On Monday, the DeKalb Board of Education discussed the administration’s proposal for a Fundraising Policy.
School communities often have fundraising activities to provide extra materials and opportunities for their students. Most schools in DeKalb have parent led organizations like a PTA, PTO, Foundation, or a combination of these organizations that raise funds and supplement their school’s educational programs.
It is a good idea to understand the tax status of the organizations that operate within your school. There are different federal and state rules and regulations for different types of entities. For example, is your PTO and/or Foundation a 501(c)(3) under the tax code? Does your school raise funds without the structure of a separate legal entity?
The Policy that was presented to the Board this past Monday was geared towards those school communities that are fundraising without an organization that has the legal and regulatory structure of a 501(c)(3) or something similar. The administration is concerned about these fundraising activities and associated liability for the district.
Unfortunately, this policy lacked clarity as it appeared to lump all fundraising organizations together. There was a lengthy discussion at the board meeting. I made it perfectly clear that many provisions in this policy are simply not applicable or enforceable for the 501(c)3 organizations that operate at many schools. The Board asked for a rewrite to clearly delineate how this policy is applied to various organization types. I expect the revised policy will be rewritten and will not come to the board before July.
Proposed Fundraising Policy – Regulation KEB-R(1)