Dive Brief:
- School district fundraising efforts have increased nearly 350% from 1995 to 2010, according to a 2014 Indiana University study, District Administration reports.
- Schools that already receive higher levels of per-pupil spending from state and local sources based on property taxes also tend to receive larger donations.
- Many districts are struggling to find equitable ways to distribute these private donations without alienating donors.
Dive Insight:
During the Great recession, many state and local governments slashed funding for school districts and these funds, in many cases, still remain at austerity levels. While federal funding for many education programs has remained fairly consistent since 2010, the burden of other initiatives has shifted to states, some of which struggle to produce a budget for education at all.
In response to this situation, revenue from school-supporting nonprofits such as PTAs, PTOs, alumni associations, booster clubs, school foundations and local endowments, have increased in some communities to help take up the slack. The problem with this solution is that most volunteer patrons tend to take a myopic approach to how those funds are used, favoring their own local schools or special causes. Since wealthier communities—who already have higher per-pupil spending rates—are more likely to raise significant funds, this funding solution tends to be an inequitable option.
This article addresses ways in which some school districts try to “spread the wealth” in such situations. Another option may be to take a closer look at encouraging donations to local education foundations instead. If run correctly, these organizations may serve as a way to provide fundraising fairness.