Annual Fund Programs for Academic Libraries

ABSTRACT

ANNUAL FUND PROGRAMS ARE THE BUILDING BLOCKS for every other major funding program of the academic library. Keys to library annual fund success include identifying the library's constituents, developing a compelling case for support, and determining how the solicitation message can be delivered most effectively subject to existing internal and external barriers. Examples of effective strategies used to overcome these barriers are provided from U.S. and Canadian academic libraries. With the annual fund program firmly established, the academic library is then well positioned to seek the major funds required for growth and innovation.

WHY ANNUAL FUNDS?

Annual fund programs are frequently called the foundation or the base of the giving pyramid. It can be tempting to focus solely on major gift programs at the middle of the pyramid or to singularly contemplate the vast intergenerational transfer of wealth awaiting those who focus on planned giving at the top of the pyramid. However, "Pyramids," as Greenfield (1999) observed, "are built from the bottom up" (p. 98). So essential is annual giving to the total well being of the development program that Rosso (1991) has called the annual fund "the cornerstone and the key to success for all aspects of the resources development program" (p. 51).

According to Nichols (1986), major or capital gift programs produce "funds to grow by" (p. 253) while annual fund programs provide equally crucial "funds to live by" (p. 253). In spite of the fact that annual funds bring in the "immediate dollars that help the college or university close the gap between revenues and expenditures" (Welch, 1980, p. 2), there is a popular myth that annual giving programs are somehow less important to the development program than major giving programs.

Nichols (1986) asserted that such thinking is myopic and mistaken for several reasons. First, annual giving dollars often provide income that is many times greater than the size of the endowment required to generate comparable funds. Second, annual giving provides a wide base of supporters and, hence, its frequent identification as the base of the giving pyramid. Third, "annual giving solicitations are important cultivation events in the life cycle of major donors" (p. 254). Sadler (1995) advised:

   It is through the annual fund that relationships with donors are built. ...
   It is difficult to have a successful campaign when your organization has no
   giving history from which to identify people who can give at appropriate
   levels. Cultivate relationships through the annual fund. Build trust and
   confidence in the organization's ability to manage resources well. (p. 33)

By their very nature, annual fund programs are conducted at least on a yearly basis and often more frequently. Although what distinguishes an annual gift from a major gift varies by institution; typically these annual gifts are contributions of less than $10,000.

In the past, annual fund solicitations have been targeted toward unrestricted gifts. However, the Council for Aid to Education (1998) reported: "For the past 15 or more years, unrestricted gifts to current operations have been roughly flat in constant dollar terms" (p. 13) and as a percentage of gifts received for current operations have steadily declined. In the last five years, unrestricted gifts have fallen from 31.2 percent of funds received for current operations in 1993 to 25.7 percent of the funds received for current operations in 1998 (Council for Aid to Education, 1999a, Table 7; Council for Aid to Education, 1995, Table 7). Greenfield (1999) concluded: "Moire and more, donors prefer specific projects, tangible items, and results whose value they can appreciate" (p. 102).

ANNUAL FUND PROGRAMS FOR LIBRARIES--THE CONTEXT

Annual fund programs are the building blocks for every other major funding program of the academic library. Given the trend for academic library development programs to be created by the pressure of impending institution-wide capital fund-raising campaigns, it is not surprising to see some libraries bypass an annual fund program in an attempt to move directly to major gift fund-raising. While such a strategy may be successful in the short term, it does not bode well for a consistent growth-oriented library development program in the long term. What will nurture and help grow all other development programs is a well-designed creative annual fund program.

Kemmis (1998) observed that: "The fund-raising experiences in libraries parallel those in the nonprofit sector" (p. 196). We maintain that, while the principles of annual fund programs are the same for academic libraries as for any other campus academic unit, academic libraries may face barriers to creating a successful annual fund program from inside the library as well as from within the institution. Fortunately, academic libraries are in an excellent position to build partnerships within the institution and can offer donors giving opportunities that are truly unique. The remainder of this discussion will examine the keys to a successful library annual fund program, will describe creative ways in which barriers have been overcome, and will report on some productive annual fund campaigns in U.S. and Canadian academic libraries.