OLC'S QUEST FOR ALTERNATIVE FUNDING, THE

Ohio Libraries, Fall 2004 by Evans, Doug

In this issue of Ohio Libraries, we take a look at alternative funding as it relates to public libraries. In these tight economic times, it is imperative that libraries look at all of the sources of funding that may be available today. And, just like public libraries, the Ohio Library Council is continually looking for alternative sources of funding to support the programs and services that it provides to its members.

Approximately 65% of the OLC's annual operating revenue comes from traditional sources such as institutional (library) and individual membership dues. However, since the libraries' dues are based upon their level of LLGSF funding, that revenue source has been "frozen" for about three years. The level of individual membership dues, too, has been somewhat stagnant over the past couple of years as libraries have cut back on staffing and/or the payment of professional organization dues. Another "traditional" source of revenue for the OLC has been the registration fees for our educational activities, which account for about 25% of the annual budget. However, that source, too, is sometimes uncertain as libraries evaluate what they can afford to spend on professional development.

That leaves the OLC to look at other sources of revenue to account for roughly 10% of its $1.5 million annual budget. This year, the majority of that amount will be generated through investment interest income, the sale of publications and advertising in our publications, and fees charged to individual libraries for services they utilize. These programs include the new library director search service and strategic planning service, royalties from the workers' compensation group rating program, and the OLC-sponsored employee health, life, disability and long-term care insurance programs. The success of these programs indicates that the future of alternative revenue sources appears to be in service programs that are tailored to the needs of libraries.

There is a fairly simple philosophy behind the idea of generating income from service programs designed for libraries. First, similar to the OLC's professional development programs, only those who utilize these services will shoulder the expense. second, the OLC will only offer services that are directly related to the professional needs of its members. Third, the OLC's menu of services will only include products that are more competitively-priced or of better quality than those found on the open market. Finally, the services should generate enough revenue for the OLC to provide a return on the investment of time into the research and development to bring the products to our market.

The OLC is constantly looking at new products to meet the continually changing and growing needs of the members. Recently, the OLC signed an agreement with a vendor that will offer discounted electric power service to qualifying libraries and a vendor that will market the new digital postage meters that libraries will need to start using by the end of 2006. We're also looking at a program that will offer discounted local and long-distance telephone services. These and other services are designed to assist libraries with the everincreasing overhead costs in hopes that more of the libraries' limited dollars can be put toward materials, customer services, and the salaries of library staffs.

The quest for alternative sources of revenue for the OLC results in a win-win situation for everyone involved. The libraries and their staffs have access to new, cost-saving services, and the OLC supplements its operating budget with new sources of revenue. That means the OLC becomes less reliant on membership dues - or at least keeps them in check - and members see new and improved services for their professional association.

BY DOUG EVANS

EXECUTIVE DIRECTOR, THE OHIO LIBRARY COUNCIL

Doug Evans is the Executive Director of the Ohio Library Council. He can be contacted at (614) 416-2258 or devans@olc.org.