The Rock Island Public Library Foundation

James F. Warwick

The Rock Island Public Library Foundation has been in existence for 10 years. Looking back, it has been a successful achievement that continues to provide many benefits to the library and its community. In sharing our experience, I intend to give some practical guidelines on foundations, to assist others when starting a foundation for their local library.

In 1995, the Rock Island Public Library Foundation will be granting more than $5,000 to the library to purchase library materials and provide special programming opportunities to the children of Rock Island. These are materials and programs beyond those included in the library's annual budget; items the library would not have if not for the foundation.

Board trustees and library staff both have a list of wants. This includes furniture, equipment, services, materials, etc., that we would like to see available in our library. Obtaining funds, maximizing the use of those funds, and providing a variety of services are important board functions. Each day of each year we make choices about what we can provide the public with the funds made available to us. By having a foundation, we are able to provide more to our patrons without having to rely on additional taxes. We offer individuals who wish to support the library a tax-deductible donation to a permanent fund that will be a continual source of income to the library in years to come.

The foundation is a 501(c)(3) designated institution and recognized by the I.R.S. and all contributions are tax deductible. As a tax-supported institution, direct contributions to the library are also tax exempt. However, some institutions will only give contributions to 501(c)(3) designated groups. Through the foundation, the library can apply for grants that it otherwise would not be eligible to obtain. By becoming a 501(c)(3) institution, we have been able to maximize giving to the library.

The Rock Island Public Library Foundation has established an endowment fund. The majority of contributions are added into this with few exceptions. We have had some donations contributed to specific library purchases, such as our parking lot. One of our fund-raising events during National Library Week offered participants different options. We listed the average cost of different library items like videos, CDs, best sellers, etc. Some donors contributed these specific amounts to the foundation, while others designated the purchase of library materials. Many of the people requested a book plate, something we would have normally done, honoring a family member or friend. The first year we used those funds from the fund raiser as specified. This reduced the amount of money contributed to the endowment fund by a third. In the subsequent fund raiser, at the request of the Foundation Board, the wording was changed. Requests to purchase library materials were still received. On this occasion, the Foundation Board requested the library place bookplates in our regular purchases so that the entire amount of the fund raiser would go into the endowment fund. This resulted in fewer book purchases in the present, but maximized future purchases by increasing the endowment fund, and contributors still see that items are being purchased in their name.

Many patrons already make contributions to the library. Some people do this by donating books to us. Some we add to the collection while the majority goes into the Friends' Book Sale. Some people save their aluminum cans and bring them to the library for our Recycle for Reading program. Many people purchase a book, often as a memorial. However, to many donors, there is a great deal of appeal in making a contribution that is intended to remain as part of a permanent fund, securely invested for the future use by the library. They can monitor the growth of the fund as it becomes more successful. Often, they are familiar with such funds since many churches and colleges already have something similar. The appeal is especially important when considering a memorial or honor account.

The first contribution came in the form of a memorial. A patron received an inheritance and wanted to make a contribution in the memory of his aunt. When I explained that the endowment plan was a permanent way of remembering his aunt, while making a tax-deductible contribution benefiting the library indefinitely, he established the first memorial fund. Several

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out-of-town residents have written me concerning donations in the memory of their parents. In one case it was for a parent who had instilled in her children the love of reading. In another, the library had been important in her parent's lives, with her father having served on the library board. Both chose to make a contribution to the foundation. As the foundation has become established, we have family members come to the library inquiring about it and leave having established a memorial.

I can understand the powerful emotions that motivate these donors. My wife and I lost a daughter, who died in her senior year of high school. Kathi had always been an avid reader, so memorials to the foundation seemed natural. There is a great deal of solace knowing that her memory will be perpetuated annually in books bought in her memory.

The foundation has 16 separate memorial or honor (in case of living contributors) funds established. Some of these are continuing to grow as friends and relatives make annual donations in their name. People make contributions as Father's Day and Mother's Day gifts, or to honor an anniversary or birthday.

A memorial or honor account is established with the donation of $1,000. At this time, we ask for the areas of interests in which to purchase library materials. Some of the funds were established over a number of years by making regular contributions to the foundation. The honor/memorial funds run from a minimum of $1,000 to more than $21,000. The foundation board has established a minimum of $100 of annual purchases for each fund no matter what the actual earnings for the account is. In addition to these accounts, there is a separate Children's Library Fund.

A former foundation board president (and current Library Board member) approached a locally prominent family about making a contribution to the foundation. Their unique request was that they wanted to establish a "scholarship" at the library. Since our services were free, it took some thought to match their request. Up to this time, only library materials had been purchased, although our bylaws did not set any limit on its uses. The Children's Department had begun two special programs through local grant funding that were very successful.

