Libraries and Philanthropy

Overview

To recognize the connection between libraries and philanthropy, an understanding of the most common definitions of philanthropy is helpful. The classic definition of “philanthropy,” defined by Dr. Michael Moody and Dr. Robert Payton as a voluntary action performed to support a public good, is, in contemporary practice, often interchanged with the term “fundraising.”

Libraries are typically considered community assets worthy of philanthropic support because they offer access to information and contribute to community literacy. The missions and goals, especially of public libraries, however, have expanded in recent years to include community engagement, lifelong learning, and personal and professional growth for community members.

Libraries have benefitted from both fundraising and philanthropy, the latter of which can be recognized as a more holistic approach to securing charitable support that extends beyond dollars.

Rather than signaling decline for the public library, the digital era has positively impacted the general notion of a library as a valuable community resource in many ways. Many observers feel libraries in the digital era are more worthy of charitable support than ever.

Foundations, individuals, and corporations are among the institutions that might offer philanthropic support to libraries. Friends of the Library groups and library foundations are often major drivers for fundraising and philanthropic support.

When speaking of libraries, especially in the context of philanthropy, it is best to distinguish between academic libraries and public community libraries, though both face similar financial obstacles.

Academic libraries, especially amid modern funding shortfalls in higher education, are challenged not only to develop effective development strategies that rely on researchers, alumni, and other potential donors, but also to effectively advocate for libraries to academic financial officers, who often view libraries as a burden and can even question their relevance in the online information era. In Successful Fundraising for the Academic Library: Philanthropy in Higher Education, Kathryn Dilworth and Laura Sloop Henzl make the case for academic library fundraising as an integral part of a school’s overall fundraising mission, and emphasize collaborative relationships and other strategies for continued success.

Although much current library literature on philanthropy focuses on academic libraries, according to the Foundation Center, a national nonprofit service organization recognized as the nation’s leading authority on organized philanthropy, a significant portion of annual gifts are allocated to public libraries. It is these community-centric institutions that can generate a spirited discussion about whose responsibility it is to fund them.

In the late 2010s, the presidential administration of Donald Trump pushed to eliminate all federal funding for libraries. In response, library associations called on their supporters to help them protect this critical revenue. Most funding to public libraries comes from the local municipalities they serve, whether a city, county, or small town. Many public libraries are municipal agencies themselves. This status, however, can be a challenge to fundraising activities, and fundraising hesitation permeates the library sector. Confusion about legal and tax implications, consequences of fundraising, and a general discomfort with gift solicitation are reasons public libraries often lack robust philanthropy programs despite the need to innovate, customize services, and evolve to respond to community needs that support well-being.

In an article titled “Libraries and Social Inclusion,” Evelyn Kerslake and Margaret Kinnell used the term “social impact” to indicate the vital role the library can play in supporting the community. While all public libraries do not pursue the same initiatives or have the same impact, they wrote, it is possible to demonstrate that public libraries work effectively in society and aid it in becoming more inclusive.

An American Library Association strategic plan noted several intangible library missions, including offering general access to information, providing public spaces, and establishing a tolerant environment. Support for education, entertainment, and social opportunities also were cited as specific contributors to community well-being. Many public libraries also provide basic community services. They participate in efforts to support the homeless and advance community health and wellness while simultaneously promoting literacy. Libraries are often the only places where underserved populations can access the internet at no charge, and librarians routinely assist patrons in applying for public assistance and employment. Public libraries, then, see themselves as social advocates because of their multifaceted missions.

It is important to note that public libraries are not generally or automatically tax-exempt organizations under section 501(c)(3) of the Internal Revenue Service code, but public libraries that are government agencies can receive donations, and those donations are tax-deductible for donors.

A common question considered in the public library realm is whether a library’s Friends or foundation should indeed become a 501(c)(3). There are two main reasons some support this idea. Many donors, especially major givers, prefer to give to private organizations over government agencies, and tax deductions are paramount. Also, many grantors will only make awards to 501(c)(3) organizations, not government agencies. Still, it is not always advisable to pursue the 501(c)(3) status given the complicated procedures involved.

Public libraries, whether government agencies or (501)(c)(3) nonprofits, have a storied history in the United States and abroad that is intricately tied to and dependent on philanthropy. The first free public library supported by tax dollars dates to 1833, in Peterborough, New Hampshire, while the Boston Public Library has been loaning books in Massachusetts since 1854. Businessman and industrialist Andrew Carnegie (1835–1919) was one of the most well-known philanthropists in the history of libraries. The Carnegie Corporation of New York, established in 1911, built approximately 2,500 libraries worldwide.

Libraries provide an array of services that, if effectively presented and defended, are likely to appeal to the average philanthropic donor because they touch several categories donors tend to prioritize. Among these categories are disadvantaged and underserved people of all ages, but particularly children, and marginalized populations such as the homeless. In communities facing significant homelessness, libraries have often entered the conversation and become part of the solution.

Organizations such as Kids Need To Read explain why donors might invest in library services that support children. Kids Need To Read was founded to improve the lives of disadvantaged children by providing inspiring books and literacy programs to underfunded schools, libraries, and organizations across the country. The organization seeks to enmesh children in a culture of reading, and its programs help to build support systems that develop literate minds.

Public libraries promote these same values when seeking philanthropic support and note that immersing children in literary experiences teaches them the impact of reading on every aspect of life and guides them toward a flourishing future regardless of their background or resources.

Disadvantaged populations also benefit from public libraries, as was evidenced when the COVID-19 pandemic sent the world into chaos in early 2020. Populations without access to Wi-Fi or technology, including computers, mobile devices, or printers, could rely on public libraries for the equipment and services necessary to help them obtain or retain jobs, transition to remote work or new fields, or research available opportunities in a quickly changing world.

