Friends of the Library Groups and Library Foundations
As governmental entities, libraries are generally 170(c)(1) tax-exempt entities. With this status, donations to the library may offer tax advantages to the donor. Many libraries, rather than be directly involved in fundraising events, are supported by a local Friends of the Library Group or Library Foundation. Such groups, usually with 501(c)(3) status, maintain their own funds and use them to assist the library. Some grants require a 501(c)(3) tax-exempt status; having a Friends Group spearheading grant applications can be quite beneficial.
Friends Groups or Foundations should be organized as a completely separate entity from the library. Otherwise, they may be subject to the same laws and regulations as the library. To avoid violation of any state or federal laws on soliciting charitable donations, the library board should consult an attorney before starting a major fundraising campaign or establishing a Friends of the Library Group or Library Foundation.
Friends of the Library Groups
Friends of the Library Groups are non-profit charitable groups formed to support libraries in their communities. Individuals who join the Friends of the Library Group are interested in providing support for the programs and services of their local public library. They are volunteers working with the library —staff and trustees —to provide grassroots support. A Friends Group is limited only by the imagination of the members and by the charge under which the group operates.
The most commonly cited benefits for the library and community include:
- Increasing appreciation for library personnel and services
- Heightening understanding of the function and operation of the library
- Expanding services and programs with the assistance of volunteers
- Increasing bequests, donations, and gifts
- Campaigning to fund additional acquisition of library materials and equipment
- Broadening support for library issues and challenges
- Enhancing community involvement
- Considerably easier to create than a Foundation and set up cost is minimal
A Friends of the Library Group usually has a 501(c)(3) designation from the IRS and is registered with the Secretary of State's office. A 501(c)(3) designation provides official recognition and enables people to make donations with certain tax advantages. Before a Friends Group is initiated for your library, the primary mission and function should be determined. Involve the library board, staff and committed community members in this important discussion.
The Friends of the Library Group should not be formed based on a vote by the library board. If it were to be created by a library board vote, the Friends Group would always be considered an arm of the library and would be subject to the same laws and regulations of the library.
Best practices for Friends of the Library Groups include:
- Obtain 501(c)(3) status
- Maintain an arm's-length relationship with the library
- Identify a well-respected community member to oversee formation of the group
- Create articles of incorporation, bylaws, and appoint or elect officers
- Contact the Friends of Kentucky Libraries for support and advice
- Safeguard the library's name in fundraising and in other areas by agreement with the group regarding the use of the library name and disposition of any funds collected utilizing the library name (or any derivation of that name)
- When independent from the board, the group is not subject to state purchasing guidelines
- Do not use library funds to establish the group
Library Foundations
Like Friends Groups, a Library Foundation is a separate legal entity formed for the purpose of enhancing and expanding library programs and services. Library Foundations typically assist large library systems raise large sums of money through ongoing, capital fundraising efforts. For most libraries, a Friends of the Library Group may be the best way to organize library supporters to increase awareness and to raise funds for library projects. See note on
Tax Exempt Status.
Revised July 14, 2025