Why We Need An Endowment Campaign Now

West Falmouth Library is an independent, private nonprofit responsible for generating approximately 90% of its income. Presently, the Library receives about 10% of its $250,000 annual budget from the Town of Falmouth. The remainder of the operating funds come from grants, the annual fund, fundraising events, and our endowment. Prior to the pandemic, strategic planning had identified the need to increase the annual budget to effectively operate the Library. Specifically, an increased budget is necessary to support staffing, the acquisition of materials, building maintenance, and technology improvements. Economic changes resulting from the pandemic have made this need even greater. To meet the need for an increased budget, we must increase our revenue. The Board of Directors agree that the most fiscally responsible way to do this is by increasing our endowment.

A draw from the Library’s endowment fund has always been used as an income source to balance the budget. Currently, inflation continues to increase expenses while revenue from the endowment fund has decreased due to changes in the market:

• Operating expenses, including staff salaries, are 8% higher than this time last year.
• The endowment fund has also decreased by approximately 8%, which is consistent with performance of the financial markets.

Consequently, our annual draw from the endowment fund now exceeds the prudent draw of 5% or less; continuously exceeding a prudent draw percentage is not sustainable and jeopardizes the future of the Library. As a result, the Library has two possible outcomes: Increase the endowment fund to return the draw to a prudent rate. Or, face the possibility of a future without the West Falmouth Library. We hope you will also appreciate the Library’s financial situation and consider a generous donation to the Funding Our Future Endowment Campaign today. 

An anonymous donor has offered an exceptionally generous matching opportunity for this campaign. Donations and pledges made this year will be matched, dollar for dollar, up to $50,000. Your donation will be doubled to sustain the Library.