2. Fundraising and Development
deals with the raising of
monies for an expressed
purpose. This generally occurs
through non-profits.
3. An organization formed for the purpose of
serving the public rather than making a profit
The IRS gives a non-profit the 501(c)(3) status –
as a charitable organization
◦ Non-profit is exempt from federal income tax
◦ Contributions made to non-profit are generally tax
deductible
Non-profits, such as libraries, use foundations to
collect and distributes funds
4. You Make a Donation...
•Monies go through a
Foundation
•The Foundation distributes
the funds to the Library
Foundations at work…
•Public libraries establish
them for receiving
grants/private funds
•All types of libraries work
through foundations
•Colleges/Universities –
have foundations on
campus
IRS Qualification
501(c)(3)
•Benefit to the donor is that
their contributions may be
tax deductible
•Charitable Contributions:
http://www.irs.gov/pub/ir
s-pdf/p526.pdf
6. Identify Funding need
Create Fundraising
Plan
Create a clear message
Find potential donors
who believe in
message
Ask for
donations/sponsorship
Stewardship –
Acknowledgement of
gifts by showing
gratitude
7. Communication
◦ Newsletters, Press releases, fliers, fundraising
letters, special events
All should communicate the value of the library to the
community
Acquiring Donors
◦ Start asking for support, ask for gifts
Start with small amounts, even if it costs $1 to raise $1
you gain a donor base
Creating a giving Pyramid
◦ Establish donors and move them up the pyramid
8. Establishing Gift Clubs or Memberships
◦ This is where you move a $50 donor into becoming
a “Library Associate” at a donation of $1200
◦ At this level invite them to events, recognize them
by assigning special seating
◦ This is where “cultivation” happens – building the
relationship between the donor and the operations
and goals of the library
Keep them up-to-date on happenings in library
9. Planned
Gifts
Major Gifts
Membership Level
Annual fund/donation
Idea is to move
donors up the
pyramid.
By cultivating you
may change a
member into a major
donor
Long term
relationships become
planned gifts –
Endowments/Estates
Takes years to
develop donor
Requires 3-5
years for gift
10. Planned gifts = 80-90% of funds raised
Major Gifts
Annual fund & Memberships 5-10%
•Note the inverse relationship of income to donor type
13. Lobbying of state or
federal government
Groups like CLA advocate
http://capwiz.com/ala/ca/
home/
ALA advocates
http://staging.ala.org/ala/
mgrps/divs/alta/altaadvoca
cy/advocacy.cfm
Public libraries
need to make their
needs known to the
government
15. Some libraries have
their own
Development officer,
often it is the library
director
Call on prospects,
communicates
vision, writes grants
Solicits major gifts,
manages fund
raising team
Closes major gifts,
sets direction for
fund raising
University President
VP of Development
Development
Officers
Library
Manager of
Prospect
Research
Identifies potential
donors, grants
16. “It is estimated that Research represents more
than 80% of the work involved in securing a
larger-than average gift”
◦ Researchers are always looking for companies,
foundations, individuals who may have an interest and
the potential to donate.
◦ Their research often involves accessing their internal
databases, library research, and using on-line
subscription tools.
◦ Their research is often compiled into reports for use by
development officers – It helps them understand the
prospect/potential donor.
17. Perception – Why should they donate to the library?
All Aboard – Support from the President on-down is
important in large campaigns
Turn over in staff, if there are any changes it can slow the
movement of donors up the pyramid
Choice – There are a lot of competing places donors can
give
18. Often they appeal to a specific audience,
therefore they have a smaller potential
donor base
In corporations if budgets are tight,
library is often on the cut list. If they are
for-profit they are not eligible for grants.
