Library Financial Survival

While the value and use of public libraries has risen during the current recession, funding to support libraries has not. Research by the ALA suggests a "perfect storm" of growing community demand for library services and shrinking resources to meet that demand. As usage of libraries continues, budget cuts from local and state governments loom large. The reasons for the national decline in public library support include:

• Taxpayer resistance to tax increases
• Increased competition with other public services for limited government funds
• Increased competition from other information and learning providers
• Population shifts and changing demographics lead to changes in library use
• Evolution from visual to oral communication
• Value and relevance of public library is questioned in the current electronic information environment

How does a library director go about raising funds to cover day-to-day operations and to implement the objectives of a long-range plan?

Develop a Fundraising Plan

• Establish annual fundraising objectives based on annual budget projections
• Plan should have clearly defined goals, objectives and strategies
• It should include schedules, resources needed and expenses for fundraising tasks
• Total yield for projected fundraising activities plus government funding should add up to projected total income

Identify Potential Donors

• Government tax dollars, of which 77.1% is municipal and county and 12.8% is state funding (NCES 2006)
• Current library patrons can be solicited for funds in a variety of ways, that creates a sense of belonging and partnership with the library
• Local businesses will generally donate to libraries in order to gain community recognition
• Local and national foundations are known to make donations to large capital projects, such as the Bill and Melinda Gates Foundation
• Service organizations, professional associations, religious and other not-for-profit organizations are groups that support community activities
• Friends of the Library groups raise funds for projects in excess of the general library budget and also serve as library advocates

Methods of Fundraising

• Use statistical data to convince city council to give the library more money. Analyze the budget and determine the library's priorities and use data to demonstrate the library's need. Make a specific request for a dollar amount.
• The most effective way to raise money from private sources is to ask individuals for it. Soliciting donors can include the annual appeal drive or a capital fund drive to build a new library or create an endowment. Volunteers are needed to ask for gifts, especially those with connections and influence.
• Grants from both public and private sources can be a means of obtaining funding for special projects. Grant winning requires defining a set of needs for your library, finding relevant grant sources, proposing a partner that will enhance project success and perfecting the writing style of the grant.
• Consider setting up joint programs with other institutions in the community to share costs and benefits of these programs. Partnership will come in handy when writing grant proposals.
• Solicit local businesses face-to-face and recognize significant donations.
• Memorials and bequests to honor a loved one can range from the purchase of a book to construction of an entire library building. Donations can be accepted to celebrate birthdays, weddings or graduations.
• Event or publication sponsorships by organizations or individuals who want their donation to go toward a specific event or cause.
• Fee-based services such as copying, printing, faxing, meeting room rentals and selling food and drink are another way to fund your library, but make sure it doesn't jeopardize tax-exempt status.
• Benefit events can be major fundraisers for libraries, while also attracting community participation. These fundraising events include book sales, auctions, flea markets, antique appraisal fairs and bake sales.
• Gift in-kind donations of goods or services can be solicited for either the library's use or for resale to generate cash. This can include surplus equipment, food for program events or even professional or skilled services such as pro bono labor from lawyers, accountants or plumbers and electricians.
• Library directors must increase publicity to advertise all the available resources at the library which could lead to increased donations.

Soliciting Virtual Money

• Create an online Friends of the Library website that provides information on history of the organization, current goals, financial campaigns, annual book sales along with the membership page which describes the different levels of membership. New York Public Library has an excellent example of online fund-raising. Support the NY Public Library
• Plan an online marketing event, known as a web event built around a theme, such as National Library Week, that incorporates a fundraising drive, making sure the media is notified, which provides the library with free public relations.
• Utilize cyber-plaquing to honor benefactors, where different levels of donations may earn differing levels of recognition, which can include pictures of donors, dedications, testimonials and in-depth information.
• Online stores and auctions bring in funds from online sources that sell library merchandise or auction off old equipment.
• Ways to attract visitors to an online donation page: in-library promotion, advertising at local businesses, print media ads, TV/radio coverage and links from other web sites.