Library Donations

On Jan 1, 2008 11:28 AM, Hank Harken <hharken2cox.net> wrote:
>
> Sorry for this very delayed comment - I've been away for about a month.
> More on that in a separate note.
>
> David surmised in a thread about public libraries...
>
> >Now I have to wonder. Since the public libraries around here are owned
> by the city,
> >I wonder if money donated to the library doesn't eventually wind up
> supporting new
> >street lights on the other side of town. Money is always fungible.
>
> Normally public library and libraries at public (state) universities in
> the US have separate accounts for monetary gifts and similar donations.
> These accounts are typically untouchable for other purposes. This is the
> proper way of keeping donations for things like books from being
> diverted for other purposes such as salaries and streetlights.

Even if there is a separate account, it depends upon how the city does things:

Librarian: We raised $10 million for the library through our Friends
of the Library foundation.
Mayor: Great, we'll use it for the street lights!
Librarian: Sorry, that $10 million is dedicated for the use of the Library.
Mayor: That's okay, we'll cut $10 million out of the Library budget
appropriation and then apply that to the street lights.
Librarian: But, we need that money to run the library!
Mayor: No you don't, you have $10 million in the Friends of the
Library Foundation

This is how all the state lottery money goes towards education, but
the overall education budget is no bigger than it was before the state
lottery.

--
David Weintraub
qazwartgmail.com

On 1-Jan-2008, at 09:28, Hank Harken wrote:
> Normally public library and libraries at public (state) universities
> in
> the US have separate accounts for monetary gifts and similar
> donations.
> These accounts are typically untouchable for other purposes. This is
> the
> proper way of keeping donations for things like books from being
> diverted for other purposes such as salaries and streetlights.

While this is true, it is also true that if a Library has a large
account of donations, it is quite likely to have its funding cut. In
effect, transferring donations to things like street-lights and
salaries for metermaids.

On Jan 4, 2008, at 7:50 AM, LewisGmail wrote:

> On 1-Jan-2008, at 09:28, Hank Harken wrote:
>> Normally public library and libraries at public (state) universities
>> in
>> the US have separate accounts for monetary gifts and similar
>> donations.
>> These accounts are typically untouchable for other purposes. This is
>> the
>> proper way of keeping donations for things like books from being
>> diverted for other purposes such as salaries and streetlights.
>
> While this is true, it is also true that if a Library has a large
> account of donations, it is quite likely to have its funding cut. In
> effect, transferring donations to things like street-lights and
> salaries for metermaids.

Unfortunately, these days, if the library doesn't get a lot of
donations, it's still likely to have its budget cut.

   --John

David W. said...

>Even if there is a separate account, it depends upon how the city does
things:

then submitted this scenario (edited) ...

>Librarian: We raised $10 million for the library through our Friends
>of the Library foundation.
>Mayor: Great, we'll use it for the street lights!

First - David, you've a very ambitious fundraiser with high expectations
of your Friends group. That's a considerable chunk of change and worthy
of a fair-sized building expansion perhaps a new building. You may get
contacted by director or president of a public institution to lead
their next fundraising campaign.

We're all a bit cynical about government, public servants (aka
bureaucrats) and politicians but it helps to keep in mind that the
majority of these folks want good outcomes, take pride in their work and
are happy to have things work out for all of us. That being said...

OK, I don't want to expend a lot of electrons on this (too late !) but
cities and towns are subject to their own municipal codes plus state and
US laws and regulations. Mishandling funds may invite inquiries from law
enforcement or attorneys general. Extremely poor management of finances
can lead to downgrading of municipal bonds by rating authorities which
makes it more difficult or more expensive to obtain money for public
projects. Angering Friends groups is not a good practice for savvy
politicians and responsible public servants. Friends groups normally do
not report to anything else but are normally separate fundraising
bodies. Donations usually have stipulations attached or designated for
particular purposes. Friends groups can be very vocal and big donors can
have significant political clout. Public institutions have separate
accounts for personnel (an ongoing commitment), then there are other
accounts depending on the institution which may be combined or separate
(equipment, consumables, and more), plus libraries have a separate
materials/information budget which may be broken down further:
monographs, serials (periodicals, newspapers, series), electronic
sources, support of particular subjects/programs/colleges. Typically
monetary gifts are kept in separate accounts.

I'll go out on a limb here and say that a large gift to a public library
or library at a public university has more safeguards on how it's used
compared to a similar gift to a private college. AFAIK, there is no
legal barrier preventing a private institution from using funds meant
for library collections to build an athletic facility or install
streetlights in the parking lot. Needless to say, that's not going to
sit well with the person or organization who donated the funds and it
won't encourage additional donations.

After two hundred years, US institutions have seen all sorts of schemes
regarding finances. To maintain public support and trust many safeguards
are in place including legislation. Not to say that politicians and
public servants don't make mistakes or take missteps but playing around
with accounts can have legal and political consequences. I think most of
us have noticed the occasional news note regarding a poor choice in
handling public funds at some point or other.

OK, I can feel the vibes from Adam - I think this thread is probably done.

[Good call - let's wrap this one up. -Joe]

Hank
Not looking to have the last word