Competing for funds, example: a special
library in a museum must compete with
other efforts to fund the museum
Lack of a development department for
fundraising
19. Grants from other
sources
Private organizations
and foundations often
offer grants for a
specific purpose
Donations
Individual
donations
$ or gifts-in-kind
can be given right
away or left in a
will
Corporate
donations
sometimes act as
a form of
advertising
services or
products are often
given
20. Endowments
Money can be
raised and placed
in a fund for use in
the future
Foundations/
trusts
Created to ensure
that money is used
for intended
purpose
a board is usually
created
board usually will
identify aims and
objectives and raise
money
21. Friends of the Library
groups
Often plan
special
events
Pay
membership
fee to library
Advocate for
library
May help
with public
relations for
library
23. Government grants
State aid
• Local officials and local voters
approve aid for special
projects
Federal aid
• Categorical aid is awarded for
a specific purpose or project
• Non-categorical aid is
awarded for with little or no
spending guidelines (it is also
much harder to obtain)
24. Debate over on-line fundraising
◦ Some feel that it is unsafe and/or inappropriate
◦ Does not foster connections that lead to long-term
relationships
◦ Others feel that posting links and marketing on
their web pages is going to be vital in appealing to
an e-commerce society
◦ Excellent example of marketing and campaigning
on the web http://www.library.upenn.edu/portal/
Public libraries
◦ The fear is that private fundraising may affect
public funding, due to the amounts raised
◦ Safeguarding money for public libraries
Hinweis der Redaktion
Examples of non-profits
Academic
UCI Libraries – Their web site http://www.lib.uci.edu/partners/index.php?page=join
UCI Foundation http://www.foundation.uci.edu/about.asp
Public
Omaha Public Library Foundation http://www.omahapubliclibrary.org/foundation/#about
Omaha Library site:http://www.omahapubliclibrary.org/
Special Library
Gemological Institute of America [GIA] – library site –http://www.gia.edu/library/1669/section_main_page.cfm
GIA Endowment Fund -http://www.gia.edu/about/1674/support_gia.cfm
Pyramid is further discussed in:
Successful Fundraising, 2nd Ed, by Joan Flanagan
Successful Fundraising
Case Studies of Academic Libraries, Meredith Butler Editor
For further in depth information see: http://www.donorsforum.org/resource/grant_understanding.html
Corporate Foundation Example:http://www.usbank.com/cgi_w/cfm/about/community_relations/sponsorship_event.cfm
Family Foundation Example:http://www.pgafoundations.com
Example of Corporate giving site http://www.toyota.com/about/our_commitment/philanthropy/guidelines/
Example of Sponsorships – US Bank Site and what they sponsor http://www.usbank.com/cgi_w/cfm/about/community_relations/sponsorship_event.cfm
Individuals – those who share your organizations common goals
State Funding – in CA http://www.library.ca.gov/grants
Federal funding - http://www.usa.gov/Business/Nonprofit.shtml
Components of Development involves relationship building and includes:
Is designed for highest level of donors and prospects: major gifts, corporate donors (usually supports capital campaigns)
It is relationship building, development officers are the guide to helping a donor to the next level of giving (the pyramid)
They create ways to reach out to donors, by communicating and by building opportunities for donors to feel a part of the university. An example is inviting a donor to become a member of a steering committee, this is building involvement and a common goal.
Hart, T., Greenfield, J., Johnston, M. (Ed.) (2005). Nonprofit Internet Strategies. Hoboken, New Jersey:John Wiley & Sons, Inc.
Colleges and Universities have entire departments dedicated to what they term “University Advancement or University Relations & Development”
SJSU’s - http://www.sjsu.edu/advancement/giving/
What are the roles of each of these players
President – Provides the leadership for overall program.
VP – Integral for providing the leadership for development officers, also assists in securing major gifts
Development officers – usually there is a officer for each department of the university, for example Development officer for Performing Arts, they write grants, meet with donors, etc.
Prospect Research- Help identify prospects for funding – they find the individuals, corporations, foundations which could provide funds, grants or in-kind donations. Prospect research is vital to long term success of development office.
Tools used by prospect researchers:
For a great overview of tools used see USC’s Research Power Tools
http://www.usc.edu/dept/source/DevResTool.htm
Foundation Center: http://www.foundationcenter.org/
Quote: (Hart, T., Greenfield, J. M., & Johnston, M., 2005, p. 57)
Perception – is that libraries are funded, and don’t need outside funds. Libraries need to market themselves as integral part of the University.
Getting the President of the university on board, this is critical for success, as the message comes from the top down. Also President is key in the securing of gifts.
Issues:
Usually special libraries
If company not making money – 1st place cut is library
Appeal to a very specific audience for funds –example of special library GIA
(http://www.gia.edu/library/1669/section_main_page.cfm)
Finding the donor – not as obvious that the library exists
Smaller base for solicitation
Sources on online fundraising
Hazard, B. L. (2003). Online Fundraising at ARL Libraries [Electronic version]. The Journal of Academic Librarianship, 29, 8-15.
Hart, T., Greenfield, J., Johnston, M. (Ed.) (2005). Nonprofit Internet Strategies. Hoboken, New Jersey:John Wiley & Sons, Inc.
University of Pennsylvania - http://www.library.upenn.edu/portal/
