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Policy Considerations for Public Libraries Accepting Donations

Charge:

Develop an overview of non-tax sources of revenue for public libraries, consider their impact on public sources of funding and the policy implications of accepting support from, and/or forming partnerships with, non-governmental organizations.

Values:

  • Local, state, and federal levels of government are responsible for ensuring free and equal access for all people to a broad range of information and educational resources through public libraries
  • Libraries are non-partisan institutions
  • Communities consist of a diverse mix of public, non-profit, and private organizations which together take responsibility for enhancing library resources and services to meet local needs
  • Libraries retain the ability to determine whether conditions of a gift will be accepted in accordance with the mission of the library
Historical Context:

Many people do not realize that public libraries were born of private philanthropic initiative not public governmental action." (Thomas Jeavons, Ph.D., Public Libraries and Private Fund Raising: Opportunities & Issues, A Report of the Urban libraries Council, page 18-19). In highlighting the connection between private initiative and consequent public responsibility, Jeavons further notes that "as soon as philanthropists started creating or helping create libraries they began making gifts contingent upon these institutions also garnering public support. So Josiah Quincy’s gift to the formation of the Boston Public Library (in 1847) was made with the condition it be matched with public funds; and Joshua Bates’ crucial major donation (in 1852) seemed to be stimulated in part by the demonstrated civic commitment to this project."

Andrew Carnegie built upon this public-private initiative in donating funds for 1,679 library buildings in towns throughout the United States. Carnegie required towns which received library buildings to tax themselves at an annual rate of 10% of the total gift, the fund to be used to buy books, pay the salaries of library staff, and to maintain the building. Bill and Melinda Gates represent modern-day business leaders interested in the role libraries can play in addressing community priorities.

Assumptions:

  • Jurisdictions vary in their ability and commitment to fund public library services, depending upon local priorities, local leadership, and the community’s economic vitality.
  • Interest groups which want to improve and enhance the public library’s resources and services will enlist the community’s political, business, and non-profit sectors to make that happen.
  • Individuals who are able to arrange significant personal, corporate, or foundation gifts for public purposes usually exert influence in the political (i.e. "tax revenue") sphere.
  • It costs money to make money. Fund-raising requires a significant investment of Board and staff time.
Non-tax Sources of Revenue for Public Libraries:

  • Fines and fees for library services (for example, overdue charges)
  • Donations of cash, property, or securities from private individuals, private for-profit companies, or from non-profit organizations or foundations
  • Donations of products or services from individuals or organizations
  • Partnerships between libraries and organizations interested in sponsoring a library product, service, or program in return for some tangible benefit
  • Subsidiary library businesses which provide complementary services for a fee (for example: copy machines, equipment or room rentals, coffee shops, used or new retail book stores, "museum"/gift or sundry/supply shops, rental collections of popular materials)
Potential Impact on Public Libraries of Accepting Non-tax Sources of Revenue:

Potential positive results include:
  • Increased resources for library programs and services.
  • Increased influence in the political sphere through opinion leaders active in raising private dollars.
  • Shared understanding of the role the public library plays in addressing fund-raising for joint initiatives with other community groups.
  • Heightened visibility for the library as an organization worthy of both public and private funding.
Potential negative results include:
  • Private interests might exert undue influence on the library if the library becomes dependent upon private donations.
  • A decline in public tax dollars might result because the political establishment persuades the community that the library can and should operate in the non-profit sphere.
  • Donations made to the library might diminish private funds available for other philanthropic institutions.

Proposed Policy Guidelines:

  • Public libraries have historically been supported by public and private dollars and should continue to pursue both.
  • Public libraries should take steps to separate decision-making in the functions which might be affected by pressure from private interests (such as collections management or service delivery).
  • Public libraries should guard against the loss or diminishment of tax-based revenues as a result of receiving donations from new and non-traditional sources.