Recently Asked Questions (RAQs)

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?

Are incorporated "Friends", who do not receive over $50 thousand, do not have paid staff, and are only able to provide the funds to the library, required to register [with the New York Attorney General] and submit the CHAR500 form?

There are so many ways the relationship between a library and their Friends can get "complicated."

Can you provide a template for an agreement between a library and their Friends?

Is it legal for a Friends of the Library group to hold their funds and not to use those funds to support the library's mission? OR refuse to pay for library program and services when ask by library staff?
Can they lose their 501c3 status, if it is proven that the funds are not being used to benefit the library?