This ERIC Digest focuses on library funding, and discusses funding sources, technology funding, and private fundraising and grantmanship. The following information is presented. Library funds are accumulated from a mixture of local, state, federal, and other sources. According to the National Center for Education Statistics (1997), 77.6% of public library income is acquired from local funds, 12.1% from state funds, and 0.9% from federal funds. The remaining funds (over 9%) come from other sources, including user fees, special events, and private fundraising efforts involving foundations, corporations, individual philanthropists, and "Friends of the Library" groups. Although funding woes are not unique to demands for technology, libraries of all types share the need to finance the escalating costs of technology, particularly those associated with the Internet. Recent large-scale technology funding efforts include the federal E-rate program and the private Gates Library Foundation. Sumerford (1995) suggests 12 steps for successfully acquiring funds from private sources: (1) State the need for funding from the community's perspective; (2) Investigate the community's current fundraising climate; (3) Establish a fundraising advisory committee; (4) Develop a comprehensive, community-based strategy based on diverse fundraising methods; (5) Arrange for all money to go into a tax-deductible fund; (6) Frame the request in a project format, matching outcomes with the potential donor's priorities; (7) Research foundations to determine which align with the project's mission; (8) Research the giving patterns of local corporations; (9) Ask individuals for donations and pledges, personally and via mailings; (10) Organize special events and generate press releases; (11) Collaborate with other organizations; (12) Keep in touch with donors, including those who declined the request. The proposal itself should contain a detailed description of the project, including qualifications of the organization requesting funds, a timeline, budget, and information on staffing and program evaluation. Effective relationships and proper motivation are critical to any successful fundraising effort. Fundraising should be approached from a problem-solving standpoint, giving grant makers the opportunity to support meaningful programs with the potential to change peoples' lives. (Contains 12 references.) (AEF)