Question: Students at a small high school (with a total of 7 students) sold t-shirts for a "Project Earth" fund raiser. This school does not have an ASB. The money was deposited in the district general fund and a check was issued to the out-of-state vendor for the cost of the shirts. They must pay use tax on the amount paid to the vendor, but what about the profit? They made a profit of $116 which the school will retain. All the information found refers to sales by student body organizations and cafeterias. What about profit from fundraisers not associated with student body organizations?
Response: Even though this small group of students does not have an organized student body organization, the basic rules of fund raising projects should be observed. That is, profit earned shall be used to contribute to the educational program of the students beyond those programs or projects provided by the district. The expenditure should be agreed upon by a majority of the students and approved by the school administrator.
These rules should be followed because the activity of a fund raiser leads the public to believe they are contributing to a project of the students. In addition, since this was for "Project Earth" it would be appropriate for the expenditure to be for an environmentally related use. The school board should approve a policy or pass a resolution defining the guidelines for student fund raisers.
