Philadelphia has one of the oldest cultural institutions in the U.S. Now it could become a part of Temple.
The Library Company of Philadelphia will keep its location, which is of historical significance, and its name. The intent is to keep collections where they are.
Temple University is in talks regarding a merger or some form of affiliation with the Library Company of Philadelphia, the highly regarded library founded by Benjamin Franklin. The deal, if consummated, could end a long run of independence for the group, which became the first subscription library in the U.S. when it was founded in 1731.
The development comes on the heels of a similar exploration last year between the Library Company and the American Philosophical Society, that ended without an agreement.
Talks between Temple and the library are ongoing, the university said in a statement.
“Temple University has begun discussions with the Library Company about a potential strategic partnership,” the statement said. “The important work of the Library Company aligns closely with Temple Libraries’ Special Collections Research Center and the Charles L. Blockson Afro-American Collection, both in holdings and in a Philadelphia-centered legacy and mission. Both institutions are excited to explore ways to partner that will benefit their constituents and the city of Philadelphia.”
The statement called the Library Company of Philadelphia the oldest cultural institution in the United States.
The group, on Locust Street just east of Broad, focuses on the 17th through 19th centuries, housing more than 500,000 rare books, manuscripts, prints, photographs, works of art, ephemera, and other objects. Among its treasures are items once owned by Benjamin Franklin and William Penn, and the library mounts exhibitions, presents lectures, and maintains a fellowships program that, since 1987, has hosted more than 1,200 scholars.
The possibility of its loss of independence, and changes in the way it operates, has raised concerns about the future of a Philadelphia institution of national significance.
“The Library Company is the repository for some of the most important books and manuscripts in America. The papers of many of the founders of the country are there, and books and publications from before 1800 are there in tremendous quantities,” says Francis W. Hoeber, a Library Company shareholder since 1982. “Its collections in the 20th century expanded to include one of the most important African American history collections, a women’s history collection, and visual culture — which is to say, images that tell a great deal about our country’s history.”
Hoeber fears that a loss of independence could mean staff changes, restraints on how the Library Company fundraises, or loss of certain programs, depending on how the deal would be structured.
With the addition of any affiliating institution, “it would be normal to expect that they would have their own ideas of control over the finances and the programming, and so on.”
These are precisely the issues being ironed out, in addition to whether the arrangement would be an affiliation, merger, or a partnership, according to two individuals with knowledge of the discussions.
“We haven’t really gotten to the finish line,” one said. The sources asked not to be identified because the talks haven’t been completed. “Temple is trying to learn and understand the library company’s personality and culture and really its amazing history, and we’re doing a lot of due diligence. I think the Library Company’s trying to learn a lot about Temple and how Temple works and I think we’re seeing the mission alignments really fall into place nicely.”
Both sides are also talking through what would be their deal breakers and issues such as whether they would fundraise separately or jointly, and whether the library would retain a separate board and its shareholders, the sources said.
Shareholders — dues-paying members, essentially — can attend the annual meeting and vote for board of trustees appointments, and they receive invitations to certain events and are entitled to other benefits. There are various membership levels.
“The shareholder aspect is fascinating,” one of the sources said, “So we’re trying to honor that history … It’s definitely recognized as something that both sides understand is incredibly important to the organization.”
Any agreement would be subject to approval by boards of both Temple and the Library Company. Temple trustees meet next on July 8, but the deal would not be ready for a vote by then, the sources said.
For the Library Company, the partnership would help ease financial pressures — the organization doesn’t currently have a deficit but fundraising to cover some expenses has become more challenging. It recently lost a National Endowment for the Humanities grant and had to rescind three post doctoral fellowships.
A partnership with Temple would also give the institution access to the university’s research assistance, grant writing, facilities and administrative support, and provide for economies of scale through partnering with a much larger organization like Temple. The library’s endowment totaling about $30 million would remain separate and intact, but if they were invested as part of Temple’s larger portfolio, it could reduce the management fee, the sources said.
And for Temple, the deal offers a chance to support a deeply iconic and historic Philadelphia institution and raise its own library operations to a national level.
“This isn’t about taking over a nonprofit,” one of the sources said. “This is about trying to preserve the Library Company’s 300-year history.”
They emphasized that the Library Company would keep its Locust Street location, which is very close to Terra Hall, the former University of the Arts’ main building at 211 S. Broad St. that Temple recently purchased to convert into its Center City campus.
The intent is to keep the Library Company collections where they are, continue with the same kind of exhibits, lectures and programs, and maintain the current staff, the individuals said.
“If anything, the conversation has been, ‘how do we grow?’” one of the sources said. “How do we add to it and bring more people and create greater access for the collections and for the programs?”
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Talks about the potential arrangement began three months ago and were spurred by a conversation that John Fry, who became Temple’s president in November, had with John C. Van Horne, director of the Library Company, the sources said.
Fry had been aware of the library’s previous talks with the American Philosophical Society.
Financial terms are still being discussed, but the deal would be “revenue neutral” to Temple as much as possible, one of the sources said.
“There isn’t like a purchase price here,” they said.
The library, one source said, would maintain its name because of its historical significance. Even if the library company wasn’t facing financial pressure, they said, it likely would have been interested in an arrangement with Temple.
“The combination of our two institutions just opens up so many more possibilities that even if we could remain independent, this would still be a pretty attractive arrangement,” they said.
Rather than a merger or other affiliation, Hoeber would prefer to see the Library Company continue as an independent entity strengthened by a fundraising campaign.
“If Philadelphia’s donor community would step forward and provide sufficient funding to give the library, a very strong base of enduring financial support, that would be ideal. And it would be a tremendous contribution not just to Philadelphia but to the country.”
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Pursuing an affiliation with the Library Company fits the mold for Fry, who has talked about the importance of Temple having a strong presence in Center City, which was one reason the university successfully bid on Terra Hall.
“It’s an opportunity to really position Temple in the heart of Avenue of the Arts,” Fry said at the time, adding that Temple’s visible investment in Center City would be a “great shot in the arm” to the Avenue of the Arts.
In 2011, about one year after Fry became president of Drexel University, the school merged with the Academy of Natural Sciences, which now is known as the Academy of Natural Sciences of Drexel University. The schools touted the agreement as a historic affiliation.
While details of a Temple-Library Company affiliation are yet to be determined, the arrangement might be more of an operational, behind-the-scenes change than anything else.
“It obviously would be a loss if the collection went into private hands or there wasn’t public access. I assume that would be maintained through Temple,” said Michael Norris, executive director of another historic organization, Carpenters’ Hall, and a Library Company shareholder.
“Being fiscally managed or potentially merged — to me that kind of change, if it’s necessary and doesn’t affect mission and keeps them viable, then hooray.”
Or, to use an expression more apt to Benjamin Franklin and his time, huzzah.
What would the Library Company’s founder think about the change?
“The man who started everything? He was so practical and outcome-oriented,” said Norris. ”If it improves people’s lives and improves the city, I don’t think he would be rolling over in his grave.”