Seattle Council PTSA Clarifies Fundraising Issue
Not completely (more on that at the end) but better. (Notes in red are mine.)
From SCPTSA;
From SCPTSA;
Why the sudden change in policy of the new 10% fee for fundraising on school grounds by the district?
It
not really a new policy, but more accurately a policy the district
should have been following but was not. In a workshop sponsored by WASBO
(Washington Association of School Business Officials) the district
learned they were not in compliance with State laws around Associated
Student Body (ASB) activities and funds (WAC 392-138-010, RCW
28A.325.020 and RCW 28A.325.030). The rules indicated the following
activities turn a parent group fundraiser into an ASB activity:
* A majority of the work is performed by the students.
* The parent group uses the school name.
* The use of district facilities is not followed per district policy.
* School district personnel are involved during staff time (during the school day).
According
to these state laws, when a fundraising activities meets these
requirements, then the ASB receives a portion of the proceeds. The
procedures suggested a fee of up to 40%, but SCPTSA worked with
the district to compromise at 10% or $1500 maximum. We were happy with
this compromise, and we are happy that the 10% goes back to students at
the school. It seemed more reasonable, and it was still within the
letter of the State law.
SPS is NOT charging any fee to manage these funds (and they could) and will take no money from any of this type of fundraising.
What are ASB funds? What is ASB?
According
to the State law definitions, ASB is "Associated Student Body
organization" a formal organization of students, including subcomponents
or affiliated student groups such as student clubs, which is formed
with the approval, and operated subject to the control, of the board of
directors of a school district in compliance with this chapter.
(2)
"Associated student body program" means any activity which (a) is
conducted in whole or part by or in behalf of an associated student body
during or outside regular school hours and within or outside school
grounds and facilities, and (b) is conducted with the approval, and at
the direction or under the supervision, of the school district.
Each
school has their own ASB account to use for student activities for that
specific school. The principal manages this account in elementary
schools, and students participate in the management of the ASB fund in
secondary schools. There are very specific guidelines for how this
money can be spent, but it must be used for students.
How does the PTA pay the portion of proceeds to the ASB fund? How will this policy be implemented?
So,
if a PTA has a fundraiser on school grounds during school hours, the
PTA must pay the school ASB fund 10%, up to $1500 (correction from the
previous enews). If the fundraising event meets these conditions the
principal must approve the activity and a contract is signed by both the
principal and the school PTA. The template of this contract has been
provided to all principals by the district.
At
the end of a fundraising event, the school PTA writes a check to the
school ASB fund. The principal then has the discretion to choose how to
use those ASB funds (within State law). The district can not use the
money for whatever they want; the money in ASB funds is intended to stay
at the school for the students.
I
was told that the STUDENTS (likely along with the PTA officers
representing parents) decide how the money will be used. I have no idea
why the principal would get to decide over the parents who are
directing the activity. I will seek clarification again on this point.
Why had PTAs not heard about this ASB policy before?
The
district sent this policy to ALL elementary school principals in April,
and re-iterated it for us again yesterday. The district policy states:
To
comply with state law, Seattle Public Schools developed new procedures
for school-based fundraising. If fundraisers occur during the school day
and involve students, we are required to ensure that students receive a
portion of the proceeds. We worked with PTSA leadership during the past
school year to create these procedures, which are aimed at making sure
that our students retain a portion of the proceeds for events that they
participate in. As a result, if a PTSA fundraiser is an activity that
is co-sponsored with ASB, 10 percent - up to $1,500 - goes to the
school's ASB fund.
I find this section confusing because it implies that high school and middle schools have been doing this already and they realized that elementaries should be as well. I'll have to ask.
Here are the exact "rules" as laid out by the District (these rules were sent to Principals in April 2013):
1) PTSA Fundraiser
If
the activity is carried out in accordance with all 3 items listed
below, it is a PTSA event (not ASB or Co-sponsored) thus the PTSA
retains all proceeds:
A) outside of regular school time (after school, evening or weekend)
B) the PTSA does the event planning, organizing, money-handling
C) the event is advertised as a PTSA fundraiser (i.e. Adams PTSA, Ballard Athletics Booster Club).
2) Co-Sponsored Fundraiser
If
the activity (walking, reading, etc.) is carried out during school
time, it is a co-sponsored event, and both PTSA and students (ASB) will
share the proceeds according to a pre-approved agreement. School time
includes lunch and recess periods. The percentage allocation may vary
according to the distribution of services; at minimum, the ASB will be
allocated 10% of the proceeds up to $1,500.
Are all PTA fundraising activities and events required to pay the 10% portion of proceeds to ASB funds?
No.
Only fundraising activities during the school day that require the use
of district staff (teachers, etc.) and requires student activity (such
as running or walking for a Walk-A-Thon) are required to pay the ASB 10%
($1500 maximum). Auctions, direct donations (annual donation
campaigns), and other PTA fundraising activities not meeting these ASB
requirements are NOT subject to this allocation of proceeds.
We
hope this clarifies the policy and gives some background as to how it
came about. We apologize for any confusion this caused - and will do our
best to keep you posted if anything changes! The district understands
how important PTA fundraising is, and they are working with SCPTSA to
ensure that we can continue this activity and follow the law. We are
working together on this issue. Please contact me at
president(at)seattlecouncilptsa.org if you have any more questions or
concerns.
Sincerely,
Katherine Schomer
President, Seattle Council PTSA
Comments
The statement made by Ms. Schomer "According to these state laws, when a fundraising activities meets these requirements, then the ASB receives a portion of the proceeds" does not appear to be accurate. My reading of the law, not District procedures, is that all of the money in those circumstances goes to the ASB, not just a portion of it, because it is public money - not private money.
Some sample sentences from the finding:
"At least $96,011 in public funds raised by students and District employees was not deposited into a District bank account. The money instead was deposited into private bank accounts that were wholly or partly controlled by coaches or parents.";
"When ASB and booster club funds are commingled, the entire amount is considered to be public money and is subject to state law pertaining to ASB funds."
The District's response at the time:
"The District concurs with this finding. Training of appropriate District personnel and relevant policies will be made mandatory and enhanced to ensure there is clarity between an ASB sanctioned activities from that of other, non district sanctioned groups including Booster clubs. In addition, the District will ensure that ASB money is deposited in ASB accounts in accordance with state law and District policies." (bold mine) It doesn't look like any mandatory training was conducted, or was ineffective at best.
There are other WACs that regulate this activity beyond the ones Ms. Schomer mentions. They are mentioned in the finding. One of them is WAC 392-138-014 Accounting procedures and records, which makes the distinction between "Associated Student Body public money" and "nonassociated student body private moneys".
Granted, it's has been over 7 years since this finding was issued, but the information is out there. And, there have been changes in principals. But that is no excuse. If someone becomes a principal, they need to be aware of all legal requirements - or at least be aware that they should inquire about legal requirements around ASB and other activities.
This is common practice & commonly known in high schools. All money raised with student participation in fundraising must go to ASB. Not PTSA or Boosters or any other organization. This is where student exchange programs like Roosevelt & Garfield have, ran into trouble. Because the money raised this way has to be used under the WAC governing ASB accounts & can not be donated to outside groups like travel expenses for foreign students.
I also do not think that the 10% given to ASB is legal. It must be all the income from the event. The WACs governing ASB fundraising also do not limit it to the school day. So I don't understand where SPS is getting their information.
I think that this is the first time SPS is communicating this to elementary schools because they have assumed that those students do not participate in fundraising.
-HS parent
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