Use of library website and staff time for fundraising

Question

I am reaching out to request a legal opinion regarding the roles and responsibilities of library staff in supporting board fundraising efforts, as well as the permissible use of library digital platforms for fundraising activities. As a New York association library, we strive to adhere to state guidelines and ethical standards and seek clarity on the following specific matters:

Answer

Before I answer, I have to put in this obnoxious disclaimer: THIS ANSWER IS ONLY FOR ASSOCIATION LIBRARIES.

I’m sorry. I know using ALL CAPS means I’m YELLING. But the distinction is important for these questions, so it warrants boosted volume.

Okay, with that obnoxious disclaimer out there, let’s get to the questions and answers.

Fundraising in Public Libraries

Question

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?

Answer

There are a lot of questions packed into this submission!

Let's take them one at a time.

First question: "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." [1]

Soliciting Donations for Public Libraries

Question

We are beginning our long-range planning process and are asking patrons to fill out a community survey to assess what the community wants to see in the library now and in the future. Thinking it was a good idea to raffle off gift cards to encourage participation, I gave my board trustees a letter requesting a donation of gift cards.

Answer

Following our "do not reinvent the wheel" rule for "Ask the Lawyer," prior to diving into this, we checked the "Trustees Handbook" posted at https://www.nysl.nysed.gov/libdev/trustees/handbook/handbook.pdf.  On page 57, it provides an excellent summation of the concern at play in the issue of trustees and f

Charitable organization filing requirements for small (under 50k) “Friends”

Question

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?

Answer

When one considers becoming a "Friend" of a library, several activities spring to mind:

Fundraising with GoFundMe

Question

A member asked if there are any legal issues to consider when using GoFundMe to fund-raise, especially for association libraries.

Answer

The lawyer answers…

Fund-raising in the current climate (or any climate) is tough.  There are state and federal accounting rules, bylaws, “best practices,” and internal policies to abide by, while at the same time there is pressure to make sure the campaign is well-executed, fun, and most of all: productive.