An Administrator's Guide to California Private School Law

Chapter 19 – Fundraising

Commercial Fundraising contracts must also contain the following specific provisions:  Provision requiring that each contribution in the Commercial Fundraiser’s control or custody shall, in its entirety, and within five working days of its receipt, be deposited in the school’s bank account or delivered to the school. 2545  If the Commercial Fundraiser proposes to pay any person or entity to secure their attendance at, or sponsorship of, a fundraising event, the contract must set forth the maximum dollar amount the school will pay for those appearances or sponsorships. 2546 Fundraising Counsel contracts, on the other hand, must contain the following specific provision:  Statement that Fundraising Counsel will not at any time solicit funds or

assets, receive or control funds or assets, or employ or engage any compensated person to solicit, receive, or control funds or assets for charitable purposes 2547 .

Notwithstanding the duties and obligations of Commercial Fundraisers and Fundraising Counsel, nonprofit corporations must ensure all fundraising activities are conducted without coercion, approve all written contracts and agreements, and establish and exercise control over the fundraising activities conducted for its benefit. 2548

U SE OF T HIRD P ARTY I NTELLECTUAL P ROPERTY I N F UNDRAISING

Section 4

Schools must secure an appropriate license prior to using the intellectual property rights of others in fundraising events. For example, if a school is having “ Harry Potter” or “ Star Wars” themed fundraising events, it must first secure the right to use the intellectual property associated with those movies, including the names, images, characters, and music associated with those movies. If a school fails to secure permission to use intellectual property, it could face an injunction (an order to prevent the use) or worse, it may have to defend against an infringement lawsuit from the owner of the intellectual property. This Guide provides a discussion pertaining to intellectual property in general, including when a license is necessary, in Chapter 20.

T RUSTS F OR I NDIVIDUAL S TUDENTS /E MPLOYEES /T EACHERS

Section 5

Schools may establish donation trusts for the benefit of students, teachers, employees, or their families. Initially, schools should ensure donors know that donation trusts do not guarantee enrollment or re-enrollment of any particular student at the school. Also ,because theses trusts

An Administrator’s Guide to California Private School Law ©2019 Liebert Cassidy Whitmore 610