KAC - School Fundraising Activities

1. PURPOSE AND PHILOSOPHY

The Board of Education recognizes that students and families may benefit from school-sponsored fundraisers to help offset student costs for fees and travel. Fundraisers may also raise money for schools or for charitable purposes. 

The Board also recognizes that fundraisers may carry certain burdens. Issues such as excessive solicitation of businesses and patrons, student safety, undue distractions, time commitments, and financial ethics can arise while fundraising activities are undertaken. The Board requires that great care and restraint be exercised by school level personnel in planning and implementing fundraising activities. 

Utah law requires the adoption of a fundraising policy. This policy establishes general procedures, creates an approval process, provides for compliance with school fee and fee waiver requirements, identifies which employees are authorized to approve fundraising activities, establishes internal controls, provides direction on use of the district’s tax-exempt status number, provides procedures for interaction with parents and donors, sets forth disclosure requirements, and establishes procedures governing student participation such as allowable types of fundraisers and restrictions on incentives. 

2. FUNDRAISERS

A fundraiser is an activity or event provided, sponsored, or supported by a school that uses students to solicit funds.

A fundraiser may be used only to: 

offset the costs of individual student fees (individual fundraiser); 

provide supplemental financial support to a school; (schoolwide fundraiser) or

benefit a particular charity or for other charitable purposes (charitable fundraiser). 

A fundraiser may include:

the sale of goods or services; 

the solicitation of monetary contributions from individuals or businesses; or 

other lawful means or methods that use students to generate funds. 

A fundraiser does not include alternative revenue streams, as described in section 3. 

A fundraiser may include crowdfunding, which is the practice of funding a project or venture by soliciting donations from a large number of people, typically via the internet. Crowdfunding does not include the sale of a product or service. 

An individual fundraiser is a fundraiser in which funds are raised by each student to offset that individual student’s fees or to assist with that student’s travel expenses. 

3. ALTERNATIVE REVENUE STREAMS

In addition to the fundraising activities described in this policy, schools may permit certain alternative methods of raising revenue consistent with applicable District policies. If these alternative revenue streams do not use students, they are not considered fundraisers and are therefore not subject to the restrictions on fundraisers found in this policy. However, restrictions may be imposed by other District policies. Funds generated through an alternative revenue stream must be deposited into a school account and may be used at the discretion of the school administration. The following are examples of alternative revenue streams. 

Donations. A school may receive a donation that was not solicited by students and for which the donor receives no goods or services in return. Such receipt is not considered a fundraiser but is subject to the provisions of Nebo School District Policy KABA, Donations. However, if students are used to solicit donations, the activity is a fundraiser subject to this Policy KAC. 

Unobtrusive programs that don’t place pressure on students or parents to participate but that result in the school receiving goods or funds may be considered an alternative revenue stream rather than a fundraiser even though they may permit students to make donations. Such programs may include, but are not limited to, Box Tops for Education, a container into which students may drop donated goods, or other similar arrangements that are passive in nature and do not advertise a for-profit business or entity. Principals must ensure that such arrangements do not undermine or detract from the school’s obligation to educate students.

Advertising. Consistent with Nebo School District Policy KACA, School Advertising Restrictions, schools may receive revenue through the sale of advertising. If students are not used to solicit or conduct the advertising, it is considered an alternative revenue stream rather than a fundraiser and is not subject to the restrictions specific to fundraisers found in this Policy KAC. However, if students are used to solicit or conduct the advertising, the activity is a fundraiser subject to the restrictions of this Policy KAC, including, but not limited to, the limitation on number of fundraisers found in section 5 and the approval and disclosure requirements found in section 4. No advertising may be conducted except as specifically permitted by Policy KACA.

Gate Receipts. Schools may earn revenue by selling admissions to school-sponsored events such as dances, athletic events, fine arts performances, camps, clinics, and homecoming activities. To qualify as an alternative revenue stream, the funds must be solicited by adults rather than students. Students may participate as contestants or performers in the event consistent with the purpose of the class or extracurricular activity in which they are enrolled, but if students are used to solicit the funds or perform other activities (such as advertising, selling, or performing work such as a carwash), the activity becomes a fundraiser rather than an alternative revenue stream. Funds received through the sale of gate receipts, when not conducted as a fundraiser, are deposited in a school account and may be used at the discretion of the principal. 

On-Site Concessions. Schools may earn revenue by selling concessions at school-sponsored activities such as athletic events and fine arts performances. To qualify as an alternative revenue stream, concessions must be sold by adults rather than students. If students run a concession stand, the activity constitutes a fundraiser subject to all fundraiser requirements. 

