Chapter 19 Fundraising

Chapter 19 Fundraising Fundraising activities are governed by School District Policy 2.16, Fundraising Activities Related to Schools, and the DOE Redbook. The general guidelines for fundraising per the DOE and the Board are: All fundraising activities must contribute to the educational and extracurricular experiences of the students. If there is a tragedy within the school community, the school may sponsor a fundraiser or solicit funds to benefit the victim or the victim s family. Fundraising projects shall be kept to a reasonable limit, and each school shall continuously evaluate its fund-raising projects as they relate to educational experiences, time involved for students and staff, and the additional demands made on the school community. Merchandising projects shall be kept to a minimum. Except in the case of fundraising for victims of tragedies within the school, or in the case of a charitable fundraising activity, students shall not be asked to give money without receiving a product or service. Schools are discouraged from using instructional time to plan, promote or execute the fundraising projects unless the project directly relates to a planned curriculum component. The District has one approved crowdfunding site and all schools are strongly encouraged to use this site for fundraising activities. Use of other crowdfunding platforms cannot reference the School District or a District s School Name since those monies raised are not controlled by the School or District until deposited to an Internal Account. All fundraising projects, not through the District approved crowdfunding site, shall be approved in advance by the principal. The teacher/sponsor must complete PBSD 0153, Fundraising Application/Recap, and route it to the principal for approval. Once approved, the bookkeeper will establish an internal account to track the revenues and expenditures relating to the fundraiser. Schools may not charge admission to school events that occur during the normal school day. Schools may not conduct raffles or games of chance which constitute gambling under Florida Statute 894.04. Due to student safety concerns, door-to door solicitations, mechanical rides, and median solicitations are prohibited. School fundraising events that present an elevated risk or involve large numbers of participants require the purchase of additional liability insurance coverage to protect the District from potential claims at these events. In addition, all events (both schoolsponsored and non-school sponsored) that are organized for fundraising should be Internal Accounts Manual (10/17) 1 Chapter 19

evaluated using the Special Event Risk Planning Guide. The Guide is located at the following link: https://www.palmbeachschools.org/riskmgmt/front-page/ If an outside PTO/PTA or Booster organization is conducting a fundraising on school grounds, they must purchase sufficient liability insurance coverage to protect the District from potential claims. These groups should not negatively impact instructional time and shall be approved by the principal and conducted in accordance with District policy. Principals can prohibit any organization from directly soliciting students during school instructional time. However, students may participate as individuals, student clubs, and other extracurricular fundraising outside of school hours with the prior approval of the principal. Participation in fundraising activities shall be on a voluntary basis, and no student shall be compelled to make a purchase or contribution. The proceeds from school fundraising shall be deposited in the school s internal funds and must be disbursed in accordance with district purchasing policies for the purposes stated on the Fundraising Application/Recap. Schools that generate considerable amounts of money are encouraged to adopt schools who do not have the capacity and share resources. COMPLETING FUNDRAISING PAPERWORK Before a fundraiser begins the sponsor must: Complete the top portion of the Fundraising Application/Recap (PBSD 0153) and explain how the proceeds will be used, including the primary account that will benefit from the fundraising proceeds. Estimate the sales, costs, and profits by completing Column A, Estimated Sales Application. Sign and date the application and turn it in to the Treasurer. Written approval from the Principal and Treasurer is required before the fundraiser actually begins. The Treasurer will keep the original application and return a copy to the sponsor once the Principal has approved it and a fundraising account number has been assigned. The Treasurer will establish a decimalized fundraising account to accumulate the income and expenses associated with the fundraising event. At the conclusion of the event the Treasurer will transfer the profits from the decimalized account to the primary account that was named as the beneficiary account on the fundraising application. During a fundraiser the sponsor must: Be responsible for maintaining detailed records of inventories and cash collections. Turn in monies daily by completing a Monies Collected Report (PBSD 0180). The Monies Collected Report must include the account name, fundraising account number, student names, and amount collected from each student. If names are not listed on the form, Internal Accounts Manual (10/17) 2 Chapter 19

