Not every library has a specific department or area to handle its gifts and exchanges. This function is a vital part of every library program. This presentation is designed to increase awareness of the valuable contribution that the gifts and exchange function makes to the overall library program. Some of the contributions of the gifts and exchange program include: (1) materials received from individuals and agencies that enhance the library's collection development program; (2) exchanges received from members of various exchange organizations which replace missing periodical issues and monographs; and (3) university publications received from fellow institutions. Methods of increasing awareness include: (1) recognizing all gifts received with letters of appreciation; (2) posting announcements and articles pertaining to gifts and exchange in library/university newsletters; and (3) specifically recognizing exceptional gifts in monthly and annual reports to inform university and library administrators of these contributions. Two unusual sources of materials are noted: memorial gifts, and gifts of periodical subscriptions. Eight suggested readings are listed. (Author/BBM)