School-Business Partnerships. “Adopt a School” or other school-business partnerships which result in the school receiving funds, services, or materials may be allowed and are encouraged. Partnerships must be formed in accordance with Nebo School District Policy KACA, School Advertising Restrictions.

Nebo Education Foundation. Certain alternative revenue streams may be coordinated with the Nebo Education Foundation with authorization by both the school principal and the executive director of the Nebo Education Foundation. In such event, the donations by individuals, businesses, and entities may be characterized as a charitable donation and possibly be tax deductible. In order for donations to be characterized as a charitable donation for tax purposes, the donor must not receive any goods, services, or other consideration in return for the donation.

4. APPROVAL PROCESS 

All fundraisers must have prior approval through the district’s contracted online fundraiser management platform by the school principal or designated assistant principal and, where necessary, other applicable district administrators. The principal has absolute discretion to withhold approval of any fundraiser. The principal’s decision may not be appealed. The following must be reviewed by the coach, advisor, or teacher requesting the fundraiser (the “fundraiser owner”):

The purposes of the fundraiser.

How the money will be collected, accounted for, and spent, including finance and auditing procedures.

Guidelines and directions that will be given to students regarding their participation.

Potential risks, including student safety, transportation issues, and appropriate supervision. 

Measures taken to mitigate potential risks. 

Possible issues related to federal or state law, contracts, or District policies, which include, but are not limited to:

Utah State Risk Management Insurance

Title IX of the Education Amendments of 1972

Utah Code Ann. §§ 53G-7-501, et seq.

Policy KA, School Facility Use

Policy KAB, PTAs, PTOs, Booster Clubs, and Other Parent Support Groups

Policy KABA, Donations

Policy KACA, School Advertising Restrictions

Policy KAD, Summer / Out-of-Season Activities

Policy KAA, Community Education

Policy JN, Student Fees

Policy IICA, Student Educational Travel

Policy DJA, Accounting Procedures

Policy DJB, Purchasing 

Policy DLC, Personnel Travel

Administrative Directive 3.3, Nonwaivable Charges

Administrative Directive 5.1, Private, but Public Education Related Activities

Procedures Governing Interaction with Parents, Donors, and Other Organizations

Before a schoolwide or charitable fundraiser may commence, the principal shall ensure that a parent disclosure on a form approved by the district is provided or made available to the parents of all students in the school. This requirement may be satisfied by posting the completed form online and providing parents with a link to it. No fundraising materials, including fliers or commercially produced literature, may be sent home with students or given to parents unless and until the disclosure form has also been made available. The form must identify the specific financial needs to be satisfied by the fundraiser. The form must also describe the fundraiser, including any involvement of students, staff, or third parties. The form must describe how the money will be collected and accounted for. 

Before an individual fundraiser may commence, the fundraiser owner must submit the request through the district’s online platform. Once it has been approved by all applicable administrators, the fundraiser owner must ensure that parent disclosure on a form approved by the district is provided to all parents/guardians of students to be involved. This requirement may be satisfied by posting the completed form online and providing parents with a link to it. The form must identify the specific financial needs to be satisfied by the fundraiser. The form must also describe the fundraiser, including any involvement of students, staff, or third parties. The form must describe how the money will be collected and accounted for.

All interaction between employees, students, parents, donors, and other organizations during the fundraising activity must be in compliance with District policies and procedures, especially but not limited to Nebo School District Policy KAB, PTAs, PTOs, Booster Clubs, and Other Parent Support Groups and Nebo School District Policy DJA, Accounting Procedures. 

Disclosure of Financial Interest

If the coach, advisor, or other District employee who manages or oversees a fundraising activity also has a financial or controlling interest in or access to the bank account(s) of the fundraising organization or company, the employee must disclose such interest or access on the Approval Request and Disclosure before the activity will be approved.

If the administrator who approves a fundraiser also has a financial or controlling interest in or access to the bank account(s) of the fundraising organization or company, the administrator must disclose such interest or access on the form described in subsection 4.2. A copy of this form must then be provided to the administrator’s immediate supervisor. 

Other than their normal hourly wage or stipend, no District employee may receive compensation in the form of profits, percentage of revenues, kickbacks, products, gifts, or anything of financial value as a result of a fundraiser. 

5. NUMBER AND FREQUENCY

Except as approved under paragraph 5.2, the number and frequency of fundraisers is limited to the following. 