The Saturday Art Series involved a local artist teaching a small group of children different art techniques using literature-based themes. One class taught self portraits, while others included watercolors, oil pastels, and small sculpture, etc. The grant paid the artist a small stipend and covered supplies. Our children's librarian, Sandra Mulder, was responsible for this achievement. We were fortunate in getting a wide variety of children involved from all areas of the city, and the art produced from this series was then displayed in the Children's Department.

The other program was on drama. During the summer we hired a teacher to get the children involved in the many phases of producing a play, from set design to, a skit that was performed for the public at the end of the session. Because of the success of these programs and of the wide variety of children involved, the contribution was made to continue these programs on an annual basis. The donors also agreed to have publicity in the newspaper. This, again, was important both for the library and the family. The library now has a new, continuous series of programs to offer the public. We have several other families who are interested in doing something like this to get children involved in the library and books.

Recognition is also important. We send thank you and acknowledgment cards from the Foundation. Also, we thank people for their contributions in the library newsletter. In the fall issue of the library newsletter we have a history of all our donors who wish to be identified. The first section is by category according to amounts contributed. We have eight starting with $250-500 to the top category of $25,000 plus. The names for each category are authors. When our library was built, there were 12 names carved into the frieze of our limestone building. Eight categories were chosen to parallel the number of half columns on the front of the building. We also list all the other contributors without any amount designated relative to what they have contributed. The listing is called our Columns of Support, and the four columns of names are printed over a screened picture of our building. In the near future, we will be purchasing a wall display case for the library building in which we will permanently display and recognize those community members who have supported the foundation.

Every library, whether district or municipal, uses statistics to justify or to expand its funding. For municipal libraries, it is an annual event and increased usage statistics are important to justify continued support. The support that our foundation has demonstrated another important form of justification for increased city funding. The City Fathers can see that there is a body of people who are committed to supporting the efforts of City Council to provide an even better library to the community. They are very dramatically saying that this library is important to the citizens. The other side of the coin is that the library is doing a great deal in maximizing its support. What the library can do is being publicized and we are not just relying on the annual dole from the city. We are active in the community with our programs and in getting

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support. At the same time, they are aware the city has a commitment to support basic library services.

Another benefit of the foundation is that it enlarges the number of people who have a direct ownership in the library and its future. It creates another body of people who are actively working and promoting the library. It enables the library staff to acquaint themselves more closely with influential people in the community. These people, in turn, know the community and its various interests. This has benefited both the library and the foundation. Those contributions might not have been directed toward us if the involvement and knowledge of our programs had not been known. Even former foundation members have continued their contribution. By having an active foundation, this library has been able to take advantage of sizable donations we might not otherwise have received.

One task we need to perform is give more intense information about the foundation to bank trust officers and attorneys. Several attorneys have asked, on behalf of their clients, of ways to give to the library. Because these professionals are aware of the foundation, they have the opportunity to suggest a donation to us or the library as a way to help the local community. Although the foundation has been increasing in visibility, we need to target our publicity to this group for our next phase of growth.

Some contributors may not want to make a contribution to the foundation but directly to the library for whatever purposes the board desires. Could the library board direct the donation into the foundation? In all probability, no. But once again, you would have to check with your attorney. By transferring the money to the foundation board, the library board is losing control over those funds. The library board would have to consider their alternatives, among which would be spending it on needed items, depositing into the library account or establishing a trust account in the library's name. However, consulting with your attorney or a CPA would be advisable before proceeding.

The foundation started in 1985. At this time, the library was engaged in a fund-raising campaign to enlarge and renovate our 1901 building. Our professional fund raiser had recommended such a step since several possible contributors would only give to 501(c)(3)-designated organizations. While our fund drive was enormously successful, the foundation status was unnecessary. No funds were received for the foundation and reported to the I.R.S. This does not mean that there was not correspondence with the I.R.S. It was not until 1987 that contributors became interested in making donations to the Foundation. At that time, we contacted the C.P.A. that had helped us with the paperwork to get the foundation status reestablished. This included the I.R.S. and the Illinois office of the Attorney General. We chose a C.P.A. firm because of their familiarity with I.R.S. and the required filing of appropriate tax forms. We were able to get the foundation's status recognized once again by the I.R.S.

One important question for a library to consider is when is the most appropriate time to start a foundation? If the library is engaged in one major project and there is not another staff member available to devote some time to it, it would be best to wait. However, there is never an ideal time. There needs to be an expectation of the time it takes to get the organization started. Bylaws need to be written and adopted for filing with the appropriate paperwork. Board members need to be solicited. Again, Library Board members would be most appropriate for this important step. I would avoid our experience of waiting two years before becoming active. You will lose some of your potentially most active board members and can even lose some credibility if you are not careful. When we started, it was through the assistance of another library. Faye Clow of the Bettendorf (Iowa) Public Library provided sample bylaws, advice and her time to address the library board. There are many more libraries today with active foundations who would be willing to share their expertise to help another get started.

