2007-07-24
Fundraising for Libraries
On the 8th Berlin Conference on Arts and Media Administration Frances Q. Tschinkel, Director of Membership and Public Affairs of The New York Public Library lectured about a case study in developing a diversified funding base.
The New York Public Library, recognized as one of the worlds five great libraries, is in a leading position in finding new funding capabilities. A revitalized Board of Trustees and expanded network of committees had allowed the library to meet an operating budget that has grown from $58 million in the founding year 1895 (with $37 million/ 64% coming from government sources and $12 million/20% from grants, gifts, benefits, and investment income from the endowment) to over $280 million (with $165 million/59% from government sources and $77 million/27% from grants, gifts, benefits, and investment income from the endowment). Of equal significance has been the growth of the Librarys Endowment from $86 million in 1982 to over $620 million at the end of Fiscal Year 2005.
In the 1980s when the finances of New York broke down so that the library got enormous problems, a Board of Trustees has been founded. In the meantime the Trustees represents a broad spectrum of individuals from business, social, academic, and cultural circles. In the process of reaching out to these potential leaders, it is important to make clear what the expectations are on the part of the institution both in terms of financial support and in those unique contributions of time and talent that you are looking for and that these individuals can bring to your efforts. Whether you are a major cultural organization or a small community arts group, it is crucial to have an active Board, augmented by engaged committees with specific goals and objectives, that can play key roles in expanding your financial base. Figuring out where your needs and their interests intersect is the important factor and being able to capture their enthusiasm and passion for what you do and turn that into action on your behalf is the first step in opening up new revenues.
The three major sources of private (meaning non-government) monies are individuals, foundations, and corporations. The Library offers them an array of giving options:
General Operating Support: money, which can be used to cover the day-to-day operations
Restricted Support: for projects that are not part of the Operating Budget
Capital Support: for specific facility renovations or new construction.
Endowment Support: money, which can be used for specific purposes that are mission centric to the core work of the Library.
The significance of foundations
Foundations are a growing sector that must be part of the funding mix of every cultural institution. Whats so nice about this sector is that foundations are in the business of giving away money, most have professional staff to assist with the application process, and they generally have specific written guidelines that indicate their giving priorities. In recent years, the Library has secured anywhere from $10-18 million in support from the foundation communityaveraging about 30% of the private dollars raised.
Individual giving its where the money is
Each year the Library raise approximately 65% of the private operating funds from individuals, primarily through major gifts, membership contributions, and special events. Therefore the Library has made a significant investment in staff and resources to secure, cultivate and steward individual donors because this is indeed where the money is. To reach the best result for the Individuals and for the Library, there are a lot of layers of the individual fundraising ladder:
Membership (divide in 12 membership levels, beginning $25 tax deductible, ending &9,785 tax deductible), according special programs for families and young people.
Major donor gifts: Major Donors are those individuals who make significant contributions, generally $25,000 or more, to the full range of Library needs. These people are mostly members of the Board of Trustees.
Planned giving: it depends with the estate charitable giving tax laws. The Library has an estimated $79 million in total planned gifts on record.
Special events a wide field of possibilities but its dangerous: events are expensive, highly staff intensive, and can be money losers. Be sure theres a realistic budget put together before the event and then stick to it.
Corporate Philanthropy
The Corporate Partners Program includes companies with a wide range of business interests. To qualify for membership, these companies make an annual gift of $1,000 or more to support the Librarys vital work. In recognition of their generosity, they receive membership benefits. Sponsorships are becoming more and more the support vehicle of choice for corporations. They can use either their philanthropic money or marketing budgets, or both, to match their own business objectives and markets with charities whose missions and activities intersect with their goals.
Conclusion
The most important in one sentence: Its all about relationships. You may find that there are aspects of your own organization that may lend themselves to earned income opportunities that havent as yet been explored. Be entrepreneurial, but proceed with caution to be sure that these really will net money and, most important, do not in any way negatively impact your core mission.
New York Public Library: http://www.nypl.org
A special thanks to the Institute for Arts and Media Administration, Free University Berlin: http://www.ikm.fu-berlin.de
In the 1980s when the finances of New York broke down so that the library got enormous problems, a Board of Trustees has been founded. In the meantime the Trustees represents a broad spectrum of individuals from business, social, academic, and cultural circles. In the process of reaching out to these potential leaders, it is important to make clear what the expectations are on the part of the institution both in terms of financial support and in those unique contributions of time and talent that you are looking for and that these individuals can bring to your efforts. Whether you are a major cultural organization or a small community arts group, it is crucial to have an active Board, augmented by engaged committees with specific goals and objectives, that can play key roles in expanding your financial base. Figuring out where your needs and their interests intersect is the important factor and being able to capture their enthusiasm and passion for what you do and turn that into action on your behalf is the first step in opening up new revenues.
The three major sources of private (meaning non-government) monies are individuals, foundations, and corporations. The Library offers them an array of giving options:
General Operating Support: money, which can be used to cover the day-to-day operations
Restricted Support: for projects that are not part of the Operating Budget
Capital Support: for specific facility renovations or new construction.
Endowment Support: money, which can be used for specific purposes that are mission centric to the core work of the Library.
The significance of foundations
Foundations are a growing sector that must be part of the funding mix of every cultural institution. Whats so nice about this sector is that foundations are in the business of giving away money, most have professional staff to assist with the application process, and they generally have specific written guidelines that indicate their giving priorities. In recent years, the Library has secured anywhere from $10-18 million in support from the foundation communityaveraging about 30% of the private dollars raised.
Individual giving its where the money is
Each year the Library raise approximately 65% of the private operating funds from individuals, primarily through major gifts, membership contributions, and special events. Therefore the Library has made a significant investment in staff and resources to secure, cultivate and steward individual donors because this is indeed where the money is. To reach the best result for the Individuals and for the Library, there are a lot of layers of the individual fundraising ladder:
Membership (divide in 12 membership levels, beginning $25 tax deductible, ending &9,785 tax deductible), according special programs for families and young people.
Major donor gifts: Major Donors are those individuals who make significant contributions, generally $25,000 or more, to the full range of Library needs. These people are mostly members of the Board of Trustees.
Planned giving: it depends with the estate charitable giving tax laws. The Library has an estimated $79 million in total planned gifts on record.
Special events a wide field of possibilities but its dangerous: events are expensive, highly staff intensive, and can be money losers. Be sure theres a realistic budget put together before the event and then stick to it.
Corporate Philanthropy
The Corporate Partners Program includes companies with a wide range of business interests. To qualify for membership, these companies make an annual gift of $1,000 or more to support the Librarys vital work. In recognition of their generosity, they receive membership benefits. Sponsorships are becoming more and more the support vehicle of choice for corporations. They can use either their philanthropic money or marketing budgets, or both, to match their own business objectives and markets with charities whose missions and activities intersect with their goals.
Conclusion
The most important in one sentence: Its all about relationships. You may find that there are aspects of your own organization that may lend themselves to earned income opportunities that havent as yet been explored. Be entrepreneurial, but proceed with caution to be sure that these really will net money and, most important, do not in any way negatively impact your core mission.
New York Public Library: http://www.nypl.org
A special thanks to the Institute for Arts and Media Administration, Free University Berlin: http://www.ikm.fu-berlin.de
An article by Uwe Wagner, Arts Management Network, based on a case study from Frances Q. Tschinkel, New York Public Library
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