARD CONTRACTING PROVISIONS. DURING THE YEAR ENDED JUNE 30, 2022, GLAZA AND THE CITY EXECUTED BOTH THE FIRST AND SECOND AMENDED AND RESTATED OPERATING AGREEMENTS TO INCORPORATE THE COUNCIL'S DIRECTIONS AND EXTEND THE CONTRACTUAL RELATIONSHIP THROUGH SEPTEMBER 30, 2023. ON OCTOBER 24, 2023, THE COUNCIL APPROVED A TERM SHEET FOR AN INTERIM AGREEMENT BETWEEN GLAZA AND THE ZOO, TO BE DRAFTED BY THE CITY ATTORNEY. ON MAY 30, 2024, THE CITY AND GLAZA EXECUTED AN INTERIM AGREEMENT WITH A RETROACTIVE TERM OF OCTOBER 1, 2023 - JUNE 30, 2025. THE FOLLOWING MOUS WERE IN EFFECT DURING THE TERM OF THE OPERATING AGREEMENT AND BOTH THE FIRST AND SECOND AMENDED AND RESTATED OPERATING AGREEMENTS. THE INTERIM AGREEMENT CREATED NEW OPERATING AND FINANCIAL STRUCTURES. MEMBERSHIP (1997 AGREEMENT MOUS): GLAZA MANAGES THE ZOO'S MEMBERSHIP PROGRAM. FEES COLLECTED FROM MEMBERS ARE USED TO FUND DEPARTMENT EXPENSES, PLUS SUPPORT EXPENSES FOR VOLUNTEER AND DOCENT PROGRAMS, PUBLICATIONS, AND WEBSITE MANAGEMENT. THE LAST MOU EXPIRED JUNE 30, 2017. DURING THE TERMS OF BOTH THE FIRST AND SECOND AMENDED AND RESTATED OPERATING AGREEMENTS, THE CITY AND GLAZA CONTINUED TO OPERATE UNDER THE TERMS OF THE EXPIRED MOU. PER SECTION VII OF THE OPERATING AGREEMENT, GLAZA REMITTED 25% OF MEMBERSHIP FEES RECEIVED TO THE ZOO, PLUS THE NET SURPLUS (IF ANY) AFTER DEPARTMENT EXPENSES AND OTHER SPECIFIED PROGRAMS' EXPENSES ARE PAID. MEMBERSHIP (INTERIM AGREEMENT): SIMILAR TO THE 1997 AGREEMENT, GLAZA MANAGES THE ZOO'S MEMBERSHIP PROGRAM. FEES COLLECTED FROM MEMBERS ARE USED TO FUND DEPARTMENT EXPENSES, AS WELL AS SUPPORT EXPENSES FOR VOLUNTEER AND DOCENT PROGRAMS, PUBLICATIONS, AND WEBSITE MANAGEMENT. UNDER THE INTERIM AGREEMENT, GLAZA REMITS 35% OF MEMBERSHIP FEES RECEIVED TO THE ZOO, PLUS THE NET SURPLUS (IF ANY) AFTER DEPARTMENT EXPENSES AND OTHER SPECIFIED PROGRAMS' EXPENSES ARE PAID. THE AMOUNT OF MEMBERSHIP FEES GLAZA CAN RETAIN TO PAY THE DEPARTMENT'S EXPENSES AND OTHER SPECIFIED PROGRAM'S EXPENSES ARE CAPPED AT FIXED PERCENTAGES. AN ADDITIONAL PERCENTAGE IS ALLOWED TO BE USED TO COVER GLAZA'S ADMINISTRATIVE EXPENSES. GLAZA REMITS TO THE ZOO ANY NET SURPLUS REMAINING AFTER DEDUCTING ALL THESE EXPENSES. CONCESSION AGREEMENT: IN MAY 2019, GLAZA AND THE CITY EXECUTED THE 6TH AMENDMENT TO THE OPERATING AGREEMENT (THE 6TH AMENDMENT), EFFECTIVE JULY 1, 2019. THE 6TH AMENDMENT TERMINATES AND REPLACES THE CONCESSION AGREEMENT AND FUTURE CONCESSION MOUS AND BECAME PART OF THE EXISTING OPERATING AGREEMENT. THE CITY AND GLAZA INTEND TO INCORPORATE THIS 6TH AMENDMENT INTO THE RENEGOTIATED OPERATING AGREEMENT. THE 6TH AMENDMENT GRANTS GLAZA THE RIGHT TO ENTER INTO A CONCESSIONS SERVICES AGREEMENT WITH A CONCESSIONAIRE FOR A TEN-YEAR PERIOD, WITH A FIVE-YEAR OPTION TO EXTEND. THE CONCESSIONS SERVICES AGREEMENT BETWEEN GLAZA AND THE CONCESSIONAIRE, SSA GROUP, LLC (SSA), WAS APPROVED BY THE LOS ANGELES CITY COUNCIL (COUNCIL) IN DECEMBER 2019. AN AMENDMENT TO THE CONCESSIONS SERVICES AGREEMENT WAS APPROVED BY THE COUNCIL IN AUGUST 2021 AND BECAME EFFECTIVE OCTOBER 1, 2021. PER THE 6TH AMENDMENT, GLAZA PAID THE ZOO A PERCENTAGE OF COMMISSIONS RECEIVED FOR SERVICES AND AMENITIES PROVIDED BY THE CONCESSIONAIRE. GLAZA RECEIVED AN ANNUAL FEE FOR MANAGING THE CONCESSIONS SERVICES AGREEMENT WITH SSA. UNDER THE INTERIM AGREEMENT, THE ZOO ASSUMED OVERSIGHT OF CONCESSIONS. GLAZA