What was once a rite of passage and learning experience for children moving through elementary, middle, and high school has transformed into highly regulated, adult-driven activities for extra-curricular program funding.

I remember the days of selling boxes of candy bars for our school fundraisers and proudly handing in my envelop full of sales each year. I had done my part all while trying to earn the biggest prizes available based on sales. I can remember how it sparked a sense of competition and drive that stayed with me, well, until today.

Fast forward to today’s school fundraising environment, and you find parent committees and meetings, policy handbooks, approval protocols, laws, and rarely a student in sight.  Instead of student government brainstorming ideas to help fund a special class trip or outing, booster clubs, parent associations and others have taken over raising what amounts to some big money for some school districts and clubs. This is accompanied by a variety of laws and accounting requirements.

Here are a few fundraising rules and laws district and school leadership should be aware of and, when appropriate, communicate to broader parent and community audiences via policies, handbooks, etc.:

• Regents Rule 19.6 According to the rule, direct solicitation of charitable donations (goods or funds) from children in public schools on school property during regular school hours is not permitted. There are some exceptions – for example, the sale of tickets to an upcoming school event is permitted, as is signing up students to participate in a fundraiser. Collection boxes for money, food or donations are also permitted. (For details, visit the New York State Education Department Question & Answers on Solicitation of Charitable Donations from New York School Children.)
• Title IX Services, opportunities, and benefits in a school district’s programs must be provided equally regardless of the source of the benefit. This includes donations, fundraising, and organizations that raise funds on behalf of a school district.
• New York State Gaming Commission An organization – like a booster club – may need a permit to hold a raffle depending on the county it resides within and local rules. There are limits on raffle values and content (i.e., no alcohol allowed). Tickets can only be purchased with cash, check, or credit card – no online payment methods can be used. There’s more – a lot more – find details starting on page 562 of the New York Gaming Commission Guidelines.

Remember, RBT CPAs is an accounting firm – we are not attorneys and the information presented herein should not be construed as advice (impressive use of “herein,” right?). You should consult legal counsel for answers to questions, advice, and direction regarding fundraising. That said, we at RBT CPAs are very smart about accounting, tax, and audits. Our firm has been doing it for over 50 years and we’ve earned a reputation for professional, ethical, and dependable service. Should your school district or one of its fundraising bodies need financial advice or support, we are available to help. Just give us a call and we can explore how we can be remarkably better together.