ATTACHMENT 2

Enriching Our Community by Helping Our Library Collections Grow

May 2, 2007

Mayor Kevin Foy
And Chapel Hill Town Council
The Town of Chapel Hill

Re:  Donor Recognition Study and Request
       Chapel Hill Public Library Foundation

Dear Mayor Foy and Town Council,

In October of 2005 the Library Foundation petitioned the Council to adopt a naming rights policy for the Town of Chapel Hill.

As you recall, last Fall I withdrew the petition as the Foundation didn’t believe enough research had been done on the matter. Late fall through this spring, the Foundation’s campaign consultant, Melissa Cain, has been researching the issue of donor recognition. Attached for your review is her report titled “Donor Recognition in Selected Libraries: A Report for the Chapel Hill Public Library Foundation.”

The report is organized into three sections:

            Pages 2- 4 – Executive Summary which is a synopsis of the full report.

            Pages 5 – 15 – Full Report.

            Pages 16 – 22 – Appendix with donor recognition from two selected libraries.

This report addresses the subject of using donor recognition as a fundraising method to supplement tax-based dollars with private support to benefit public libraries. This option is an effective tool for public library foundations who seek private funds to supplement public dollars. In general, recognizing donors and offering naming opportunities works especially well in arts and culture where competition for private funding is intense.

This report examines five libraries in different communities (Madison, Boulder, Ann Arbor, Bangor and Clearwater) to learn how they incorporate donor recognition opportunities in fund-raising activities. 

Presently, the Chapel Hill Public Library Foundation is engaged in the Ensuring Excellence Capital Campaign, a five-year effort begun in 2006 and ending in 2011. The purpose of the campaign is to raise private funds that will help increase the Chapel Hill Public Library’s book and media collection by 68,000 items by 2011, as recommended in the 2003 Library Master Plan.

Although the $2.5 million campaign goal is ambitious, it represents a real need in our community. To reach this campaign goal, the Foundation will employ many different fundraising tools and tactics. That is why the Foundation is examining donor recognition opportunities as ways to help attract charitable gifts.         

In many highly educated communities such as ours, the population is growing faster than the tax monies available to support libraries and user demands. As a result, library foundation fundraising programs frequently include capital campaigns with goals exceeding one million dollars. As more library funding needs are identified, more fundraising methods are necessary to attract donations. Opportunities for donor recognition vary from library to library. The purpose of these opportunities, however, is the same. It is very important that non-profit institutions such as libraries or library foundations recognize gifts of consequence with tact and good taste.

In America, philanthropy carries a tension between morals and money. Suspicion about the politics of goodwill and corporate giving exists. In addition, there may be concern about donor motivation and intention. (Is the donor trying to “purchase” credibility or special favors?) Trust and an understanding of shared values must be established during the cultivation of the relationship between the prospective donor and the non-profit. To avoid problems and to clarify their values, non-profits rely on official policies for the receipt of gifts and for the recognition of gifts.

Therefore, the Library Foundation is requesting that Council develop a donor recognition policy to guide the Foundation as we seek private funding to benefit the library and save tax dollars. If the Council desires, representatives from the Foundation would welcome the opportunity to work with the naming committee to develop a policy.

Thank you for your kind consideration of this request, which I submit on behalf of the Chapel Hill Public Library Foundation.

Sincerely yours,

Gene Pease
President
Chapel Hill Public Library Foundation
PO Box 4771
Chapel Hill, NC  27515