Student fundraising is a staple of the secondary school experience, funding everything from robotics trips and athletics to senior proms. The beginning of the school year can bring about numerous requests for fundraising. However, for secondary school administrators, managing these initiatives carries significant compliance, financial, and ethical responsibilities.
Under Neola Policy 5830 (Student Fundraising), board policy establishes a clear framework: Because compulsory attendance laws make students a “captive audience,” student solicitation must be strictly controlled to prevent disruption and protect families.
To keep your school compliant and financially sound, avoid these common administrative pitfalls when managing student fundraising.
- Inadequate Cash Controls and Activity Fund Management
The vast majority of K-12 fraud cases originates from internal staff or volunteers, with principals and book keepers making up a combined 49% of those cases. To prevent issues, you should never have funds just sitting in a desk drawer or hand written tracking sheets. Instead, utilize dual-verified digital logging or daily safe deposits.
- Violating “Smart Snacks” and Nutrition Rules
The Michigan Department of Education (MDE) enforces strict rules regarding food sales during the school day under the USDA’s Smart Snacks in Schools standards. A mistake that schools make is that they sell candy or pizza or some other non-approved food item. Michigan Public Act 42 limits non-compliant food items to two per week per building. Neola Policy 5830 offers an option that allows schools this flexibility. Check your policy to see if your’s allows this.
- Not Obtaining Proper Approval
Student groups, athletic teams, and parent booster groups have the best interest of the school at heart and, at times, can be over exuberant and not follow proper approval steps. Campus fundraisers need principal approval and off-site fundraisers require approval from the Superintendent or Board. To avoid this pitfall, create a digitized central intake form for all fundraisers at the beginning of each semester.
- Overlooking Gaming and Raffle Regulations
50/50 raffles, bingo, or ticket drawings are a very common, and efficient, way to raise a large amount of money quickly. However, games of chance are regulated under Michigan charitable gaming laws. You must have proper licensing and there are age restrictions. To prevent any violations, meet with your athletic boosters and student advisors early to let them know about the guidelines. You will want to reach out to the Michigan Bureau of State Lottery to obtain the required licenses.
Fundraisers are a normal part of a school and can bring a lot of excitement and much needed money. However, there are pitfalls that principals will want to avoid. Neola policies are compliant with both federal and Michigan state law to keep you protected and running as smoothly as possible so you can just focus on the joy of reaching your goals.