All libraries in Kentucky are non-profit governmental units, operating as 170(c)(1)’s. The IRS will deny public libraries the 501(c)(3) status. However, there are some grants that will only allow organizations with a 501(c)(3) status to apply. This is one reason that libraries frequently are supported by a Friends group or a foundation with a 501(c)(3) status.
Also see the following pages: Foundations, Friends Group, and Fundraising.