Each school may hold one school-wide charitable fundraiser per school year (Walk-a-Thon, Quarters for Christmas, Penny Wars, etc.). 

Each school may hold only one noncharitable schoolwide fundraiser per year. 

Each program may offer up to three individual fundraisers between June 1 and May 31. 

Additional Fundraisers beyond one charitable fundraiser, one schoolwide fundraiser and three individual fundraisers require approval from the applicable director.

6. PERMITTED FUNDRAISING ACTIVITIES

Student solicitation of money, goods, and/or services from local businesses or individuals is a fundraiser and is subject to the requirements of this policy, including school administrative approval. School administrators are encouraged to be sensitive to the number of school fundraising activities which solicit directly from local businesses or individuals and must strictly enforce the prohibition against multiple fundraisers. School administrators shall document and impose limits upon the number and type of school fundraising activities that are permitted to approach local businesses and individuals for contributions. 

Projects where school organizations buy or otherwise receive raw materials, use students to turn the raw materials into a finished product under the supervision of school personnel, and sell them to the public may be allowed. When food is prepared, a food handler’s permit will be required. The selling of baked goods, or other food items intended for human consumption, which have been prepared at home by students or parents/guardians is not allowed.

Crowdfunding activities that use students are fundraisers and are subject to all the requirements set forth in this policy applicable to fundraisers. If a crowdfunding activity uses a third-party vendor, the vendor is subject to all requirements found in section 7. 

Students may solicit sales, pledges, or contributions from persons known to the student or known to their parents/guardians (i.e., friends, neighbors, relatives, co-workers, business associates, etc.). However, students may not engage in such solicitation from persons not known to the student/parent/guardian. Door-to-door sales to individuals not known to the student or parent are prohibited. 

7. INVOLVEMENT OF THIRD-PARTY VENDORS

Subject to the provisions herein and Nebo School District Policy DJC, Contracting Procedures and Authority, schools may enter into contractual agreements with vendors or other third parties to conduct fundraisers. 

School Visitation Pass Required 

Vendors and other third parties must be approved by the Operations Department and issued a School Visitation Pass, as described in Nebo School District Policy KACA, School Advertising Restrictions, before contacting a school or employee to solicit involvement in a fundraiser. 

Employees contacted by a vendor who does not have a current School Visitation Pass may not enter into any contract with the vendor or otherwise use the vendor’s products or services but shall instead refer the vendor to the Operations Department. 

The Operations Department will assure that the vendor is aware of the provisions of this policy and any other applicable District policies and procedures, and that the vendor has satisfied all licensing and registration requirements in accordance with Utah law. 

Issuance of a School Visitation Pass does not indicate District sponsorship of the vendor, its products, or its services, nor does it indicate that the vendor’s proposal complies with District policies. School administrators must evaluate a vendor’s involvement in a fundraiser and assure compliance before approving the fundraiser.

Any vendor who purports to be District-sponsored, who intentionally violates District policy, or who provides false or misleading information about another vendor will have its School Visitation Pass revoked for the remainder of the school year. 

Contracts with fundraising vendors must be signed by the school administrator. 

When a fundraiser is conducted under a contract with a third party, only those funds received by the school are public funds. 

8. RECEIPT AND USE OF FUNDRAISING PROCEEDS

Proceeds from fundraisers must be received in compliance with Nebo School District Policy DJA, Accounting Procedures. 

Except as provided in this subsection, proceeds from a charitable fundraiser must be given to a charitable organization rather than to an individual or family. 

In exceptional circumstances the Director of Elementary Education or Director of Secondary Education may approve the giving of proceeds from a charitable fundraiser to an individual or family. The applicable director, in consultation with other administrators, may determine whether exceptional circumstances exist. 

If the director approves the giving of proceeds directly to a family or individual, the principal should advise the recipient to consult with the recipient’s tax advisor or legal counsel regarding possible tax or other legal ramifications for receiving the proceeds.

The District, including any of its schools, maintains full discretion on whether to accept any proceeds from fundraising activities. Consistent with Nebo School District Policy KABA, Donations, the District may provide a charitable donation receipt for fundraising proceeds if the donor received no goods or services in exchange for the proceeds. 

The proceeds of any fundraiser may be used only consistent with this section and only for the purpose identified in the approval process and disclosed as described in subsection 4.2.

Proceeds of fundraisers may not be used to hire additional personnel or to cover or augment the salary or stipend of existing personnel.

Surplus or unused funds from a fundraiser may be used only as follows. 

