With the ever increasing volume of digital objects, it is imperative for libraries to design strategies for collecting, preserving, and incorporating digital resources into the library's collection. In this paper, we classify digital collections into four categories, according to their relationship with physical resources. We then point out that university libraries should play a more active role in preserving cultural heritage, and map out a strategy for this purpose. A developmental strategy for managing free digital resources is then outlined. We conclude the paper with a discussion of the issues libraries should consider when incorporating digital resources into their collection.