The Final Funding Frontier:Enterprising Libraries & Entrepreneurial Librarians

Cynthia Sturgis Landrum, MLSTieshka K. Smith, MPM

Southwest Chapter of the Pennsylvania Library Association Spring Workshop

May 17, 2013

The Scenario….PaLA has issued the following legislative alert:

Newly elected Pennsylvania Governor X has just released his/her first proposed budget. Gov. X’s proposed budget eliminates ALL funding for PA libraries.

Don’t think it’s possible?

Meet Piyush aka Gov. Bobby Jindal of LA

In the summer of 2012, Louisiana Gov. Bobby Jindal signed a $25 million dollar budget that cut an estimated $900,000 in state funding for Louisiana public libraries.

The governor’s chief budget aide, Paul Rainwater, said, “In tight budget times, we prioritized funding for healthcare and education. Operations such as local libraries can be supported with local, not state dollars.”Los Angeles Times Blog 6/28/2012http://latimesblogs.latimes.com/jacketcopy/2012/06/louisiana-eliminates-state-funding-for-libraries.html

Oh, there is more!Library code changes to significantly lower or eliminate municipalities MoE (Maintenance of Effort) requirements or municipalities cannot or will not meet the requirements:

The governor's proposed budget, released on March 1, eliminates maintenance of effort (MoE) funding for public libraries. The budget document reads, "The Governor recommends eliminating the requirement that municipalities and counties maintain annual local expenditures for public libraries at the average of the prior three years as a condition for being a member of a public library system.“

-From Mead Public Library (WI) http://www.meadpubliclibrary.org/about/moe

And The Dominos Fall…Federal funding, grants and strategic partnerships are impacted by local funding

What we do today…..•Advocacy•Cuts•Closures •Increase fines & fees •Supplement shortfalls w/donations, fundraising, grants

The future could be different…..

.

Centerville Library Enterprises

• Centerville Library Enterprises became a social business that supports Centerville Public Library• Library Director acts as CEO leading both the library enterprise

and traditional library services• Library rents commercial space at library facilities in choice zip

codes • Library operates the local vanity press • Library manages a research/knowledge management consultancy • Profits from enterprise support core public library services

Plainfield Library Co-op• Library cardholders and staff at the Plainfield Library decided

to take over ownership and management of the Library• Cardholders and staff voluntarily agreed to contribute

equitable amounts (outside of their tax obligation) to raise capital for the library• All Library Co-op members control capital, elect the Library

Board from amongst the membership and participate in policy-making and decision-making• Non-members can use the library, but have no decision-

making authority (unless they become members).

Midtown Library Services, Inc.•Midtown Library adopted a for profit model• Engaged in managed competition in neighboring

municipalities to provide library services in these communities• Leveraged size to negotiate low prices based upon volume• Lower expenditures through resource sharing and

eliminating administrative redundancies amongst its clientele

Enterprising Libraries Require Entrepreneurial Librarians

An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a resource.- Peter Drucker

Let’s talk about potential enterprise opportunities in your

libraries and/or community

Meet a few entrepreneurial librarians

Gina Milsap The Topeka and Shawnee

County Public Library Speakers Bureau positions the library staff as community experts. Potential Enterprise Opportunity: Library Consultancy

Robin LettieriThe Port Chester-Rye Brook Library (NY) began using paper products with printed ads in 2012. The Library saves an est. $1000 annually. Potential Enterprise Opportunity: Naming RightsCommunity PR/Marketing Channel

Jamie LaRue • Douglas County Library (CO) has

positioned itself as an library innovator in the eBook landscape.• Inked profit sharing deal with

non-profit eBook retailer, BilbaryPotential Enterprise Opportunity:Digital Publishing Digital Retail

Siobhan Reardon• In Feb. 2013, the Free Library of

Philadelphia began placing paid advertising on their website• Free Library is advancing the ideal of

premium services in the future

“Adopt an aggressive entrepreneurial mindset that will encourage experiments and pilot programs. The uncertain environment we face requires us to become more entrepreneurial.”- From the Free Library of Philadelphia Strategic Plan 2012-2017

Experiment with someone else’s money!

Fund Development for Enterprising Libraries – Strategies to Consider• Target private and foundation grant opportunities• Demonstrate broad community need, interest and proposed

impact/benefits• Show alignment with organizational vision/mission/purpose• Propose a sound program design• Demonstrate leadership capability and staff capacity to deliver• Craft a credible sustainability plan• Invest in relationship building

Why target private and foundation grant opportunities?

• Smaller in size but offer more flexibility • Technical assistance from a program/project officer adds value and

third-party perspective• Dollars can be used to seed a fully fleshed out initiative and win

support from other funding partners• Good for developing and testing new ideas that are a natural

extension of the organization’s mission• Demonstrated successes communicate to other potential funders

that organization is a good risk

Demonstrate broad community need, interest and proposed impact/benefits – Questions to Consider

• Does the community want this project? How do you know?• Is there a need for this project? Is this being done somewhere

else? If so how can that capacity be leveraged through partnership/collaboration?• Will the community be willing to co-invest? If not, why not? • How can the project find a way to engage the community

around this question?

