GENERAL  

The following general guidelines shall be followed:

1. Fundraising activities shall be authorized by the Board and shall be for the purpose of supplementing funds for established school programs and not for supplementing or supplanting funds which are the responsibility of the local board of education or the State of Tennessee.¹
2. Fundraising companies and other salespersons shall obtain permission in writing from the Director of Schools' or the Director of Schools’ designee in order to visit the schools.
3. Any commission payable by companies shall be paid in the form of reduced prices to the students or paid into the activity fund of the school for use by the school. No school employee shall personally benefit from any fundraising activity.
4. The principal must obtain written approval from the Director of Schools or the Director of Schools’ designee for all fundraising activities, including online fundraising activities, that involve the participation of the general student population in the marketing process of the fundraising effort. All other fundraising activities, including online fundraising activities, must have written approval from the principal and comply with all administrative procedures issued by the Director of Schools. The authorization request shall contain the following information:²
   1. A list of the proposed fundraising activities;
   2. Type of fundraising activity (e.g. in-person, crowdfunding, etc.)
   3. Purpose of the fundraising activity; 
   4. Proposed uses of funds raised; and
   5. Expected student involvement in fundraising activity (school-wide or individual class or club).
5. The Director of Schools or the Director of Schools’ designee shall determine whether or not the activity will benefit the school, contribute to the welfare of the student body, and supplement, not replace, funds necessary to fulfill the Board's required contributions. 
6. Students shall not be excused from a regular class to participate in a fundraising activity. No grade in a subject or course shall be affected by a student's participation, or lack thereof, in a fundraising activity. 
7. No quotas shall be imposed on students involved, and their efforts shall be voluntary. Students who do not participate in fundraising activities shall not be punished or discriminated against in any way. 
8. A fundraiser summary (profit and loss) report is not required when a fundraiser is conducted without a designated purpose and when the profits are used for the general operation of the school or the administrative activities of an individual club or class account.³ A fundraiser summary report must be prepared and filed at the school at the conclusion of any fundraiser conducted with a designated purpose. 

The school principal is responsible and accountable for ensuring that all school fundraising activities are conducted in accordance with both this policy and the Internal School Funds Manual (ISFM).   

This policy shall not be construed as preventing a teacher from using instructional or informational materials even though the materials might include reference to a brand, a product, or a service. 

LOTTERIES  

No fundraising activity shall be conducted which distributes prizes or makes awards to winners from among purchasers of chances by means of tickets through a random selection process, or otherwise constitutes a lottery or gambling pursuant to Tennessee law.⁴

CROWDFUNDING/ONLINE FUNDRAISING  

Individual schools may establish school-wide online fundraising accounts, provided the fundraiser has a beginning and ending date within the same school year, and the fundraiser has been approved by the Director of Schools or the Director of Schools’ designee. The accounts must meet all fundraising requirements established by the Board and the Tennessee Internal School Uniform Accounting Policy Manual. The principal or his/her designee of each school with access to the established fundraising account must ensure all funds are properly accounted for by providing accurate information to be recorded in the school’s accounting records by the school bookkeeper. All funds raised must be deposited directly into the school bank account (the use of personal bank accounts is prohibited). At the conclusion of the fundraiser, a copy of the website’s donation and withdrawal report must be generated from the site, filed by the school bookkeeper in the school’s accounting records, with the reported amount verified by the school bookkeeper against the actual amount of funds deposited. Online fundraising shall not be used on behalf and for the benefit of an outside party.

Employees shall not engage in any fundraising activities in their official capacity as district employees for non-school sponsored fundraisers or for school-related fundraisers that have not been approved by the Director of Schools or the Director of Schools’ designee.  

Note:  School Support Organizations are not limited by this policy or by T.C.A. § 49-2-134 and may continue to fundraise, online and otherwise, pursuant to state law and Board Policy D-250. 

FUNDRAISING FOR NON-EDUCATIONAL PURPOSES⁵  

On approval of the principal, an employee may be authorized to raise and use funds for the following non-educational purposes: 

1. Bereavement support;
2. Award recognition;
3. Employee morale;
4. Banquets; or
5. Other situations at the principal’s discretion. 

These funds shall be derived from sources of revenue approved by the Director of Schools.  

The Director of Schools (or designee) shall develop administrative procedures regarding the receipt, disbursement, accounting, and auditing of these non-educational funds. The Director of Schools (or designee) shall ensure that the procedures are consistent with Board policy and state law and disseminate them to all employees.

Legal References:  

1. Internal School Funds Manual Section 4: Title 8, pg. 4-28. 
2. Internal School Funds Manual Section 4: Title 8, pg. 4-29.
3. Internal School Funds Manual Section 4: Title 8, pg. 4-30.
4. Tenn. Op. Attorney General No. 03-049 (April 22, 2003). 
5. T.C.A. § 49-2-134. 

Approved as to Legal Form 
By Knox County Law Director 3/18/2024 ,
/Gary T. Dupler/Deputy Law Director