classroom receipts must be attached to the Monies Collected Report. There are times when the students are listed on a class envelope for collections (e.g., World s Finest Chocolate Sales). In any event, the documentation must be complete enough to show which students participated in the fundraising event. Materials or supplies MAY NOT be purchased from fundraising collections. All sales must be turned into the Treasurer intact and all items purchased as part of the fundraising activity must be paid by a check from the school s Internal Accounts. If the fundraiser involves the resale of purchased items, the sponsor must: Count the resale items at the beginning and end of the fundraiser and maintain secure control over the inventory. It is a good idea to begin the Sales Item Inventory Report (PBSD 0182) early in the fundraising cycle. Retain copies of all invoices for items purchased to help with the completion of the Sales Item Inventory Report. Under Florida state statutes, taxable items purchased for resale as part of a fundraising activity are subject to sales tax. Fundraising inventory may not be purchased using the District s tax exemption certificate. Under Purchasing Policy 6.14, if items purchased for resale are available from bid-awarded vendors, the school must use that vendor or request permission from the Director of Purchasing to use a different vendor. If items to be resold as part of a fundraiser are not available from bid-awarded vendors and if the cost of those items exceeds $5,000 per year, the school must obtain 3 competitive quotes prior to making the purchase and select the best vendor based on selection criteria developed by the principal in conjunction with the teacher/sponsor. If a fundraiser is a commission-only arrangement and there is no purchase of items for resale, the school may select the best vendor that promotes educational experiences and minimizes the time involved for teachers and students. With commission-only fundraisers, competitive quotes are not required since the school is simply receiving a commission from the fundraising organization. If the fundraiser includes ticket sales, the sponsor must: Obtain tickets from the Document Custodian. Tickets must be prenumbered. Schools may use prenumbered roll tickets or they may have custom tickets printed. Schools may not print their own tickets. A Ticket Sellers Report (PBSD 0157) must be completed to confirm that collections were made for each ticket sold. The sponsor must consolidate the ticket sales and complete the event totals using the Master Ticket Sellers Report (PBSD 0158) The ticket sales shown on the Master Ticket Seller report should agree with the amount shown on the Monies Collected Reports for the fundraising activity. Any unused or voided tickets must be returned to the Document Custodian. Internal Accounts Manual (10/17) 3 Chapter 19

After the fundraiser is over, the sponsor must request a general ledger of the account from the Treasurer and complete the rest of the paperwork: 1. Section B Fundraising Application/Recap (PBSD 0153) Line #1=TOTAL SALES - agrees with Receipts column of the General Ledger for the decimalized fundraising account. Line #2=COST OF SALES the cost of the items resold, including sales tax. Line #3=OTHER COSTS the cost of other items which were purchased as part of the fundraiser (e.g., supplies, prizes, etc.). Line #4=NET PROFIT Calculated by subtracting COST OF SALES and OTHER COSTS from TOTAL SALES. This figure should agree with the General Ledger balance shown for the decimalized account. Line#5=AMOUNT OVER/UNDER ESTIMATED PROFIT this is the variance between the estimated profit and the actual profit. Calculate this figure by following the formula on the Fundraising Application/Recap. Line#6=EXPLANATION OF LINE 5 Explain why actual profits were more or less than the original estimate. Submit the completed Fundraising Application/Recap form to the School Treasurer for review and further processing. 2. Sales Item Inventory Report (PBSD 0182) Sales Item Inventory Reports are required for all fundraisers even if there was no inventory. If no inventory was invoiced, sponsors must complete the top portion of the form. Enter NOT APPLICABLE (N/A) in the Description area of the form, sign and date the document, and obtain the Principal s or Assistant Principal s signature attesting to the number of items listed in Column #5, Items Given Away/Missing, etc. so an administrator can attest to the accuracy of the unsold inventory. Then return the Sales Item Inventory form to the School Treasurer along with the completed Fundraising Application/Recap. If items were purchased for resale and held in inventory, the sponsor must complete the Description portion of the Sales Item Inventory form. Column #1 DESCRIPTION OF INVENTORY SALES ITEM briefly describe the item that was sold. If several items had identical purchase prices and identical selling prices, those similar items may be grouped together on one line under a generic description. Column #2 BEGINNING INVENTORY enter items that were left over from other fundraising events. Column #3 PURCHASES enter the number of items purchased as part of the current fundraising event. It is easier to calculate inventory by the PIECE than to account for partial cases of inventory. Column #4 LESS ITEMS SOLD enter the total number of items sold. Column #5 LESS ITEMS GIVEN AWAY OR MISSING enter the number of items that are unaccounted for or given away at no cost. Internal Accounts Manual (10/17) 4 Chapter 19