Show alignment with organizational vision/mission/purpose

• Funders hate more than anything the idea that a proposed project is a way to fill in funding gaps• Make the connection between the proposed project and what

the library stands for – the funder can’t do that for you

Create A Thoughtful Program Design that Shines• Is this project design evidence based? • How do you know it’s going to achieve the desired outcome? • How do you know it’s the right/best approach for your target audience?• Is it feasible?• Is it outcome-driven? What are the measures and can you collect and

analyze the data?• Does it speak to the who, what, when, where and how of what will be

delivered?• Anticipate spending a significant portion of man-hours thinking about

and writing this section of your proposal.

Demonstrate Organizational Capacity to Deliver• Sometimes it may be useful to invest in training to bring staff up to

speed regarding a new delivery model• Build those costs into your budget• Leaders should have a demonstrated track record in delivering

grant funded projects• Who at the board level can be a champion for this project?

Sustainability Matters!• Grants should be viewed as a way to seed the project itself or critical

aspects of the project, not support it on an ongoing basis – think 1-3 years max!• With that said, you’ll have to argue a compelling case for how the

program will continue after the funding ends.• Demonstrate long term earned income potential• Speak explicitly to how you will make strides at regular intervals in

creating a self-sustaining enterprise. • Don’t be afraid to crunch the numbers and be honest • Don’t forget to calculate the value of volunteer and in-kind support

that can be leveraged against the grant

Budgets Matter!• Grant budgets should tell a story that complements and adds another

layer of support to the grant narrative• Have a transition plan for repurposing staff before grant award, not

afterwards because it makes for a smoother implementation phase during the first 60-90 days after grant award

Final Thoughts on Fund Development Strategy Development for Enterprising Libraries

• Focus on relationship management, not just grants management• Share successes• Keep the lines of communication open• Seek feedback• Transparency is necessary for credibility• Continue to brainstorm opportunities that will enhance service

delivery; could be ripe opportunities for seed funding

Crafting the Ask: Centerville Library Enterprises Enterprise Strategies• Centerville Library Enterprises became a social

business that supports Centerville Public Library• Library Director acts as CEO leading both the

library enterprise and traditional library services• Rent commercial space at library facilities in

choice zip codes • Operate the local vanity press • Manage a research/knowledge management

consultancy • Profits support core public library services

Funding OpportunitiesRequest funding for:• Marketing, promotion, capital

improvements to designated spaces for coworking or other community-based uses

• Marketing, promotion, outreach to local authors

• Staff training • Staff time to work with community

stakeholders (government, businesses) seeking expertise and technical assistance

• Other ideas?

Crafting the Ask: Plainfield Library Co-opEnterprise Strategies

• Library cardholders and staff at the Plainfield Library decided to take over ownership and management of the Library

• Cardholders and staff voluntarily agreed to contribute equitable amounts (outside of their tax obligation) to raise capital for the library

• All Library Co-op members control capital, elect the Library Board from amongst the membership and participate in policy-making and decision-making

• Non-members can use the library, but have no decision-making authority (unless they become members).

Funding Opportunities• Request funding for:

• Outreach and education/training of library cardholders and staff to increase capacity and improve ownership and management transition and outcomes

• Survey of stakeholder groups to determine level of co-investment and help determine capital fundraising targets

• Marketing and promotion to non-members to increase participation

• Other ideas?

Crafting the Ask: Midtown Library ServicesEnterprise Strategies• Midtown Library adopted a for profit

model• Engaged in managed competition in

neighboring municipalities to provide library services in these communities

• Leveraged size to negotiate low prices based upon volume

• Lower expenditures through resource sharing and eliminating administrative redundancies amongst its clientele

Funding Opportunities• Request funding to:• Conduct independent evaluation

to determine the impact of model adoption• Formalize a consortium to

facilitate seamless resource sharing among neighboring municipalities• Other ideas?

Implications of Library Enterprise• Shifts in power and influence

• Library gains more control over resources and direction• Entrepreneurial staff may become more influential • Library members and consumers may become more influential

• Forfeit government protections/provisions• Traditional or core library services may become marginalized • Public Perception

• Should the library be engaged in enterprise initiatives?

• Talent Management/Development • Who in the library does this work?

• Advocacy becomes less grassroots; more political lobbying effort• Risk of business failure

Discussion

More Questions? Contact us…Cynthia Sturgis Landrum, MLSEmail:Cyndee.landrum@Verizon.netBlog: The Punctuated Librarian: Advancing Ideas About Adaptive Libraries

Tieshka Smith, MPMEmail: momofthreephotography@yahoo.comBlog: Photography Without the Pretense