Funding Strategy - grgcnnr/LoT GitHub Wiki

This page sets out the overall approach to funding the Library of Things — a mix of grants, sponsorship, donations, and earned revenue. The goal is a diverse funding base with no single dependency.

Funding Phases

The LoT has three distinct funding needs:

Phase 1 — Feasibility

A small one-off grant to more fully explore and research other LoT that are currently in operation, gather legal advice and set up any legal/financial entities required.

Phase 2 — Establishment

One-off capital funding to get the library off the ground.

This includes:

  • Fit-out of the space (shelving, storage, signage)
  • Initial inventory of items (mix of purchased and donated)
  • IT and booking system setup
  • Legal and incorporation costs
  • Insurance setup
  • Marketing and launch costs

Primary source: Grants (NCC/TDC, community trusts) Secondary source: Item donations from the community and businesses

Phase 3 — Ongoing Operations

Annual operating costs to keep the library running.

This includes:

  • Part-time Librarian salary (the largest ongoing cost)
  • Rent / space costs
  • IT system subscription
  • Insurance (annual)
  • Maintenance and replacement of items
  • Administration

Primary sources: Mix of ongoing grants, business sponsorship, and earned revenue (membership fees / borrowing fees) Goal: Over time, move towards greater self-sufficiency through earned revenue, reducing dependence on grant funding

Example: Hamilton library of things pricing structure

  • $2.50 hire charge for up to two weeks.

  • Deluxe Items are $5 for two weeks.

  • Holds are available. A reserve charge of $1.50 is applied to hold these items.

Overdue charge 50 cents per day or $1 per day for Deluxe Items, aka Best Sellers.

It should be noted that this is part of the Hamilton public libraries and is taxpayer funded.

The Funding Mix

The LoT will not rely on a single source of funding. The target mix is:

Source Phase 1 Phase 2
Council grants (NCC/TDC) Primary Supplementary
Community trusts Primary Ongoing
Business sponsorship Secondary Ongoing
Item donations Primary Ongoing
Membership / borrowing fees — Growing
In-kind support (space, services) Primary Ongoing

Sequencing

The recommended funding sequence is:

  1. Feasibility / planning grant (now) — A small grant (e.g. NCC Community Investment Fund small grant) to cover the cost of validating the concept, forming the steering group, and completing a feasibility study. Low barrier to entry; demonstrates momentum to larger funders.

  2. Letters of support (early) — Seek letters of support from NCC, partner organisations, and community groups. These strengthen subsequent grant applications significantly.

  3. Establishment grant (once steering group formed) — Apply for larger grants to fund the fit-out, initial inventory, and first year of Librarian salary once the legal structure is in place and the concept is validated.

  4. Ongoing funding strategy (Year 1+) — Develop a sustainable mix of earned revenue, ongoing grants, and sponsorship.

What Funders Need to See

Before making significant funding decisions, most funders will want to see:

  • A clear description of the project and its community benefit
  • Evidence that the model works (case studies)
  • A credible leadership team (steering group / board)
  • A realistic budget
  • A legal entity with appropriate governance
  • A sustainability plan (not just grant-dependent forever)

This wiki is being built to provide exactly this evidence base.