Lucille Kuehn -- Community commentary

The barrage of unfounded allegations and demands made by the Newport

Beach Public Library directed against the Newport Beach Public Library

Foundation leaves me saddened.

The public library is the loser, caught in the cross-fire and deeply

wounded by the divisive charges.

The Newport Beach Public Library has been my particular concern ever

since I became a resident in 1958. I served as City Council member from

1974 to 1978. The main plank of my political platform in the election was

the establishment of better library services.

Since then I have continued to work for excellence in the library as a

member of the library board of trustees for one term and as a member of

the foundation. I am a life member of the Friends of the Library. Most

of my best friends have their names on the Donor Wall. When so many of

them question the structure and function of the foundation, I feel I have

a responsibility to set the record straight.

WHAT IS THE NEWPORT BEACH PUBLIC LIBRARY FOUNDATION?

The original foundation was incorporated in 1989, chaired by Elizabeth

and John Stahr. The City Council at that time wanted a demonstration of

public support through private donations. Over $2 million was raised for

the construction of the building. That foundation was closed when its

mission was accomplished. A second foundation under the leadership of

David Carmichael was incorporated in 1993. There are presently 22

hard-working members on its board.

The foundation is a “nonprivate” (public charity), which means that no

more than one-third of its income comes from interest. Therefore, the

annual fund (income from membership, Donor Wall, annual appeal, naming

opportunities, events) is critical in maintaining the status as a

nonprivate foundation.

The protracted series of unfounded accusations and demands has damaged

the fund-raising ability of the foundation. Consequently, there has been

a dramatic decrease in money raised by the foundation. For example,

despite my own long-founded loyalty, I have not yet contributed the

minimum of $1,000 expected of every foundation board member annually.

That’s a sad public confession to make.

WHAT IS THE MISSION OF THE FOUNDATION?

It is to raise tax-deductible funds beyond those available through city

funding to enable the Newport Beach Public Library to acquire

collections, equipment and enrichments beneficial to the community.

In addition to its fund-raising activities, the Foundation established

the popular Manuscripts Literary Lecture Series, the A.M. and P.M. Book

Discussion groups, and it has also played a major role in the highly

successful Distinguished Lecture Series.

WHAT ARE SOME SPECIFIC EXAMPLES OF FOUNDATION FUND-RAISING? WHAT IS THE

PROOF OF NONPROFIT BENEFIT?

* $450,000 in 1994 bought the entire computer system to meet the customer

service and equipment requirements for the new Central Library.

* $76,000 in 1995 for the literacy program, the Roger Seitz

architectural book collection, other book collections and the young adult

program.

* $102,245 in 1996 for equipment for children’s Local Area Network,

literacy program, CD-ROM products including SearchBank, InfoTrac and

general Business File.

* $133,500 in 1997 for World Wide Web access, which allows the public to

access the library’s computer from a personal computer, Career

Information Center and other CD-ROM products, literacy programs, Sunday

Musicales, Best Books for Kids and Youth Net, which links local junior

and high schools to the library’s catalog, Corona del Mar branch

renovations, children’s library books and products, and library staff

development.

* $252,195 in 1998/99 CD-ROM products, Sunday Musicales, Literacy, Youth

Net, improvements for lobby poster display, the new Popular Library desk,

renovations for young adult library, new materials including books, books

on tape, videos, magazine subscriptions, compact discs.

These added services, equipment and improvements are what make the

difference between just a good library and the fact that for the first

time, in 1999, the Newport Beach Public Library ranked second in the

nation for cities with populations from 56,000 to 99,999.

WHAT IS THE ACTUAL EXPENSE-TO-GIVING RATIO?

An audit by the Certified Public Accountants firm retained by the

foundation states “the IRS begins to question general and administrative

expenses when the figure reaches 25% or higher of total expenditures.”

That of the foundation is 15.4%, which includes costs of programs. There

is one paid employee and many volunteers who accomplish its good works.IS

IT POSSIBLE FOR THE LIBRARY TRUSTEES TO APPROVE FOUNDATION INITIATIVES?

Not only is it impossible, it would be illegal. The city attorney has

thus ruled: No city board or commission may raise money. That is why

there is a foundation.

WHAT IS AN ENDOWMENT FUND?

It is the portion of the foundation’s (or any institution) income in the

form of dividends and interest from invested funds that is derived from

donations given specifically for that purpose. The $1.5 million in the

endowment fund is to ensure a stable source of funds for the library in

good economic times and bad. A portion of the interest from this safe

investment goes to the library annually.

HAS THERE BEEN A “LACK OF COMMUNICATION” BETWEEN THE FOUNDATION AND THE

LIBRARY BOARD?

Absolutely not! In accordance with the foundation bylaws, the city

librarian is an ex-officio member of the foundation board. She or her

representatives attended all meetings except for one executive session.

She receives all minutes, financial reports and committee reports. It is

her responsibility to transmit and translate all information.

* LUCILLE KUEHN is longtime library booster, a former Newport Beach mayor

and councilwoman and library trustee.