No doubt you’ve heard there are fundamental fundraising changes afoot in Portland Public Schools (PPS).
The policy changes are intended to make school fundraising more equitable for all students.
It’s an issue that’s been passionately debated by both sides, but there’s at least one thing we can all agree on: Equitable school fundraising MATTERS!
Let’s take a look at the recent history of fundraising for PPS and detail what’s changing (and what’s NOT changing). How do the changes affect you, your school or foundation, the way you fundraise and the message you need to communicate to your donors? We have answers, and we’ll clear up some misconceptions too.
Measure 5 + The Birth of Local School Foundations
Back in 1990, voters approved Measure 5, which put limitations on how much property tax money could be used for schools. A few years later, a group of parents asked the school board if they could raise money privately to support teachers and staff. The school board agreed to allow local school foundations (LSFs) to raise money for individual schools, but with a caveat: an Equity Fund (known as the PPS Parent Fund) must also be established, and a portion of the money raised through the LSFs would benefit the Equity Fund. In 2019, a nonprofit called The Fund for PPS was established. The Fund for PPS (FPPS) is a vehicle for fundraising at any school in the district, even those without foundations.
What IS Changing:
Districtwide Foundation Replaces Local School Foundations
Under the current model, LSFs are allowed to raise money to pay for employees at their schools. After a fundraiser, individual schools keep ⅔ of the money raised (after the first $10,000), while the rest is earmarked for the aforementioned Equity Fund. The money from the Equity Fund is still distributed to schools according to income levels. Here’s one of the major changes: A districtwide foundation, the Fund for Portland Public Schools (FPPS), is taking the place of local school foundations when the fundraising is for teacher and staff salaries.
What’s Not Changing:
Booster Clubs + PTO/PTAs
“What?! I can’t donate directly to my kids’ school anymore?” When the district announced the changes in spring of 2024, this was front of mind for many public school supporters. But it’s 100% FALSE! Toss out the misconception that you can no longer fundraise for your kids’ schools. You absolutely can still donate to your kids’ school’s PTO, Booster Club and some foundations, and that money stays at that school; it just can’t be used for hiring teachers. If your Foundation has its own 501c3, it’s possible you can still fund other projects. But you’ll need to review the structure of your particular foundation. Some have their own 501C3s; some operate under the FPPS’s Employer Identification Number.
As far as staffing teachers, that’s now solely the responsibility of the FPPS. If you believe PPS needs more teachers, donate to the Fund for PPS. If you want to provide supplies and tools to enrich the classroom experience for your kids and their teachers, donate to your school’s PTO or fundraising arm.
What About The Money We Raised This Spring?
These new policies go into effect on July 1st, 2024, but there will be a yearlong buffer. Therefore, any money donated this year will be used as intended. For next year’s budget, foundations must arrange payment to the Fund for PPS by June 30th. However, many foundations have been advised to send payments in earlier to “play it safe”. The school administration is then responsible for allocating the funds to full-time equivalent positions (FTE). Make SURE you communicate this to your donors, as they want (and deserve!) to know where their money is going. This is just the tip of the iceberg; donors will likely have myriad questions.
What’s Next For Local School Foundations?
If you’re currently involved with an LSF, no doubt you’ve already started having conversations with your fellow foundation members about what the future looks like. There’s a lot to address during this transition period, and not all the answers are at your fingertips. Will you continue to raise money like you always have, knowing it can’t be used for staff? If your foundation has its own 501c3, do you need to restructure to comply with the new district policy? Before you become overwhelmed with too many questions and too few answers, begin by reviewing your bylaws, especially if your foundation is its own 501c3. If you don’t, be ready for guidance from the district. Reach out if you have specific questions, but you may not have answers right away, as the Fund is still ironing out the kinks.
Review Your Bylaws
The FPPS is supposed to send out formal communication to ALL donors and alert the foundations as to what will happen to any funds that aren’t spent in next year’s budget. While that’s pending, begin discussions with fellow board members about whether it’s be best to dissolve the existing foundation, repurpose it to align with district-wide fundraising efforts, or turn it into something else entirely. Repurposing will require you to update your financial policies in accordance with district guidelines. If you are an independent 501C3, you may need to also revise your bylaws. Above all else, funds must be managed transparently, which will not only keep you in compliance, but will also help preserve your donors’ faith in you. If they don’t trust you, they won’t give!
If your foundation is considering dissolution, look into the specific state and federal requirements to officially dissolve your organization, and seek legal counsel if necessary.
Document, Document, Document
Even if the future of your foundation is uncertain, a little preemptive planning will help you weather the transition. If you don’t already have a centralized spot and system for all your data – documents, contacts, processes, procedures – now’s the time to create one. Your institutional knowledge is priceless! Document everything. Just be sure to keep in mind privacy laws, if and when you’re ready to share this information with other parent-led groups.
Recurring + Monthly Donation Transfer
Your monthly donors ALWAYS (but now more than ever!) deserve special recognition and gratitude. Now they need a little extra communication, as well. Reach out to them and explain that changes are coming, but the need for their support will NEVER change! Hopefully, they’ll continue their monthly donations. If they do, provide next steps for how to transition those monthly donations to the PTO, the FPPS, or another parent-led fundraising organization. Give them options, and be transparent about where their money is going and how it helps. After all, they’re helping create a stable financial foundation in an uncertain future. They deserve the most heartfelt gratitude!
Keep Planning Events + Fundraising!
No need to let your fabulous event-planning skills lapse! You can still host fundraising events under the new policy. Dream big! We see many options. Host your annual gala, auction or fundraising event as usual. Or go for something smaller or more informal. A casual and informal “friendraiser” or community event could be a picnic in the park or a potluck. (Who doesn’t love a good potluck?! Variety is the spice of life!) We’ve seen successful high school pep rallies; no entry fee but a chance to drum up (pun intended) support, build community AND raise a little money. We also envision a district-wide event (or events), where local and national businesses, sponsors, community leaders and alum all come together to support the greater school community. Just imagine how powerfully impactful that could be! Until we know more details about exactly what the FPPS is going to support, our best advice to you is to KEEP FUNDRAISING – now more than ever!
Change Can Be Challenging
School fundraising is in a transition period. (If you’ve ever been in labor, you know that transition is THE most painful part!) How will this all play out? Only time will tell. What we DO know is the impetus behind the fundraising policy change is EQUITY. And equitable school fundraising is something we can all get behind.
Questions? Need fresh ideas and guidance? Reach out! Let us know what questions you have or resources that you need to help ease the transition. We’re here to help!