School fundraising

School fundraising or school fund raising is the practice of raising money to support educational enrichment programs by schools or school groups (e.g., parent-teacher organizations, booster clubs, etc.). One of the most prevalent practices in the United States is product fundraising. Schools and other non-profits raise $1.7 billion each year by selling popular consumer items.^[1] Eight out of 10 Americans support these types of programs.^[2] In addition, schools and school groups such as their Parent Teacher Organization and Parent Teacher Association find many creative ways to raise funds—from bake sales, dinner events, auctions and school carnivals to more aggressive advertising, affinity programs, grant writing and straight forward donation requests.

Product Fundraisers

Product fundraising has its origins in the early 20th century. The practice typically involves the purchase and re-sale of popular consumer products by a non-profit group whereupon the group sponsoring the sale keeps a portion of the gross sales. Products can be purchased in bulk and paid for in advance by the organization, then re-sold to supporters. Products may also be ordered using a catalog, order forms and other methods. Supporters pay for the product when the order is placed or upon final delivery.

There are three types of product fundraisers that schools use to generate revenue. (1) Pre-sales Fundraising, (2) Product In-Hand Fundraising, (3) Online Fundraising, with online fundraising rising in popularity over the course of the past decade.^[3]

As of 2010, there are over a thousand fundraising companies in the United States offering their products and services to schools and their associated nonprofit parent teacher groups.^[4] In the past year, many changes have occurred in the school fundraising industry. A few online fundraising companies are now using social media web apps, such as Facebook and Twitter, to make online fundraising easier for schools and the parents and students who promote them.^[5] Additionally, Fundraising Software is also now available allowing a school to have their own product fundraiser website (with their own domain name), that is then populated with products from a distributor, who manages the fundraiser externally and deals directly with shipping and customer relations.^[6]

Do It Yourself (DIY) School Fundraisers

Other school fundraisers that generate substantial revenue for schools include auctions and raffles. With these types of fundraising activities, the school requests donations from local restaurants and businesses in their area, that are then offered at the event. In the case of an auction, people are allowed to bid on the dinner, limousine ride, or whatever was donated by the local businesses in the community. In the case of a raffle, people purchase raffle tickets that are then later picked randomly from a container. Often the donations are solicited by parents acting on behalf of the school, who make phone calls, write letters, or know of other parents who work for companies who may be willing to donate. ^[7]

Economic Pressures

Some parents and schools are now having to resort to extensive fundraising, including in one case having to raise $300,000 in six months to close budget gaps in order to keep Cordova Lane Elementary School (Sacramento, California) open.^[8]

Additionally, general economic hardships can cause school fundraisers to earn less, as volunteer time is spread thin with more families requiring dual incomes. A survey done by national fundraising association in 2007 determined that on average the most labor intensive school wide fundraisers, in terms of the number of volunteers needed is school carnivals, with an average of 59 volunteers needed. Other labor intensive fundraisers included: auctions (28), "thons" such as walk-a-thons (22), breakfasts or dinners (17) and raffles (17). By contrast the least labor intensive fundraisers for schools included: product fundraisers (7), direct donations (7), restaurant nights (6) and student portraits (2).^[9] Another survey from the same source showed 71% of parents are "concerned and overwhelmed" with having to do more fundraisers.^[10]

History

Door-to-door fundraising and in hand product fundraising sales (out side local stores) has been a regular part of societal activities since the early 1970s. However, door-to-door sales came under scrutiny in 1997 following the murder of an 11-year old New Jersey boy who was killed while fundraising unsupervised in his neighborhood.^[11] Today, most product sales are made to parents, family members, co-workers, friends and close neighbors. The fundraising industry strongly discourages unsupervised door-to-door sales.^[12]

References