regulation 1370 - fundraising...(e.g. social media, internet, etc.) • consistency in the...

Regulation 1370 - Fundraising

O V E R V I E W O F P R O P O S E D R E V I S I O N S

Presented by: Shakeel Yusuf, ComptrollerDepartment of Financial Services

Why the Change?

• Significant changes in the fundraising environment (e.g. social media, internet, etc.)

• Consistency in the application of the regulation district-wide

• Increased demand for transparency• Fundraising audit revealed areas for

improvement • Ownership of regulation transferred to

Department of Financial Services

Key Objectives

• Provide consistent guidance to school administrators and staff on fundraisers and similar activities

• Clarify the scope of fundraisers for schools

• Distinguish between fundraising activities controlled and managed by the school vs. school support organizations

• Recognize importance of school support organizations

Drafting Process • Feedback from principals

– Focus groups– Principal’s Meetings

• School based finance staff– Survey– Finance officer association and advisory groups

• Departments– Student Activities– Community Use – Communication and Community Relations

• Leadership Team• Support Organizations

– Lots of hours by Tiffany Wood !!!!

KEY REQUIREMENTS

REGULATION 1370 - FUNDRAISING

Applicability

• Regulation 1370, Fundraising - applies to fundraising conducted by or on behalf of the school and or where students are directly involved

• Not applicable to fundraising activities conducted by school support organizations as part of their charter

Applicability- Continued

• Deciding Factors– Conducted by the school– Conducted on behalf of the school– Involves Student Participation

• Optional, encouraged, but not mandatory• Door to door solicitation• Permission slips required• Conducted through class activities

Principal Approval

• Principal/program manager approval is required before applicable fundraising activities begin– Includes activities conducted on behalf of a school

• Sponsors of fundraising activities should complete and submit the Fundraiser Approval Request form to the principal

Financial Requirements

• Adhere to all FCPS accounting procedures, regulations, and guidelines

• Submit fundraising budget to principal– Overall fundraising goal– Estimated expenditures – Intended use of proceeds

• Provide financial summary to principal at completion of fundraising activity– Detailed ledgers/reconciliation – Other important backup documentation

Financial Requirements - Continued

• Accounting for Proceeds– All funds collected must be deposited, recorded,

and accounted for in a timely manner as per Regulation 5810, School Activity Funds Management

– All goods received or funds raised on behalf of a school and accounted for in school activity fund records will become property of the school

Financial Requirements - Continued

• Use of Funds– Schools must make every effort to utilize funds

raised for the purposes they were collected and where possible use the majority of funds collected during the school year when the funds were raised

– Fundraising proceeds from school-sponsored activities cannot be applied for the private benefit of individual students or staff members

FRAMEWORK AND KEY REVISIONS

REGULATION 1370 - FUNDRAISING

New Outline

I. PurposeII. Summary of ChangesIII. DefinitionsIV. General Fundraising RequirementsV. Financial RequirementsVI. RestrictionsVII.Contracts with Fundraising Vendors

Section III - Definitions

• Fundraising re-defined• Examples of fundraising activities are relevant

and updated to reflect current environment• Fundraising sponsorship clarified• Activities similar to fundraising, but covered by

other regulations identified (e.g., donations)

Section IV - General Fundraising Requirements

• Planning– What should occur before the fundraising activity

begins– Fundraising calendar– Review Fundraising Approval Checklist

• Approval– Required prior to beginning activity– Fundraiser Approval Request Form

Section IV - General Fundraising Requirements

• Student Participation– Optional– Activities during the school are limited – Permission slip required for door-to-door solicitations

Section IV - General Fundraising Requirements

• Online Fundraising– Use of public or personal crowdfunding sites to solicit

funds for official school-sponsored activities, field trips, or purchases is permissible with the principal’s approval

– Site must be approved by Department of Information Technology

– Fundraising sponsors should not provide FCPS bank account information to site

• All Merchant Services Agreements (MSA) must be reviewed and approved by the Office of the Comptroller, Department of Financial Services

Section IV - General Fundraising Requirements

• Other– Fundraising events must clearly state the fundraising

goal, intended use of the funds, and contact information for the event sponsor

– Any materials distributed (paper and/or electronic) to promote a fundraising activity must be age appropriate, not harmful to children, nonpolitical, and consistent with the current policies and regulations

Section V – Financial Requirements

• Budget Required• Funds accounted for properly in LSAF• Items purchased for the fundraising activity

require pre-approval by the principal• Students should not handle funds without direct

supervision

Section V – Financial Requirements

• Budget Required• Funds accounted for properly in LSAF• Items purchased for the fundraising activity

require pre-approval by the principal• Students should not handle funds without direct

supervision

Section V – Financial Requirements

• Proceeds– Used for designated/advertised purpose– Must benefit entire student body or specific group

(e.g. Class of 2017)– Cannot be applied for the private benefit of individuals– May be used to provide financial assistance to

students in need

Section VI – Restrictions

• Fundraising proceeds cannot be used for staff compensation, gifts to employees, or non-standard equipment

• FCPS staff may not receive or accept compensation, gifts, or other benefits for participating in fundraising activities

• Fundraisers and fundraising incentives should not include any items on the prohibited activity list (e.g. dodge ball, limousine rides)

Section VII – Contracts with Fundraising Vendors• School-sponsored fundraisers with external vendors

must have a written contract establishing the provisions of the fundraising activity

• The contract must be signed by the vendor and the school principal

• Refer to the list of approved fundraising vendors before entering into a new contract

Insert Matrix – Placeholder

Regulation 1370 - Fundraising

ANY QUESTIONS?