As with all sectors of the nonprofit world, libraries found themselves, more than ever, in need of additional funding and philanthropic support to weather the fallout from a virus that continued to disrupt the country and world for years to come.

Carla Hayden, Librarian of Congress, emphasized the importance of community building and philanthropy and noted the need for an increase in private donations even long before the pandemic began. She cited a number of modern projects, including the digitization of collections, as examples of areas of interest for potential donors.

Because of the expansive mission of public libraries and the evolution of services, fundraising and philanthropy have always been and remain of primary concern to library leaders. In Serials Librarian, Rose Kernochan lays out the history of fundraising in American public libraries by focusing on the New York Public Library. Fundraising has not traditionally been a skill library schools have emphasized, but Kernochan argued it is necessary for effective leadership. Fundraising is not an optional leadership skill, she wrote, but instead a vital component of library operations. Modern library directors must develop fundraising abilities or hire fundraising professionals if the institutions are to continue to thrive.

America’s public libraries, she noted, have faced numerous challenges in an era of evolving technologies, but the gradual dwindling of historical public funding is no less a threat to library futures. Librarians must return to their historical roots and embrace the crucial work of fundraising that has allowed libraries to devise creative solutions to budget deficits .

Further Insights

An important example of the role of philanthropy in libraries is the New York Public Library, which is among the largest libraries in the world, behind only the Library of Congress and the British Library, which national governments control. The New York Public Library is a non-governmental nonprofit and strongly established as a worthy charitable cause. It is owned by the Astor, Lenox, and Tilden foundations, named for three of the wealthiest citizens in New York City’s history. John Jacob Astor, James Lenox, and Samuel Tilden gave the library its start in the nineteenth century. To this day, major donors remain an important source of its vitality, and the giving that created the New York Public Library has continued to thrive throughout its existence.

In 1999, a gift from the Rose family, successful in the New York City real estate arena, restored the main reading room. In 2008, Stephen Schwarzman, chairman and CEO of The Blackstone Group, restored the marble façade and expanded the book stacks. Clothing designer Bill Blass restored the catalog room, and Brooke Astor’s donations have resulted in the naming of the front hall in her honor.

The New York Public Library remains an independent nonprofit that serves over 17 million people annually throughout its ninety-two branches citywide, with millions more using its free services online. A portfolio of city funding, major gifts, and fees for service (dues) ensures that the world’s greatest public library continues to enrich the life of its city and country and serve as an example of the philanthropic appeal of all libraries.

But historical tradition is not the only indicator of libraries’ worth, and current relevance in light of current events also should be taken into account. The global COVID-19 pandemic not only put libraries front and center as a community resource but established libraries as important locations during any type of disaster or disordered circumstances.

In his publication The Developing Role of Public Libraries in Emergency Management: Emerging Research and Opportunities, Michael Mabe identified essential service roles for librarians and libraries in emergencies. They included staying open during natural disasters to serve as a safe haven, coordinating disaster recovery and guiding those in need of government aid, and simply offering normal services in times of turbulence by teaching and providing support. Other roles included serving as a cultural organization center and offering staff trained to provide conservation and preservation advice regarding restoration.

Also during emergencies, Mabe noted, libraries operate as information hubs that provide mass communication and serve as centralized locations to protect evacuees. They also shelter immigrants and refugees. Additionally, libraries play a mental-health role when turmoil overtakes a community. They organize on-site or remote events and activities (movie nights, book discussions, webinars, classes, and more) that boost morale and keep citizens engaged during crises. Finally, libraries and librarians also collect information around disasters to make it available for future generations, Mabe wrote. These materials can aid in healing or be provided as a future planning resource.

Issues

Any discussion about philanthropy in public libraries often involves debate about government funding because public libraries commonly receive funding from local governments. A study in the American Economic Review found that government grants cause significant reductions in fundraising. This adds a new dimension to policy discussions because it is believed that analysts should account for the behavioral responses of the charity, as well as the donors, to government grants. Many fundraisers fear that healthy gift pipelines can impede steady streams of government funding.

The growing mistrust of government, however, is among the chief threats to the long-term health and vitality of public libraries, according to State Librarian Mark Smith, who has cited an overall lack of trust in public institutions while noting that public libraries generally have avoided that mistrust. Still, he wrote, the current culture of rhetoric and partisan bickering can reduce the perception of public employees, including librarians, so the trend should be deeply alarming.

Smith also noted the societal loss of faith in objective information as a distressing trend for public libraries because people are increasingly turning to non-objective, non-authoritative sources for knowledge. While he still sees high trust levels in the authenticity of information from libraries, Smith fears future erosion.

Smith also noted that when decreased faith in government and public institutions extends more noticeably to the local level, community engagement with civic institutions such as public libraries suffers. An increasing fear of interacting with one another in a public space is also a threat to libraries, even in well-tended spaces. Even magnificent and well-appointed libraries can evoke fear when they, for example, serve populations such as the homeless. Smith pointed to the increasing disappearance of the middle class, which increases homelessness and the homeless population’s incursions into libraries. The effect on the housed population is more withdrawal from public spaces.

Finally, citing Andrew Carnegie’s “palaces for the people” conception of the public library as a booster for middle-class potential, Smith noted that as impoverished populations increase and their safety nets decrease, the burden that falls to libraries may overwhelm their capacity to respond. A related problem amid widespread middle-class decline is the challenge of recruiting and retaining library workers for the wages most libraries can afford to pay. Increased philanthropy is one potential solution, particularly in the realm of capacity building and operational support, which are two of the most desired categories for which nonprofits, libraries included, seek funding. But they also are the categories in which funding is the most difficult to obtain.

Bibliography

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