Column #6 ENDING INVENTORY Calculated as per the formula shown on the form. This figure should agree with the number of items counted by the sponsor as ending inventory at the conclusion of the fundraising event. Column #7 ITEM SALES PRICE enter the selling price for each item. Column #8 TOTAL ITEM SALES Calculated as Items Sold multiplies by Sales Item Inventory Price (Column #4 x Column #7). The total at the bottom of this column should agree with Line #1/Column B of the Fundraising Application/Recap form and the Credit column of the General Ledger. The sponsor will then sign and date the form and obtain the signature of the Principal or Assistant Principal to attest to the accuracy of any items that were listed in Column 5 of the form. Completed fundraising forms must be submitted to the School Treasurer for review. Once the Treasurer has initialed and dated the Fundraising Application/Recap, the sponsor may issue a written request to transfer funds to the primary account. The sponsor may use those funds for the purposes outlined on the Fundraising Application/Recap by following standard purchasing practices. CROWDFUNDING The Policy includes wording that schools are strongly encouraged to use the District approved crowdfunding site as a crowdfunding method for school fundraising activities. Use of other crowdfunding platforms cannot reference the School District or a District s School Name since those monies raised are not controlled by the School or District until deposited to an Internal Account. The only District approved crowdfunding site is Find It Fund It. The procedures for Find It Fund It are: Register on Finditfunditflorida.com/palmbeach/grants to register for an account Login to your account and follow the easy instructions to complete your grant request. Make your request fun and exciting so donors will want to donate to your project. Submit your request to your principal for approval After approval by your principal and the Education Foundation your project is posted to the Find It Fund It website for donors everywhere to see it Post your project to social media directly from your project page Each time your project is funded the donor will receive a Thank You email automatically As your project receives funding you can post updates on all social media accounts easily Once your project is funded partially or completely, work diligently to start your project Submit an impact report on your Find It Fund It site to show how donors funds are being utilized Include pictures and/or videos of the success of your project on your site throughout the entire process Internal Accounts Manual (10/17) 5 Chapter 19

COOPERATIVE SALES PROGRAM Some secondary schools operate Cooperative Sales Programs on campus during the student lunch periods. This program allows student groups to work collaboratively with the School Lunch Program by selling prepared food to students from a cart or other conveyance during the school s lunch service. This program allows student groups to raise funds for their activities while reducing wait time in the cafeteria lines. The students are responsible for verifying the product inventory before and after the lunch period, maintaining proper food temperature, and depositing the profits. General rules that apply are: Complete a Fundraising Application (PBSD 0153) estimating the revenue to be generated, obtain the principal s approval, and establish a decimalized account in School Cash. Complete a Cooperative Sales Agreement with the Cafeteria Manager. Verify the beginning inventory prior to the sales period. Follow the Cooperative Food Sales guidelines by maintaining proper food temperatures and selling the product during the lunch period. Verify the ending inventory after the food sales period and sign the Cooperative Sales Daily Report, which calculates the student organization s profit for the day. On a daily basis, complete a Monies Collected Form (PBSD 0180) and deposit the profits to the decimalized fundraising account; include the Cooperative Sales Daily Report as additional documentation of the deposit total. Log the deposit on the Drop Safe Log and the bookkeeper will record a deposit to the decimalized account using transaction code Cooperative Sales. COOPERATIVE VENTURES WITH BUSINESS PARTNERS/PTO/PTA/BOOSTERS From time to time, schools may elect to collaborate on a cooperative venture with a business partner or community organization for the mutual benefit of the school and the cooperating organization. For example, a business partner may invite parents, students, and teachers to frequent their place of business and offer to rebate a portion of those sales to the school. Because the school has no control over the business volume and no way to confirm the amount of that rebate, these types of arrangements are considered to be more like a commission than a fundraiser. Since the revenue is generated primarily by students, the proceeds shall be deposited into an appropriate student activity account within the school s internal accounts, and the bookkeeper should use the COMMISSIONS FROM VENDORS AND BUSINESS PARTNERS transaction code when recording the deposit. Internal Accounts Manual (10/17) 6 Chapter 19

If a business partner is coming on campus to conduct a cooperative activity, they must adhere to the insurance provisions outlined in the Policy 2.16, Fundraising Activities Relating to Schools. If the event is of an unusual nature that exposes the District to a potential extraordinary liability or if the event involves a large number of participants or spectators, the business partner or the school must contact the Risk Management Department regarding liability insurance requirements. Current requirements call for $1 million of liability insurance naming the School Board of Palm Beach County as an additional insured. If food will be prepared on campus as part of the cooperative venture, it may not be served during the school day at elementary schools. At secondary schools, food cannot be served within a window that begins one hour prior to breakfast service and extends one hour past the last lunch service in accordance with Policy 6.185, School Food Service Management Policy. Any food served on campus must be prepared in a commercial kitchen and if any food is prepared on campus, the school or the vendor has two options. (1) The food preparer can furnish the school with a copy of their Sanitation Certificate from the Department of Health. (2) The food can be prepared under the supervision of the school s cafeteria, and the school or vendor will be responsible for covering any additional payroll costs incurred as a result. Liability insurance must also be provided in the amount of $1 million, naming the School Board of Palm Beach County as an additional insured. The Risk and Benefits Management Department has a new document on their website to help schools minimize risk factors associated with on-campus events. The Insurance Loss and Prevention Guide for Special Events can be found at the following web address: http://www.palmbeachschools.org/riskmgmt/safety/riskmanagementprograms.asp Internal Accounts Manual (10/17) 7 Chapter 19