NO LONGER RECEIVES AN ANNUAL FEE FOR MANAGEMENT OF THE CONCESSIONS SERVICES AGREEMENT. IN ADDITION, CONCESSIONS COMMISSIONS ARE NOW PAID DIRECTLY TO THE ZOO. THIS RESULTS IN AN ANNUALIZED LOSS OF APPROXIMATELY $3,000,000 OF PROGRAM-RELATED REVENUE. FINANCIAL ASSISTANCE, SPECIAL EVENTS, AND COMMUNITY AFFAIRS (1997 AGREEMENT MOUS): UNDER THIS MOU, TERMS ARE ESTABLISHED FOR RAISING UNRESTRICTED, RESTRICTED, AND ENDOWMENT FUNDS. IT ALSO ESTABLISHES FUNDING FOR AN EVENTS DEPARTMENT AND CONSERVATION DONATIONS MADE AT THE ZOO'S DISCRETION. THE LAST MOU EXPIRED JUNE 30, 2017. DURING OPERATING AGREEMENT NEGOTIATIONS, THE CITY AND GLAZA CONTINUE TO OPERATE UNDER THE TERMS OF THE EXPIRED MOU. FUNDRAISING PROGRAM (INTERIM AGREEMENT): SIMILAR TO THE 1997 AGREEMENT, TERMS WERE ESTABLISHED FOR RAISING UNRESTRICTED, RESTRICTED, AND ENDOWMENT FUNDS. UNDER THE INTERIM AGREEMENT, GLAZA IS AUTHORIZED TO USE UNRESTRICTED FUNDRAISING RECEIPTS TO COVER EXPENSES NOT ALREADY PAID BY ANOTHER SOURCE". THOSE EXPENSES INCLUDE FOR THE FUNDRAISING DEPARTMENT, ADMINISTRATION AND INFORMATION SERVICES, EVENT MANAGEMENT, AND DAYTIME PUBLIC EVENTS. IF A SURPLUS EXISTS AFTER EXPENSES ARE PAID, GLAZA REMITS 50% TO THE ZOO AND RETAINS THE REMAINING 50%. MARKETING AND PUBLIC RELATIONS, AND SITE RENTALS AND CATERED EVENTS (1997 AGREEMENT MOUS): THIS MOU SPECIFIES GLAZA WILL PROVIDE MARKETING, PUBLIC RELATIONS, AND STRATEGIC BRANDING SERVICES FOR THE ZOO. IT ALSO STIPULATES GLAZA WILL OVERSEE SITE RENTALS FOR PRIVATE EVENTS AND EXECUTION OF NIGHT-TIME TICKETED EVENTS TO GENERATE ADDITIONAL REVENUE. THE LAST MOU EXPIRED JUNE 30, 2019. DURING OPERATING AGREEMENT NEGOTIATIONS, THE CITY AND GLAZA CONTINUE TO OPERATE UNDER THE TERMS OF THE EXPIRED MOU. BEGINNING IN THE YEAR ENDING JUNE 30, 2020, THE CITY AND ZOO CEASED TO PROVIDE A REBATE OF ADMISSIONS REVENUE AND NIGHT-TIME TICKETED EVENT PROCEEDS IF FISCAL YEAR ADMISSIONS TARGETS ARE ACHIEVED. GLAZA PAYS 10% OF SITE RENTAL FEES AND ALL NET PROCEEDS FROM NIGHT-TIME TICKETED EVENTS TO THE ZOO. MARKETING AND SPONSORSHIP (INTERIM AGREEMENT): GLAZA PROVIDES MARKETING, PUBLIC RELATIONS, AND STRATEGIC BRANDING SERVICES SIMILAR TO THE OPERATING AGREEMENT. GLAZA MANAGES THE ZOO'S SPONSORSHIP PROGRAMS. GLAZA REMITS 25% OF SPONSORSHIP REVENUE TO THE ZOO, WITH THE REMAINING 75% USED TO FUND DIRECT COSTS OF THE SPONSORSHIP AND MARKETING DEPARTMENTS. GLAZA REMITS TO THE ZOO ANY NET SURPLUS REMAINING AFTER SPONSORSHIP AND MARKETING EXPENSES ARE PAID. SITE RENTALS (INTERIM AGREEMENT): GLAZA FACILITATES AND MANAGES SITE RENTALS AND CATERED EVENTS AT THE ZOO FOR PRIVATE PARTIES. GLAZA REMITS 25% OF SITE RENTAL FEES TO THE ZOO, WITH THE REMAINING 75% USED TO FUND DIRECT COSTS OF THE DEPARTMENT. GLAZA REMITS TO THE ZOO ANY NET SURPLUS REMAINING AFTER DEPARTMENT EXPENSES ARE PAID. SPECIAL EVENTS PROGRAM (INTERIM AGREEMENT): GLAZA PRODUCES AND PROMOTES ZOO MEMBER EVENTS, DONOR EVENTS, AND NIGHT-TIME TICKETED EVENTS. TICKETED EVENT REVENUE FUNDS EXPENSES INCURRED TO PRODUCE AND MARKET EVENTS. EACH EVENT IS FINANCIALLY RECONCILED SEPARATELY, WITH ANY NET SURPLUS REMAINING AFTER DEPARTMENT EXPENSES ARE PAID TRANSFERRED BY GLAZA TO THE ZOO.

Financial Overview (2023)

Year-over-Year Comparison

Governance

Special Practices & Reported Activities

Compensation of Officers, Directors & Key Employees

Historical Data