Monthly private-funding update (2021 total)

The final private-funding numbers are in for 2021–and there is wonderful news.

Another $22,333 was added in December, bringing the final tally to $151,609. This includes $33K received over the year from private grants and donations that were earmarked for capital expenditures, rather than operating expenses (more info below). Adjusting for that, private funding was about $118K, or 10% over the target. To keep reporting simpler, private grants and donations for capital expenditures (versus the operating budget) will be tracked separately going forward and not included in the monthly updates.

Annual-fund contributions of more than $13K made up most of last month’s results. The library also received more than $4K in memorial gifts and general donations, and $2.5K in sponsorships for this April’s ‘Tee Time’ event. Book Nook sales and cash receipts of nearly $1.5K combined rounded out the month.

In a year when the area continues to recover from the impact of the pandemic, we are very grateful for the support of patrons, the Friends of the Library, and local groups and businesses for their contributions to EPL’s operating budget and capital-expense needs.

Peeling back the numbers

What happens when private funding exceeds the goal? First, it’s important to note that it’s not the norm, and speaks to the commitment shown for the library in 2021. Also, the private-funding goal set at the start of each year is a projection of the gap between what the library will receive from public sources (state and local) and the projected operating budget.

The ‘operating budget’ includes things such as payroll, items added to the collection, events, utilities, insurance, etc. Funds from the state and the three municipalities we serve cover nearly 70% of that, and the gap that’s left — $108,034 in 2021, for example — must come from ‘private funding.’

Traditionally, donations and grants have been recorded as ‘private funding’ for bookkeeping purposes, even though not all of those funds go toward the operating budget. In fact, some must go toward ‘capital expenditures,’ as required by grants or donors. Capital expenditures are funds used to acquire, upgrade or maintain physical assets, including the library building, grounds, fixtures, furnishings, equipment and technology.

In 2021, the board approved $79K of capital spending for new carpet in the adult area and lecture room, a STEM workstation, new roofing above the staff workroom, endcaps for the adult area, a bike rack, and a water fountain/dispenser. The board projected using $46K of its capital account reserves (outside of operating budget funds), and received $33K through grants and private donations toward those expenses.

Adjusting the $151K total for $33K in ‘capital expenditure’ grants and donations, private funding toward operating costs was about $118K, or $10K over the goal. The extra funds enable the library to reduce the draw-down from the capital account required to cover the capital expenses.

This year’s funding outlook

Emmaus Borough and Upper Milford Township have committed to a 2% increase in library funding for 2022, and Macungie Borough will keep funding at the same level as last year. Thank you to everyone who reached out to their local council members to enlist their support, as local funding represents the largest component of the library’s budget.

The Commonwealth of PA will keep funding for the library at its current level in 2022. State funding covers approximately 20% of EPL’s budget.

The board met Jan. 18 and approved this year’s budget, so we can now report that the 2022 private-funding target is $114,706. That figure breaks down to an average of $9,500 a month in private funding required throughout the year to close the gap in the operating budget.

You can help the library start off strong by making a tax-deductible donation or lending your support in other ways. Click on the ‘donate’ button below and visit the ‘Support EPL’ page for more ideas.