Sound finances are essential for the success of a library and information service, and the increasing pressure on organizational finances means it is vital that library leaders understand financial management. Financially knowledgeable leaders and managers are in a strong position to make persuasive cases for increased or steady financing, to link their finances with their strategic plan and to educate their stakeholders about the library and information service's finances and their implication (Sannwald, 2018). The following topics are considered in this chapter: demonstrating value for money; managing a budget; bidding and tendering for projects; other sources of income; and crowdfunding.
Demonstrating value for money
In today's challenging environment for many library and information services, it is important to be able to demonstrate value for money, as this will help directors to increase or maintain their library budget. There are many different approaches to demonstrating value and these are often specific to a particular sector, three indicative case studies are presented here.
Case study 11.1 Demonstrating value in Scottish public libraries
Scottish public libraries are able to report that for every £1 of public money invested in libraries, they deliver £8 worth of benefit to the community (Scottish Library and Information Council, 2018). This figure was developed using the Archives, Libraries and Museums Alliance UK (ALMAUK) (2014) economic toolkit, which is based on:• the amount of expenditure by a library, employment provided by the library, indirect expenditure and employment along the supply chain.• the average monetary value of an individual visit to a library.• the average annual monetary saving of visitors to a library through their use of services.
The process involved carrying out a comprehensive survey and using the economic value calculator to work out: indirect impact; employees supported; survey input; survey analysis. The output from the calculation is the average economic value per visit and the average annual saving per visitor.
The Scottish Library and Information Council also highlight the importance of raising the profile of the library service through advocacy, as this can have an impact when tough decisions are being made about the library budget. They provide an advocacy toolkit.