Surplus funds from an individual fundraiser revert to the school and will be used to offset that individual student’s fees or travel expenses for other programs or activities until the student is no longer enrolled in a District school. If the surplus funds exceed the student’s fees and travel expenses for other programs, and the student will not be incurring future fees or travel expenses, the funds will be used to offset fees and travel expenses of other students. In no case will surplus funds be paid directly to students or parents. 

The costs associated with each school program are divided into three categories: (a) facilities expenses, (b) basic program expenses, and (c) travel expenses. 

Facilities Expenses

Facilities expenses include the purchase, construction, renovation, improvement, and maintenance of any facility or long-term equipment used by school or District programs.

Facilities include, but are not limited to, fields, stadiums, bleachers, score boards, marquees, gymnasiums, tennis courts, auditoriums, training facilities, etc. 

Long-term equipment is equipment that is typically used for more than one year and includes but is not limited to items such as blocking sleds (football), wrestling mats, pitching machines, batting cages, basketball hoops, etc. 

Fundraising proceeds are not generally allowed for facilities expenses. No fundraiser may be held for purposes of covering or supplementing facilities expenses unless specific prior written approval on a district form is granted by the Superintendent, the Director of Operations, and the applicable Secondary or Elementary Director. 

Basic Program Expenses

Basic program expenses are the expenses required to run a particular school program as determined by the Department of Secondary Education or the Department of Elementary Education. Basic program expenses include but are not limited to the following: consumable supplies; officials/referees; uniforms; equipment; and transportation and admission to in-season games, tournaments, and performances.

Basic program expenses are covered by a combination of District funds and student fees as defined and listed in Nebo School District Policy JN, Student Fees. Individual fundraisers may be held to assist students paying their student fees, but fundraisers are not otherwise held to cover basic program expenses. 

Travel Expenses

Travel expenses include all costs associated with overnight travel as defined in Nebo School District Policy IICA, Student Educational Travel, including but not limited to transportation, housing, meals, registration fees, entrance/admissions fees, and other costs as disclosed to and approved by parents as required by Policy IICA. 

Proceeds of individual fundraisers may be used to cover or supplement student travel expenses. Proceeds may not be used to increase the cost of student travel above the cap set in Policy JN, Student Fees.

9. GENERAL RULES AND RESTRICTIONS

The following specific rules govern all fundraisers. The Board authorizes the Superintendent’s staff to develop Administrative Directives, practices, and procedures to clarify these rules and restrictions as questions arise. 

Consistent with Nebo School District Policy DJA, Accounting Procedures, fundraising revenues should be accounted for at an individual contribution level or participation level. Participation logs should be retained. 

A District tax exempt status number may be used only in accordance with Utah State Tax Commission guidelines and applicable Nebo School District policies, including but not limited to Nebo School District Policy DJA, Accounting Procedures and Nebo School District Policy DJB, Purchasing. 

A receipt for donations shall be issued in accordance with Nebo School District Policy KABA, Donations. 

No rewards may be offered to individual students. No rewards or prizes may be offered to groups or classes unless specifically approved by the school principal and by the applicable Elementary or Secondary Director. No rewards, prizes, commissions, kickbacks, or other direct or indirect compensation may be received by any District employee or volunteer. 

Student grades or citizenship standing shall not be affected by a student’s ability or willingness to participate in any fundraiser.

Sales quotas for students may not be a part of any fundraiser, and students may not be required to pay for any unsold items which are returned to the school.

Students may not participate in a fundraiser for a team or organization to which they do not belong. For example, a sport for which students must try out may not hold a fundraiser that uses students trying out for the team but who have not yet been selected for the team. Only those students who make the team may participate in the fundraiser.

Students shall not be required to participate in a fundraiser as a condition for belonging to a team or group; nor shall a student’s participation or lack thereof affect his/her play time or standing on said team or group. Students must be given the opportunity to directly pay the costs that are assessed to them. Students may not be assessed fees in excess of the Board approved Fee Schedule.

An individual student or group of students may not use the facilities or resources of the school to conduct a personal fundraising effort not sponsored by the school except on a rental basis as outlined in Nebo School District Policy KA, School Facility Use.

Raffles are illegal in Utah and are, therefore, prohibited as a fundraising activity. A raffle is defined as an activity in which people purchase an opportunity to win something which is ultimately determined by chance.

Information related to a student’s fundraising efforts, including amounts raised, items sold, or people contacted, must be kept confidential and not shared with other students.