Home | Funding and Financial Opportunities (Summary)
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SCOPE

The issues dealt with in this guideline include:
Public sector funding
Income generation
External funding
Partnerships
Specialist fundraisers
Future of competitive bidding

POLICY ISSUES
Public libraries need a consistent level of core funding in order to plan such essentials as the purchasing of books and other resources, the maintenance of buildings and staffing-levels. They also have to develop and implement new programmes and services to meet the evolving needs of the communities they support (this is true of the social policy agenda - see social inclusion; lifelong learning; e-government; information; disabilities; children;), and to develop services for a digital era - see resource discovery; digitisation; multimedia; personalisation. Public libraries are under increasing pressure to offer innovative digital services and to ensure that library staff have the knowledge and skills to work in this context.

Public libraries remain are still largely dependent on public sector (local government or central government)funding, although the pattern is changing somewhat. Some countries (e.g. Ireland, Latvia) have achieved considerable success in recent years in raising the level of direct public funding for public libraries. But taking Europe as a whole, the level of public sector funding derived from taxation is mostly static, while there are increasing opportunities to apply for grant funding and to consider charging for newer types of service. 

In some countries (e.g. those of Central and Eastern Europe) funding responsibilities have been devolved, gradually over the past decade, from central to local government, in the context of a general transition in administrative and democratic responsibilities. Most frequently, municipalities or other local authorities receive block grants from the state and subsequently decide on the exact amount to be allocated to the libraries. It is unusual for this to be supported by any centrally-imposed per capita standard or formula, although the performance of statutory obligations is in some countries monitored or audited (see Audit Commission)

However, percentage-based or other formulae (e.g. 'matching funds') by which local and central government share funding responsibilities are still quite common, for instance central government (usually the Ministry of Culture) may support public libraries by providing financial support for capital projects (buildings), library automation, equipment such as mobile libraries and training. In some countries, where there is a regional 'level' of public libraries, this is directly funded in all aspects by central government.

More information on funding patterns in individual countries is available in the Country Reports on PULMANWeb.

While the level of statutory funding available in the past may have been adequate to fund the traditional service, the demands and expectations of the public are changing. In recent years the cost of introducing new information and non-book based services such as Internet access have added to costs. The additional costs of developing websites and access to digital content continue to expand along with the range of services expected of a public library. At the same time public libraries are being challenged to assess their raison d' être and the services they offer; see performance.

The increase in direct public funding of public libraries in Europe was only 16% between 1991 and 1998 (See LibEcon). In response to this, Public Libraries have sought to diversify their sources of funding. In the same period income from fees and charges increased by 134% and income from 'special funds' by 133%. The LibEcon millennium study further illustrates trends in library income.

Public libraries must operate within the limits of the legislation establishing libraries and defining library services. In some countries public libraries are required by law to provide 'core' services without charge to the end user, although this is by no means universal. Furthermore, there is no universally accepted, prescriptive definition of core services. Indeed, the current legislation in some countries was drafted before the advent of the digital era, thereby restricting the extent to which IT-based services (for example Internet access) can yet be considered part of the 'core' for public funding purposes.

Libraries need to consider whether or not they should seek to augment their core funding by any or all of the following means:

• Lobbying and advocacy at national and local levels.
• Influencing public opinion and forming groups of friends of the public library
• Applying for grant funding.
• Outsourcing or joint service delivery with other organizations or the private sector.
• Income generation or charging for services.

There is also an evident case for public libraries to broaden the scope of public funding which they seek to include that for areas such as social inclusion, lifelong learning, e-government, employment and regional regeneration programmes. This may involve funding from other national Ministries or local departments other than those directly responsible for public libraries and also from European Social Funds.

Public libraries in many - but not all - countries were founded with the ideal of providing free access to books and reading matter, specifically for those who did not have the money to provide them for themselves. This remains a strong aspiration for many public librarians and some democratically elected bodies which fund libraries. There is an argument that in the digital age this should be broadened to include access to digital materials, with all that implies for access to suitable infrastructure, staff skills, licences, etc.

The IFLA/UNESCO Public Library Manifesto states "the public library shall in principle be free of charge" and IFLA has gone on to assert that "charging users for services and membership should not be used as a source of revenue for public libraries, as it makes the ability to pay a criterion in determining who can use a public library. This reduces access and therefore breaches the fundamental principle that the public library should be available to all. it is recognised that in some countries with very limited financial resources for public services a policy of 'cost-sharing' has been introduced, as a result of which subscriptions for use of the library are levied. this practice denies access to those unable to pay and should be seen as an interim situation and not as a permanent feature of public library funding".

Some external funding bodies, for example the Gates Foundation Access to Learning Award and NOF Digitisation Programme (UK) have linked awards of funding to the provision of digital resources which are available free at the point of service.

Nevertheless, it is clear that there is no such thing as a public library service which is 'free' of cost. Even if services are free to the user at the point of delivery, they are paid for from public taxation or private sources. The difficulty which public libraries have faced is in unlocking a sufficiently large share of funding allocations from central and local government. Furthermore, in predicting trends for the next 10 years, in its 2002 survey report The Public Library in the Electronic World, NAPLE has drawn attention to the probability of budget reductions and a focus on alternative forms of financing and income generation. Across Europe, there is currently considerable variety of practice.

This is the circle which needs to be squared, and unsurprisingly, the issue has become something of a political 'hot potato', perhaps especially within the professional community.

Home | Funding and Financial Opportunities (Summary)
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