The study proposes an Alternative Funding Model (AFM) for libraries. To achieve this objective a multi-phase research process was adopted. In the first phase, a literature review was conducted. Based on this data collection instruments were developed. In the second phase, a survey of libraries was conducted and LIS experts were interviewed. Based on the findings of the previous two phases, an Alternative Funding Model (AFM) was developed and validated from LIS experts. The AFM demands an over-hauling of the library system as no fundraising model can succeed in any society unless the image of library is changed to be commensurate with the needs of information society. Based on general systems theory the AFM proposes special inputs, processes and feedback mechanism to get effective outputs. Alternative funding for libraries, according to the Model, revolves around two types of activities: (a) Fee-based services, and (b) Fundraising. Leadership skills of library staff and the use of modern information technology in libraries can play a vital role in the success of the proposed AFM.