Financing will be necessary. It will be necessary to have an attorney or C.P.A. to get started. This could come from the library, a donor or Friends of the Library organization. Again, once we got started our Friends of the Library were very important in our foundation. They provided funds for the endowment fund and made contributions for printing brochures and other costs to get the foundation firmly established. They continue to make an annual donation for foundation operating and program expenses. This pays for an 800 mailing plus extras. An active member of the Friends is a member of the foundation board.

The foundation has two mail solicitations a year. During National Library Week, we advise donors to "Stay at home and read a book," rather then attending a fund raiser. The other, sent out in early November, is a year-end solicitation. We get assistance from our Friend's group or a local business to defray the costs, which means more funds can go into the endowment fund. We also have sponsored a Murder Mystery Play. In addition to having a good time, it provided an opportunity for board members (library and foundation) to participate in a library event and for the participants to learn something more about the library

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and the purpose of the foundation. We also have sponsored a night at the local dinner theater.

As I mentioned, the foundation had a delayed and very modest beginning. At the end of 1988, there was less than $5,000 in the fund, and the interest earned was less than $200. In 1989 we launched our first public support campaign by mail. By that time we had a brochure and book plates produced. The basis of the mailing list was contributors to our building fund campaign. Twenty-two contributors donated nearly $9,000. In 1990 we launched our first year-end campaign and 28 contributors donated more than $3,000. In 1991 we sold 223 tickets to the dinner theater, and after the expenses the foundation had raised another $3,000. Our year-end solicitation that same year increased 59 percent over the previous year and donors were more than double. Little by little, support grew each year. Some donors have contributed a little each year; some have contributed some years and not others. Some support has been tremendous and others have contributed as best as their budget could afford. In one year, we received two five-figure donations, one given anonymously.

Some fund raisers have been dropped because the work became greater than the rewards. The willingness to experiment along with taking ideas from the literature or from other community groups contributed to our success. The mailing list is a vital component to our efforts. Library and foundation board members have been crucial in developing this list because they have a wealth of knowledge of people in the community.

I cannot stress enough the importance of keeping detailed records. In the beginning we did not know how the foundation was going to develop. I documented each financial transaction, but not everything was well organized. Neither the board nor I could have envisioned how the foundation was going to develop. Having kept detailed records, all financial transactions could be traced and later credited to individuals. This was important when we started our listing by category to give proper credit, whether the person made a memorial contribution or an annual solicitation.

As I mentioned, there has to be a commitment of time. In our case it has been of the library administrative staff. The library public relations officer has designed the brochure, annual solicitation mailings and thank you cards. Foundation coverage in the newsletter has grown. Administrative staff has board meetings to coordinate on a quarterly basis. Financial

transactions and reporting as well as preparing the Illinois 990's have been done by library staff. As the foundation has grown, there has been greater sophistication in recording data. Each contributor has a financial record. Each fund raising event is tracked by the amount raised, the number of participants and the number of new contributors. We can compare year to year our successes. Each memorial fund has its file. A great deal of time is committed to our annual Columns of Support to ensure accuracy. The foundation's investments are made by the library.

Now, 10 years later, there is a need to re-examine and possibly make some changes in how the foundation is operating. In its last audit one need identified is to ensure adequate separation of financial transactions. Changes have been enacted to ensure the safety of foundation funds. Nothing is worse than to have bad publicity because of stolen funds. That could destroy the goodwill and faith the public has for the Rock Island Public Library Foundation. An area school district foundation recently had such a case in which their treasurer was indited for theft of funds. This demonstrated the importance of safeguarding our funds. I strongly recommend having a C.P.A. on the foundation board to establish sound fiscal procedures. Our foundation board is looking for other events to sponsor as well as other ways to assist the library. Another area to be examined is the expansion of board involvement.

After 10 years of existence there has been tremendous growth in the endowment fund and grants to the library. The library has established several new programs and is planning several more. The number of people making contributions annually is increasing as is the recognition of the foundation. The Board is conducting a self examination to provide for continued growth. Several areas of improvement have been identified. The foundation is firmly established and is promoting the growth of the library. We are now standing at the threshold. In 1997 the Rock Island Public Library will celebrate 125 years of service and as the first public library in the State of Illinois. We are using this as an occasion to increase public awareness and support.

Library buildings continue needing to be replaced, repaired, expanded and remodeled. Staff and technology changes continue to challenge library board and administrators. Through this, a foundation will be a permanent asset to the library as a source of funding, beyond which the city can provide, to enrich the lives of the people in your community. For that reason, it is important to become involved and to promote the establishment of a library foundation.

*]ames F. Warwick, Director, Rock Island Public Library.

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