Whether you are a district administrator, a school administrator, an educator, or even a community member, chances are you’ve seen an online fundraising campaign from one of your local school classrooms or programs. With the reported rise in school crowdfunding campaigns across the country, it’s clear that this new avenue of fundraising presents a great opportunity to fund additional materials and experiences for K-12 students. However, the plethora of crowdfunding sites and the lack of consistent controls specific to raising money for public school entities have raised several concerns about the potential liabilities associated with this type of fundraising. These concerns have led some districts to put holds or even bans on the crowdfunding efforts of their schools.

With so much opportunity for schools to quickly and easily raise funds, it’s crucial to understand the full picture, including why crowdfunding is so necessary today, how crowdfunding can help schools and students, and what liability issues to look for.

Why Crowdfunding is Necessary

The education funding gap has become increasingly problematic for many K-12 school districts. Traditional fundraising can no longer cover some of the greater costs needed, and with the mass growth in technology, more K-12 members are now turning to crowdfunding sites to request funds. These sites provide valuable opportunities for staff, organizations, and teams to raise funds for additional resources and experiences, directly benefiting schools and students.

How Crowdfunding Helps Schools and Students

Crowdfunding can provide schools with much-needed funds for classroom supplies, extracurricular activities, field trips, and technology upgrades. It allows teachers to enhance the learning environment and offer students more enriching educational experiences. By tapping into the generosity of the community, crowdfunding helps bridge the gap between budget limitations and the actual needs of the classroom.

Liability Issues to Consider

While crowdfunding offers significant benefits, it also brings potential liabilities that schools and districts need to be aware of:

1. 1. Fundraising on Behalf of the School or District Crowdfunding sites often allow anyone within the district to launch fundraising campaigns. This means they can use the name, logo, or images of the school or district without any form of consent, potentially reflecting poorly on the district and causing PR issues.

1. 1. Sharing Student Information Sharing student images or names without consent can lead to FERPA violations, creating significant liabilities for the district.

1. 1. Routing Funds through Personal Accounts Many crowdfunding sites transfer funds directly to the person who posted the campaign, raising legal and financial accountability issues. This often violates district and state policies that affirm the District Treasurer should manage the funds.

1. 1. Ownership of Funds and Products It’s essential to clarify who owns the funds or products produced through the campaign. Without clear policies, there can be confusion about whether these belong to the teacher, the school, or the district.

1. 1. Compliance with Existing Resources Staff may inadvertently raise money for items that already exist or are funded, or for technology that isn’t approved or aligned with the curriculum, leading to wasted resources.

How Destiny Fundraising Manager Helps

These are all problems that school districts can solve with Destiny Fundraising Manager. This platform provides district oversight for every fundraiser while assuring donors that each campaign has been vetted and approved through the district’s built-in, customizable approval process. District administrators can now track every dollar, route funds through a single district account, easily disperse funds to the appropriate accounts, and generate real-time reports.

Key Take-Aways

An online fundraising campaign can significantly impact raising funds and support for your school. By understanding the potential liabilities and using a dedicated platform like Destiny Fundraising Manager, districts can ensure that their crowdfunding efforts are both effective and compliant, maximizing the benefits for their students and community.