Mutually assured survival: library fund-raising strategies in a changing economy

Library Trends, Summer, 2003 by Lisa Browar, Samuel A. Streit

ABSTRACT

THIS ESSAY EXAMINES THE CURRENT international economic disruption and its effect upon the scholarly and academic community, an effect that is exacerbated by what appears to be a fundamental shift in donor philosophy. Taken together, these factors are forcing academic and cultural institutions to reevaluate traditional areas of support in light of broader societal pressures. The implications for research libraries, including their special collections departments, are profound, and much of this essay is devoted to strategies for coping with an unfamiliar and competitive fund-raising environment. The approach is to stress the need for librarians, including those in special collections, to develop a long-term vision and strategy based upon a flexible working knowledge of the evolving goals and mission of the parent library and institution. Additionally, the essay emphasizes the necessity for understanding the broader philanthropic environment and the tools required to exploit philanthropic opportunity, from planned giving and investment vehicles to donor-advised giving instruments.

INTRODUCTION

Traditionally, academic libraries in general, and special collections libraries in particular, have derived their operating budgets from a combination of sources. Operating budgets are the cumulative result of funds provided from tuition revenues, university allocations, endowment income, and monies raised annually from a variety of sources including individual donor contributions in the form of cash gifts, gifts-in-kind, and bequests; and grants made by corporate and philanthropic foundations and governmental granting agencies. The recent economic downturn, with its far-reaching effects on the for-profit, nonprofit, and governmental sectors of the American economy, has imperiled each of these sources, threatening the continued flow of financial support into academic libraries and endangering the future growth of their collections.

In addition to pursuing development initiatives in support of their own programs, special collections libraries have long provided leverage for larger institutional fund-raising efforts by providing exhibitions, private viewings of their most prized collections, behind-the-scenes tours, limited edition publications, and exclusive venues for dazzling receptions, dinners, and gala events all designed to impress and entice donors. The public relations aspect of special collections librarianship, always an important component of the work, will not diminish as fund-raising becomes increasingly competitive. In fact, the opposite is likely to be true.

For better or worse, special collections libraries are perceived as possessing an element of glamour and exclusivity shared by museums but missing from general research libraries. The one-of-a-kind aspect that attaches to special collections along with the well-publicized prices of many acquisitions, the rarefied atmosphere of auction houses, and the members of the literati and glitterati so often associated with museum culture combine to obscure the support given to research and teaching, the sometimes back-breaking work of acquisitions, and the many quotidian tasks that comprise the daily reality of the jobs along with the rigorous intellectual preparation that the profession demands. Nevertheless, maintaining this glamorous facade will be important as library and institutional fund-raising enters an environment of foreshortened expectations. As special collections librarians and institutional development officers work harder and longer for every dollar raised, dependency on the public personae of special collections librarians, their work, and their workplaces will increase.

Working alone or in tandem with their development officers to generate income for their own collections or for the larger institutions in which they reside, special collections librarians can take preemptive measures to shore up current or anticipated fund-raising shortfalls caused by prevailing economic conditions. Their ability to respond to these circumstances will require the creation and implementation of long-term strategies designed to mitigate the effects of an unfavorable economy. Successful implementation of such strategies will depend to a great extent upon three things: the ways in which the market economy affects the nonprofit sector; an understanding of the changes in the philanthropic environment brought about by the market economy; and a working knowledge of the latest investment strategies and giving instruments available to and used by private, corporate, and foundation donors.

HOW THE CURRENT MARKET ECONOMY AFFECTS PHILANTHROPIC GIVING AND RECEIVING

Citing data collected by the Christian Science Monitor, the Philanthropy News Digest observed recently, "a shaky economy and plunging stock values have caused organizations and individuals to scale back charitable donations across the country, prompting nonprofits to find new ways to raise funds to further their missions" (Foundation Center, 2002b). This observation encapsulates the fallout experienced by the economic recession begun nearly two years ago and accelerated in the aftermath of the September 11th tragedies. Among the many newspaper stories documenting the recent decline in charitable giving, the New York Times reported on the impact curtailed giving is having on some cultural organizations,