This report considers the issues of gifts, donations, collection development, long-range planning, and budget constraints which arose as a consequence of a collection development study undertaken for a public library system serving a population in excess of 200,000. Gifts to the general collection are distinguished from gifts to special collections; special collections are defined; criteria for donations of earmarked funds or special collections of materials are enumerated; situations in which gifts would serve a public relations function are considered; and means of determining areas of need that should be addressed by special collections are discussed. A Special Collection Proposal Form containing guidelines for evaluating a proposed special collection is appended. (KM)