Survey on Fees for Library Services: For Love or Money
Libraries and the struggle to remain "free" Sep 15, 2010Public libraries are walking a tightrope. They are a free service to all, but increasing funding cuts have some libraries turning to a wide variety of revenue-generation strategies to ensure financial security. Gift and coffee shops, meeting room rentals, classes, and more are being launched in hopes of filling funding gaps. In fact, in a recent survey by LJ more than 40 percent of 408 respondents say they feel pressure to reimagine even such core services as interlibrary loan (ILL) and holds as fee services.
The urgency comes from multiple sources. About one-fourth of respondents say they feel the pressure or have a mandate from local government, and nearly half of those surveyed have Friends group- and board-generated initiatives in place. Others are trying out fee-based services that improve customer service or position the library as a destination: What's a new central library without a café? However, nearly 60 percent are looking at revenue generation as a response to funding cuts, feeling a need to "self-fund."
And there's the rub: discussion with librarians and analysis of results show that revenue generation that actually generates revenue is elusive, and, in fact, such activities can often drain resources. While these programs can help change the perception of the library, even increase goodwill (like that café), they are no panacea for funding dilemmas.
The revenue landscape
With nearly 100 percent of responding libraries reporting some sort of income-producing initiative, what's out there? The classic library fundraiser-the onsite used book sale-tops the charts and is in place in 88 percent of responding libraries, particularly smaller ones. More than one-third of libraries serving populations above 500,000 provide gift shops, and over 25 percent have cafés or coffee shops. The figure drops to about ten percent in libraries serving populations of less than half a million. Nearly 20 percent of responding libraries-large and small-are trying consignment sales of used books through services such as Better World Books. Libraries cite a remarkable range of other income producers, such as partnerships with online booksellers that earn them commissions, library-sponsored trips, after-school and vacation camps, fee-based classes, and meeting room rentals, but these are far less common-used in fewer than ten percent of responding libraries.
Excluding overdue fines, more than one-third of responding libraries say core services that support lending of materials have fees attached. That is fairly consistent across both size of library and region. As for the services, ILL and rental of premium items such as DVDs, video games, and hot best sellers are the most likely to be fee-based. "We charge only for 'entertainment' videos and DVDs. There is no charge for nonfiction," says Joanne Straight, head librarian of the New Bern-Craven County Public Library, NC. "We changed our fee about three years ago. It extended the borrowing time from two or three nights to one week for $1."
Few libraries have added staff to support these enterprises, with the exception of gift and coffee shop workers. Instead, libraries are powering their revenue ventures and managing fees with volunteers and staff already in place, many of whom have to deal with customers who aren't happy about reaching into their wallets. As a director of a mid-size New Jersey library recalled, "I remember when the library was free," a customer grumbled to her. Overall, 37 percent of libraries say public response to fees is somewhat negative; in libraries serving the largest populations, this climbs dramatically to 87 percent.
And what does all this revenue add up to? A rather depressing picture: in the largest libraries (those serving populations of more than half a million), the median revenue is about $10,500 annually. For the smallest libraries, it's about $2000. Coffee shops-often mistaken for cash cows-generate a median income of $2500. Compare that to average annual revenue from the far less glamorous used book sale, which generates a median income of $5000. Passport centers-in place in only three percent of responding libraries-bring in the most money, $34,000-but that's hardly enough to qualify as a path to financial independence
So, why are we bothering?
The upside of making money
Even if they don't completely cover costs, some fee-based services enable the library to launch or sustain programs that might not otherwise be possible. Ginnie Cooper, chief librarian of the District of Columbia Public Library, says revenue-generating ventures, like all library programs, need to be evaluated for the totality of the payoff. Indeed, 21 percent of survey respondents have put together a package of services that has generated a positive response from their communities.
Consider the role of cafés. They struggle to break even but are popular with patrons and can make the library a more welcoming, well-rounded destination. And gift shops can provide not only convenience for patrons-handy for a flash drive in a pinch-but also marketing for the library through the sale of branded items. A logo-bearing coffee mug can be a powerful ad in an office.
Some fee-based services can enable rich community connections. Cooper notes that during her tenure as director of Oregon's Multnomah County Library, they trialed hosting events such as weddings and bar mitzvahs. In addition to absorbing some of the halo of a milestone life event, the library broadened its customer base. "We brought new populations into the library whom we might never have met. Plus, they saw us in an entirely new way," she says. While never self-sustaining, the program was deemed positive enough that the library funded it for two years.
On a smaller scale, Steve Martin, director of the Sheridan Public Library, shares his expertise in graphic design and photo restoration with residents in this small Indiana town. The program started when Martin noticed customers using copy machines to reproduce old family photos. "I used some of the library funds to purchase a scanner and began to offer patrons the opportunity to digitize their old photos. If they were faded, creased, or otherwise damaged, I could digitally repair them to some extent. Word began to spread and people just started bringing in their old pictures," he says.
He set prices to cover materials and some equipment-a laser printer and a couple of laminators. The equipment enables the library to create quality graphics for its own use, but Martin says the goodwill the program generates in the community is the real payoff. "The smile on grandma's face when she sees that old photo brought back to life is worth a million bucks. And someplace down the line when the library is being bad-mouthed or we are looking for new funding, grandma is going to remember us and how nicely she was treated."
Perhaps the greatest impact of fee-based services is in the perception they create of the library. These programs show commitment to pitch in in an era when governments are under extreme budget constraints. "We can't say 'absolutely not,' " says Cooper. "We need to show our openness to look at new ways to do business. The greatest benefit to doing so many of these things is that we can be seen as understanding budget issues and putting forth effort to generate revenue."
