Crowdfunding Guide for School Districts: A Step-by-Step Approach 

As school communities increasingly turn to crowdfunding to raise money for classrooms and programs, what should be celebrated as a victory has raised concerns for school district administrators. The popularity of online fundraising in K-12 schools has grown exponentially over the last decade due to its ease of use and the ability to share fundraisers quickly. However, this growth has also revealed unintended consequences, prompting school districts to seek systematic approaches to support online fundraising safely and effectively. 

Understanding Crowdfunding in K-12 Schools 

Crowdfunding in K-12 education involves someone from a classroom, team, school program, parent organization, or other school-associated group creating an online-based fundraiser. To gain donations, the creator promotes the fundraiser by sharing it with family, friends, community members, and others online. Once funded, the donation is sent to the creator as funds or items. General crowdfunding sites like GoFundMe and Fundly are made for various causes, while sites like AdoptAClassroom and DonorsChoose are specifically for teachers. School districts face the challenge of finding an education-specific platform that fits the needs of their teachers, teams, clubs, and programs. 

Recognizing the Risks 

Legal, financial, and reputational issues can pose risks for those involved with online fundraisers, leading districts to establish protective policies and procedures. The process of crowdfunding in school districts is often described as “decentralized,” which can create potential risks for the district, organizer, and donor. For a better understanding of these issues, it’s helpful to watch experts discuss the current crowdfunding situation and its implications for school districts. 

Assessing the Current Situation 

Understanding what’s happening in your school district is the first step in addressing crowdfunding issues. Conducting a census or survey of schools can reveal which platforms are being used, the frequency of their use, and the amount of money or inventory collected. Researching active and completed crowdfunding campaigns by searching the names of your district or schools on popular sites like DonorsChoose, GoFundMe, and AdoptAClassroom can also provide insights. 

Reviewing Guidance and Implementing Policies 

Guidance on crowdfunding has been issued by various organizations, including state and local school boards, education law firms, and state auditors. This guidance suggests implementing policies and procedures to mitigate risks. Common recommendations include requiring prior administrative approval of fundraising campaigns, identifying approved crowdfunding sites, ensuring donations are routed through district or school accounts, and establishing that all donations are the property of the district. 

Utilizing Resources for Decision Making 

Making district-wide decisions about crowdfunding involves collaboration among the Superintendent, district cabinet members, finance office, and school board. Consulting your state school boards association and state auditor can help ensure compliance with regulations. Using school districts that have successfully implemented crowdfunding controls as a reference can also be beneficial. For example, Chandler Unified School District has set an example with its successful crowdfunding procedures. 

Establishing New Policies and Procedures 

After understanding the risks and available guidance, it’s time to solidify plans through guidelines, procedures, and policies. Some districts may need to make minimal changes to their board policy, focusing instead on updating procedures and guidelines. Others may choose to rewrite policy sections or add specific guidelines on crowdfunding. 

Rolling Out Changes 

Communicate the new policies and procedures across the district to ensure everyone is aware of the updated crowdfunding process. This can be done through press releases, social media announcements, emails, newsletters, and staff letters. Providing professional development and training on the new procedures can help fundraisers get approved and launched smoothly. 

Monitoring social media and crowdfunding websites periodically can ensure compliance with the new rules. If someone launches a campaign without approval or on an unapproved site, a gentle reminder may be necessary. 

Conclusion 

To make crowdfunding work in your district: 

1. Understand Crowdfunding: Know that it involves launching a fundraiser online, sharing it with the community, and raising money for a school idea. 

2. Recognize Risks: Be aware of potential legal, financial, and reputational risks without proper oversight. 

3. Assess the Situation: Conduct a census or survey to understand crowdfunding activities in your district. 

4. Review Guidance: Implement policies and procedures based on published guidance. 

5. Utilize Resources: Consult state associations, auditors, and successful districts for advice. 

6. Establish Policies: Write new policies, procedures, and guidelines. 

7. Communicate Changes: Roll out new policies and provide training to ensure compliance. 

Destiny Fundraising Manager helps school districts implement a central platform to pre-approve, track, and report every fundraiser, assisting districts through the early steps. For additional crowdfunding resources, visit the Destiny Fundraising Manager resources page. 

https://follettsoftware.com/finance-suite/destiny-fundraising-manager/For more information about using Destiny Fundraising Manager to manage online fundraising in your district, visit the webpage or request more information.