SJSU SLIS PROJECT ON FUNDRAISING

1. Megan McDowell
Judy Opdahl
Libr 204-14
Professor Alman

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

5. Academic-UCILibraries
•Has
established
foundation
•http://www.f
oundation.uci
.edu/about.a
sp
•Library Site
•http://www.li
b.uci.edu/par
tners/
PublicLibrary–Omaha
Public
•Has
established
foundation
•http://www.o
mahapublicli
brary.org/fou
ndation/#abo
ut
•Library Site
•http://www.o
mahapublicli
brary.org/
SpecialLibrary–GIA
•Has
established
endowment
•http://www.g
ia.edu/about
/1674/suppo
rt_gia.cfm
•Library Site
•http://www.g
ia.edu/library
/1669/sectio
n_main_page.
cfm

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

11. Private
Foundations
Corporate
Foundations
Family &
independent
Foundations
Corporate
Giving
programs
Sponsorships
Foundations
Community
Foundations
Public
Foundations

12. Individuals
Friends of
Organization
Family,
Alumni, Staff
State
Funding
State of
California
example of
funding
http://www.libr
ary.ca.gov/gran
ts/
Federal
Funding
Information on
Grants from the
Government
http://www.usa
.gov/Business/
Nonprofit.shtml

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

14. Colleges/Universities/Non-profits have
Development Departments
Team is dedicated to identifying and
cultivating major gift donors, corporate
donors
Team members work collaboratively
toward a fund raising goal and they
foster relationships with donors

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

22. Special events
Publicizes library
while raising
money
May include book
sales, black-tie
dinners, game
nights
Selling of
merchandise

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