Fees as management tools
A variety of libraries note that fees help them control user behavior that saves staff time or improves service to customers. For instance, one Illinois-based library is among those charging restocking fees for reserves that aren't picked up. Its director laments the "double-whammy" of staff time picking and reshelving reserved materials combined with the loss of circulation of high-interest items. The library instituted a 50¢ fine per item not picked up. "We waive the fine the first time it happens but do enforce the policy for any subsequent occurrences," she says. "We had push back initially [from customers] but have found that we have far greater compliance with patrons picking up their reserves on time now. We hated seeing high-interest materials sitting unused, and our policy has helped to resolve the issue."
A midsized library in Ohio has instituted nominal fees to separate serious requests from those that are frivolous after the library's levy failed in order to reduce the staff workload generated from special requests. Requests dropped by 65 percent, enabling the library to cope better with staffing cuts. And at a major Midwestern metropolitan library, the library uses fees for best seller rentals to control the long waiting lists for these books, which the library notes cause far more grumbling than a nominal fee.
But is there a hidden cost? Dramatic declines in requests and waiting lists may also mean loss in circulation and use of the library. At a time when libraries are fighting for position in the community hierarchy, they may be ceding one of their most unique and powerful competitive assets-the ability to provide great service and charge nothing.
Who loses?
It's no wonder then that a rising chorus of voices finds these new ventures to be often useless and distracting and in conflict with the mission of the public library. "There's always somebody with this idea for how the library can be self-supporting. They're going to charge for parking spaces and library cards and on and on. At some point, we start resembling something other than a library," says Cooper.
Commenters in the LJ survey consistently agree. One respondent from a small California library tells of trying a paid "premium" library membership that had, among other perks, access to the library on days closed to others. Not only did the service attract few users, it was deemed elitist. Nancy Simerl, manager of the Sherburne Public Library, NY, believes fee-based services may turn away those who need them most. "Nothing about our library is useful to this community if the folks in greatest need are afraid or ashamed to come into the building because of cash-flow issues."
Tricia Perry, of the Mills Public Library, MN, has seen that happen first-hand. "I remain opposed to the imposition of fees for we never really know what someone's socioeconomic reality is," she says. "Even charging for museum passes; at $1, it seems a nominal fee. But when the woman who was reserving the pass whispered to me, 'I'm sorry, but I just lost my job last week-is there any way that the fee can be waived?' I went to our library director and within days, the fee-however nominal-was eliminated."
There's also the financial impact to the library to consider. When a midsize Illinois library stopped charging a rental fee for entertainment DVDs, "It had the added benefit of greatly increasing circulation. There was speculation that overdue charges from increased circulation would help offset the lost revenue." And an Arizona library sought to cash in on the expertise of staff by charging for computer classes. Enrollment dropped when the fee was instituted, and the library wasn't able to cover costs.
The latter example brings up the issue of whether these projects consume more than they earn. Cooper feels that time and energy of library staff are the truly scarce resources and spending them on "nickel and dime" money-raising efforts is counterproductive. Nancy Currie, director and fiscal officer of Ohio's Madison Public Library, is among the many respondents who reported abolishing programs that became too intensive for staff to manage. In the case of meeting room rentals, Currie says, "It took more staff time to track and collect than was worth it for dollars collected."
No panacea for budgets
Budget issues are not going away any time soon, if ever. Governing bodies, whether they are boards or city councils, expect libraries to hold up their end in finding innovative ways to stretch (or earn) dollars. Patrons want coffee with their library experience. The challenge is in tracking down the elusive mix of fee-based services that deliver more than they take away.
As is the case with so many library issues, while there's no single answer or magic formula, there is an effective way to chart the best path: combine deep understanding of the strengths of the library with equally rich knowledge of the unique environment of the community it serves.
For example, Pat Losinski, director at the Columbus Metropolitan Library (CML), is evaluating the library's particularly lucrative overdue fine payments as a vehicle for encouraging donations. Customers who use an electronic payment option at self-serve kiosks could voluntarily "round up" their fines, with the rounded amount being designated for CML's library foundation.
The concept trades on a number of positives. It's voluntary and, since it occurs at a self-check, private. "Rounding up" is defined by the customer-it can be as painless as a few cents-and acts as a sort of guilt-cleanser for the chronically late. Importantly, because of the library's large fine revenue base, even a nominal boost of, say, ten percent would mean significant income for the foundation.
Losinski and his staff consistently analyze and test what works. That strategy enables smart decision-making when evaluating ideas for income-producing ventures. CML avoids getting caught up in suggestions that create busywork but no meaningful money by stressing return on investment. Understanding of the library and its community helps the library define "payoffs" widely and appropriately, capturing nontangible benefits that impact the library experience. They're able to define costs just as broadly.
Analysis of community needs also feeds the other side of the budget equation: cost-cutting. If income production isn't in the cards for libraries, trimming costs is the most logical backup plan. " 'Right-sizing' our staff, buildings, services will really be what saves us," says Cooper. "And it is so very hard to do in the face of so many folks-staff, many members of the public-who hold on to the old in so many ways." Cooper feels tight budgets have their own beauty in that they enable a sharper focus on what the library can deliver that is truly important to the community. Effective right-sizing means analyzing usage statistics and setting priorities that align with community needs. What doesn't pass muster needs to go. Lean budgets allow libraries the freedom to debate the worth of even the most sacred cows, honing the menu of programs and services to what matters to users and the community at large, rather than to librarians and administrators. The result is a library that is unique to a community and responsive to its needs.
A library uniquely suited to its community can be the beginning of a virtuous circle: the library reflects its understanding of the community; the community gets what it wants from the library and supports it. It may not be the end of the funding dilemma, but it could ensure that public libraries prevail as institutions of and for their communities.
Beth Dempsey (beth@bethdempsey.com) is Principal of Dempsey Communications Group, a firm specializing in strategic communications
