Submission Date:
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:
Staff Involvement in Fundraising
Are there any legal restrictions or guidelines that would limit or prohibit our library staff from directly or indirectly assisting in fundraising efforts organized by the library board? We are interested in understanding any relevant employment or nonprofit regulations that would guide staff participation in these activities.
Use of Library’s Website and Facebook Account for Fundraising
Can the library board legally use the library’s official website and existing Facebook account to promote or facilitate board-led fundraising campaigns? We would like to ensure that these actions comply with any applicable state laws and nonprofit guidelines that might apply to public association libraries in New York.
Creation of a Library Board Facebook Account for Fundraising
If the above is permissible, is it also acceptable for the board to establish a separate Facebook account specifically for fundraising purposes on behalf of the library? We are particularly concerned with understanding the necessary distinctions (if any) between a board account and the library’s official social media presence.
Your legal guidance on these questions will be invaluable in helping our board make informed, compliant decisions about our fundraising strategies and staff involvement. If any additional information is required for this analysis, please let me know.
Thank you for your attention to these matters. We look forward to your advice.
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.
QUESTION: Are there any legal restrictions or guidelines that would limit or prohibit our library staff from directly or indirectly assisting in fundraising efforts organized by the library board?
ANSWER: Yes, there are many, but most are surmountable with careful planning. To illustrate both the issues and the careful planning that can surmount them, here are two short stories. [Readers who don’t want to wade through two faux fairy tales to get to an answer can skip to “THE (BETTER) END.”]
Story #1: The Three Friends
Once upon a time, three friends worked at an association library: a library page, a library clerk, and a library director. The three friends didn’t let their differential power dynamic interfere with their friendship and were happy as they put away books, helped patrons, and directed day-to-day operations at the library (respectively).
One day, however, things changed. Out of the blue, the page was directed to make phone calls to all patrons who had borrowed books within the last year to ask for donations to the summer reading program. The clerk was told they would have to work that Friday night, paid, at the “Pizza for Pages” fundraising dinner. The library director was told to write and practice delivering a pitch to seek a large donation from a major regional philanthropic organization.
The three friends’ peaceful[1] work life came to a screeching end. The page worried that the calls to patrons were an invasion of privacy.[2] The clerk did not regard selling pizza as part of his job description. And the library director—while an excellent library director—had never been trained in seeking or managing charitable contributions.
It was all very stressful, and the three friends started looking for new jobs.
THE (CAUTIONARY) END
Story #2: The Three Other Friends
Once upon a time, there were three other friends at an association library: a library page, a library clerk, and a library director. Their differential power dynamic was occasionally an issue in their friendship, but they were united by their love of textiles and trivia.
The three friends were happy as they put away books, helped patrons, and directed day-to-day operations at the library (respectively). They also felt very accomplished in their careers, because in addition to their regular duties, each had specific language in their job description that made them an integral part of the library’s fundraising.
Part of the page’s formal duties were to “help maintain a donor database”—separate and apart from patron records—of people who had expressed interest in donating to the library. The page also sent out regular, scheduled donation solicitations that had been reviewed by the library’s accountant and fundraising counsel, making sure people understood how to make a tax-deductible donation to the library.
Part of the clerk’s formal duties were to “assist with fundraising, event planning, and presentations,” and the clerk’s regular hours were sometimes adjusted (or the clerk was paid overtime) to assist with fundraising events. As the clerk performed this duty, they often had to consult the library’s policies and procedures for working with the volunteers who helped with the events.
The library director felt particularly accomplished, because even though she didn’t have any experience with grants and grant management when she started, the library paid for her to attend training sessions until she was confident about applying for grants and managing them. As the director built these skills, the library board developed and passed policies on managing grants and soliciting/accepting donations, while the library’s treasurer took the time to understand the regulatory requirements of managing donations and grants.
It was occasionally stressful, but the three friends felt supported and confident in their jobs and didn’t spend a lot of time looking through job listings.
THE (BETTER) END
The take-away from these two tales is simple. At an association library, employees should not assist with fundraising unless:
- To comply with both governing ethics and laws pertaining to patron confidentiality, there is great care to not use library patron information to solicit donations. Instead, a completely separate database built using direct expressions of donor interest should be used; frequency of use or borrowing habits should not be referenced in solicitations;
- Fundraising duties are in the employee’s job description[3] (not just “additional duties as assigned”);
- The employees performing fundraising duties are still being supervised by their supervisor,[4] not a trustee, contractor, or volunteer;
- The library has a full array of policies governing gift/donation solicitation and acceptance;[5]
- If seeking grants (governmental or private) is part of the effort, the library has a full array of grant management policies;[6]
- If volunteers are also helping with fundraising, there is a volunteer policy that includes confirming volunteer service by letter, and the volunteers are covered by insurance;[7]
- The library is providing employees required to solicit gifts with appropriate on-the-job training;
- If the library is using a paid consultant or external fundraiser to help with fund-raising, that person or company’s service should be confirmed with a written contract.
Basically, like all things, fundraising by employees at an association library should be planned and overseen with care.
Thank you for giving me a reason to get all that out there!
NEXT QUESTION: Can the library board legally use the library’s official website and existing Facebook account to promote or facilitate board-led fundraising campaigns?
ANSWER: Yes, as long as the library has a full array of policies governing gift/donation solicitation and acceptance, and the policy includes solicitation via social media.[8]
QUESTION: If the above is permissible, is it also acceptable for the board to establish a separate Facebook account specifically for fundraising purposes on behalf of the library?
ANSWER: Yes, as long as the library has a full array of policies governing gift/donation solicitation and acceptance, and the policy includes solicitation via social media.
Unlike other public libraries, an association library is not subject to FOIL, so the considerations about record-keeping that sometimes arise when quasi-governmental entities use social media are not present here. However, a board should take great care to make sure solicitations on the library’s social media account do not distract from the primary purpose of the account, and if the solicitations are on a separate account, that the separate account is still owned by the library.
The member’s careful questions are the right approach this issue. Fundraising by a library—association or otherwise—should never be a spontaneous activity. An association library engaging in fundraising should have a well-developed array of policies, and if library employees have fundraising responsibilities, those responsibilities should be clearly stated. If the library is using volunteers and/or paid consultants to help fundraise, that service should also be governed by policy and with attention to compliance (including a written contract for all external services).
The policies needed to make informed, compliant decisions about your association library’s fundraising strategies and staff involvement are bolded in this answer, and where there are templates or other relevant information, this answer includes them in the footnotes.
Thank you for a serious and important array of questions.
[1] And even idyllic, as their town was book-ban free.
[2] Plus, they preferred texting.
[3] Job descriptions should be reviewed routinely to ensure they are accurate.
[4] Trustees should not supervise employees except for the director.
Tag:
Fundraising, Donations, Board of Trustees, Association Libraries
