FUNDRAISING Through a LIBRARY FOUNDATION

Ohio Libraries, Fall 2004 by Gehring, Gretchen

Public library fundraising is a relatively recent phenomenon, not only in Ohio but also across the country. Public libraries have been reluctant to engage in organized efforts to raise additional money, for a number of reasons - but for many libraries, the time has come.

Where did Toledo-Lucas County Public Library start?

In 1988, Toledo-Lucas County Public Library received about three-fourths of its funds from the state of Ohio and the remaining funds from a countywide, renewable operating levy. We received occasional unsolicited bequests and memorial gifts but did no active fundraising. The impetus to establish a formal fundraising program came from two library trustees and Director Clyde Scoles. They believed that politics change, the economy changes, and library funding could change, too.

Why choose a foundation?

In planning a fundraising program for the Toledo-Lucas County Public Library, the Board and staff reviewed three typical options: establishing a library-centered development department, centering fundraising efforts in the Friends of the Library organization, or establishing a library foundation. Here are some of the reasons the library chose a foundation:

* The library is severely restricted in its investments and expenditures. And, many foundations and other grantors require 501(c)(3) status from the IRS.

* The Friends of the Library have a 501(c)(4) designation. This allows them to do political lobbying on behalf of the library and to raise money for supplemental levy campaigns. However, money given to the Friends is not tax-deductible.

* A foundation offers greater flexibility in investment policies, provides a clear fundraising identity, and owns a 501(c)(3) designation to provide credibility and clear deductibility.

As it developed, the Library Legacy Foundation established priorities for its efforts. Today the foundation raises funds primarily for programming, collection development, and endowment. It also works to engage the philanthropic community and community leaders with the mission of the library. The foundation continually emphasizes that private dollars provide enhancements, and sometimes a safety net - but contributions could not begin to replace the tax dollars that keep libraries open and staffed.

Present foundation policy is to use cash gifts to support current library needs, while unrestricted bequests and other deferred gifts go into the endowment fund.

How did the foundation progress?

Early progress was slow. The foundation had to do considerable education of both the library community and the philanthropic community. The Library Legacy Foundation received its nonprofit status in 1990, and established a liaison to the foundation who was primarily responsible for fundraising. In 1996 the liaison began focusing on development full time. Although contributions were growing, a lack of urgency prevented the foundation from raising significant funds.

When did things change?

In 1996, the library asked the foundation board of trustees to consider a capital campaign to support a main library expansion and renovation project, providing enhancements that would not be possible with public money. The foundation agreed with great commitment, enthusiasm, and success.

That capital campaign changed the image and the community perception of the library and foundation. The Library Legacy Foundation established itself as a worthwhile recipient of significant gifts.

What does the foundation do today?

The Library Legacy Foundation now conducts a number of activities to provide continuing library support and to build an endowment for the future. Some of these include:

* Conducting an annual direct mail solicitation for unrestricted funds;

* Soliciting memorial and tribute gifts and coordinating a memorial book program;

* Obtaining underwriting for library programming;

* Preparing grant applications;

* Conducting an annual fundraising social event;

* Building bequests and deferred gifts;

* Soliciting support for the rare materials collection;

* Coordinating donor recognition and cultivation events; and

* Conducting events to highlight library needs.

Once a library overcomes a natural reluctance to conduct organized fundraising, trustees and staff are likely to discover a positive reception. Public libraries enjoy an enormous reservoir of goodwill, earned over decades with good collections and personal service. Many patrons of Toledo-Lucas County Public Library have deep and affectionate relationships with their libraries. This relationship must be treated with care and respect and can be augmented with opportunities for those people to offer support to the libraries they love.

Gretchen Gehring is Advancement and Resource Coordinator for Toledo-Lucas County Public Library. She can be contacted at (419) 259-5123 or ggehring@toledolibrary.org.