The library board may find that normal funding is not sufficient to fund all services and programs of the library. The board can examine other fundraising options. Before starting a major fundraising campaign, the library board should consult its attorney to avoid violation of any state or federal laws on soliciting charitable donations.
Many libraries, rather than being directly involved in fundraising events, work with a local Friends of the Library group or a library foundation. Such groups, usually with 501(c)(3) status, maintain their own treasury and use their proceeds to fund specific projects at the library. There are some basic differences in the purposes and operations of Friends and foundations. See
Friends of the Library Groups and Library Foundations for more information.
Friends groups and foundations can sell books, supplies, and/or promotional items to raise funds. For questions on collecting sales tax, please contact the Department of Revenue. If a library, Friends group, or foundation has a raffle or uses gaming to raise funds, a Charitable Gaming License may be required. For more information please contact the Department of Charitable Gaming.
See note on
Tax Exempt Status.
Revised March 3rd, 2023