Page 111 - DLIS003_LIBRARY ADMINISTRATION AND MANAGEMENT

Library Administration and Management

Notes 6.2 Sources of Funds

Library finance includes both the funds appropriated to a library and its expenditure. Libraries
depend heavily on a continuous supply of funds for organising their activities, programmes and
services. In dealing with this, ensuring a continuous supply of funds not merely on a yearly
basis but over a period of time, i.e., dime or five years is very important. Finance plays a very
significant role in the organisation and management of any institution, more so in the case of
libraries which have to acquire and build up a collection on a continuous basis throughout the
year and even longer. With the increasing costs of books and journal subscriptions, it would be
impossible to plan a collection development programme, consistent with the needs of users,
without an ensured supply of funds. While appropriations are made for the acquisition of books
and journals, funding bodies quite often overlook or underestimate the necessity of funds for
processing the acquired materials and making them available for use. So, competent persons
should invariably process the expenditure on books. Further, a regular flow of funds ensures the
rhythm and tempo of the user services. These services have to run on a continuing basis. Unless
adequate funds are provided for all these activities, libraries will remain ineffective.
Different types of libraries receive funds from different sources, though some sources are common,
such as government grants. The greatest percentage of operating funds increasingly comes from
public funds raised through taxes. Funds are required on a continuing basis (paternalistic nature
of library) and a judicial estimation of funds required has to be done well in advance. The
sources of funds for libraries can be broadly grouped as follows:
1. Regular grants from parent body (public fund raised through taxes).

2. Ad hoc grants from other departments/institutions (public fund).
3. Grants from endowments and charitable institutions.
4. Fees, subscriptions, sale of service and miscellaneous revenues earned by the library
(ad hoc, non-recurring and meant for specific purposes with restrictions on allocation and
use).
5. Some libraries impose fines on the late return of books as well as for loss or misuse of
books. Income from this source is very meagre. As a matter of fact, it cannot be considered
as a source of income, because the aim of the fine is not to raise revenue but to compel the
user to return the borrowed book in time and not to damage or lose it during his/her
possession. Moreover, libraries may not have the authority to re-appropriate amount
collected as fine or overdue charges for any purpose.
Miscellaneous sources may consist of money received by the sale of library publications
and waste paper, reprographic services, translation and other documentation services
rendered, etc. These services are rendered by libraries usually on a non-profit basis.
Normally, such (limited) funds are added to the general fund of the parent organization
for allocation through normal budgeting.
The financial support given to libraries is of two types: (i) recurring and (ii) non-recurring. The
recurring grants are generally given for the purchase of books and periodicals, maintenance of
regular services, and for anticipated contingent expenditure. The non-recurring grants are given
for specific purposes such as construction of library building, purchase of furniture and equipment
and sometimes for special collections. The third type of grant, known as an ad hoc grant is given
on special recommendations for special purchases.

Task Make a report on the sources of funds of your college library.

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