Recently Asked Questions

A community member hosts a “free with donation” yoga class at our library, and attendees are encouraged to make a donation each class. These donations are collected by the yoga instructor who hands them to the circulation assistant and identifies it as a donation to the Friends of the Library organization. She keeps her receipts and totals the money each year, claiming these donations on her taxes as her contribution to a 501(c)3 organization (the Friends of the Library).

So my question is, does this constitute as fraud in any way? If so, will this be problematic for the yoga instructor, the Friends of the Library, or the Library itself (municipality) for hosting the event? They are collecting money from other people for providing a service and claiming all the donations collected as their own for a tax write off.

Any guidance on this will be appreciated! Perhaps a simple solution would be to re-word how this is done, saying that donations to the yoga instructor will be made to the yoga instructor and not advertised as a fundraiser for the Friends.

Thank you!

Is it required or advised that the Friends group (ours is a separate non-profit) have their own insurance? Monetary restrictions have resulted in our FOL group dropping their annual insurance as they understood it was not "required."

[This question about Friends of the Library and $$$ is from a municipal public library]

We have a newly re-organized Friends group that does not have 501(c)(3) status but would like to accept donations. I know that the library can act as a pass-through for grants but I was wondering if this also applies to undesignated monetary donations?

I have always been under the impression that it is illegal for public libraries to fundraise on their own, aside from 2 book sales per year. If a school district public library no longer has a Friends Group, can it host fundraisers? For example, could the library itself host a bingo night and raise money? Can a school district public library send out a fundraising letter?

Or is it important that all library staff and trustees refrain from fundraising efforts in order to separate public funds from fundraising? I am struggling because we have a lot of great ideas, but the future of our Friends Group is unclear. I am wondering what options are available to me as a library director, and my Board of Trustees, if the Friends Group were to dissolve.

Thank you so much.

There seems to be a trend for libraries that have Friends groups to hold fundraisers, donations, and membership drives at the library. In some instances, the library collects money for the Friends and pays it to them at a later date. Considering the cash handling procedures libraries have to worry about, is it allowable for libraries to collect Friends membership dues and donations then pay it back to the Friends?