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GOFUNDME1 , but…

Can educators solicit money using GOFUNDME? Kinda. School resources cannot be used to fundraise. Crowdfunding is fundraising. So, school resources cannot be used to do it. But there are ways to work with crowdfunding that could help. Lemme explain.

Crowdfunding

GoFundMe, Givebutter, Kickstarter, and Indiegogo are crowdfunding platforms. Crowdfunding is a mechanism to raise money for an individual, organization, or entity by collecting donations through family, friends, interested parties, or really anyone who wants to give. You can advertise the crowdfunding mechanism and then whomever sees the ad can donate as they deem appropriate. GoFundMe is one of the more popular ones used nationwide. It is by no means the only one.

Often and recently, clients have approached us asking whether they can establish a GoFundMe for any number of reasons – e.g. support a booster club; help buy yearbooks for those who cannot afford them; buy supplies for a classroom, etc. The answer is a qualified yes. The key qualifier is “who” is establishing the crowdfunding mechanism and who is operating it.

Boards of education only possess powers expressly delegated by statute or necessarily and reasonably implied therefrom2 . Those laws do not authorize public school districts (common, union free, central, or city) to fundraise. Looking at the enumerated powers of a board of education under Education Law §1709, fundraising for particular aspects of the school function is not included. Further, the budget adopted by the board of education MUST provide for all necessary and contingent expenses of a school district. For example, a school district cannot rely on outside sources to fund textbooks or computers.

Similarly, a school district may accept gifts in the form of real estate, bequest, legacy, or annuity of any kind.3 School boards are not required to accept gifts particularly if they determine the gift is not in the school district’s best interests. Further, schools cannot accept gifts which are contrary to the law or district policy.4 Critically, a school district cannot accept a gift which relinquishes its authority to offer or not offer a particular school program. Gifts with conditions (e.g. accept the gift if you name the building after me) are also prohibited.

This framework colors the approach to crowdfunding. Crowdfunding cannot be used to provide what the school district is required to provide. Crowdfunding cannot be used if there are qualifiers on how the funds are used. Most importantly, school district resources cannot be used to engage in crowdfunding. There is no authority to do this. This does not mean it is not a worthwhile endeavor. It just means the school district lacks legal authority to engage in the activity.

So, if a teacher or administrator seeks to use a crowdfunding mechanism to fund a particular endeavor, school resources cannot be used for this purpose. Employees involved must not use school time or resources for the funding effort. And, when they hold themselves out to engage in the crowdfunding, they must do so as individuals, not members of the school faculty/staff. The entire enterprise must be separate.

Finally, funds gathered through crowdfunding must be distributed in a non-discriminatory manner, free from coercion or favoritism to any particular group. Ultimately, given the restrictions on funding and use of school resources, it is preferred to see any outside fundraising take place using booster clubs, parent groups (e.g. PTA, PTO) and the like. Crowdfunding may prove more effective at raising money than the anachronistic bake sale, but limitations imposed on schools require any such effort to be approached with caution and due deliberation.

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[1] GOFUNDME is a commercial endeavor with which neither this firm nor any of the partners or associates has any affiliation of any kind.
[2] Appeal of Brousseau 39 Ed Dept Rep Decision 14,193, citing Appeal of Bode, 33 Ed Dept Rep 260, Decision No. 13,043
[3] Section 1709 Powers and duties of boards of education (Ed Law 1709(12) (12-a)
[4] Appeal of DeMasi, 18 Ed. Dept. Rep. 320

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