6605 - CROWDFUNDING
This policy applies to the use of any form of crowdfunding utilizing an online service or website-based platform for the financial benefit or gain of the District – be it a specific classroom, grade level, department, school, or curricular or extra-curricular activity.
For purposes of this policy, "crowdfunding" is the solicitation of funds, supplies, or other resources from individuals and/or organizations to support specific activities,projects, or programsapproved by the District. Crowdfunding is typically from a large number of individuals/organizations utilizing internet-based technologies.
Crowdfunding activities aimed at raising funds for a specific classroom or school activity, including extra-curricular activity, or to obtain supplemental resources (e.g., supplies or equipment) that are not required to provide a free, appropriate, public education to any students in the classroom may be permitted, but only with the specific approval of the District Administrator.
Such approved crowdfunding activities are authorized to use the District name, logo, mascot, or any other name or slogan that would associate an activity with the District. Unauthorized use of District branding is strictly prohibited. (See Policy 9700.01 - Advertising and Commercial Activities)
All crowdfunding activities shall align with the financial, operational, and platform standards outlined in Board policies. The Principal shall be responsible for monitoring compliance with this policy, approving platforms, and reviewing activities for alignment with District goals. If a crowdfunding activity is found to be in non-compliance with any appropriate Board Policy, it will result in the immediate cessation of the crowdfunding activity and the District Administrator may prohibit future fundraising privileges.
All approved crowdfunding activities shall protect the privacy of students, children, and young adults in accordance with Board policies and District administrative guidelines and applicable State and Federal law, including Family Education Rights and Privacy Act (FERPA) and Individuals with Disabilities Education Act (IDEA).
All funds raised through approved crowdfunding activities shall be disbursed in accordance with Policy 6608 - Accountability and Oversight of Fundraiser and Crowdfunding Disbursement and all other applicable Board policies.
Materials, supplies, equipment, and other proceeds of the crowdfunding activity shall become the property of the District or school. Direct cash payments or equivalent payment to District-personnel is prohibited. All fiscal transactions shall comply with appropriate Board policies.
Approved crowdfunding activities must be conducted through a district-approved platform that meets the following standards:
- Systems and Organizational Controls (SOC 2) Type I Certification or equivalent standard recognized as best practice in the industry. (minimum):
The platform must demonstrate compliance with SOC 2 or equivalent standards, ensuring strong controls for security, availability, processing integrity, confidentiality, and privacy. Compliance with this standard guarantees that the platform adheres to industry-recognized best practices for safeguarding sensitive data and financial transactions. - Low Fees: Platforms must not exceed a fifteen percent (15%) fee structure to ensure that the funds raised benefit the District maximally and minimize donor loss.
All crowdfunding activities are subject to AG 6605 and other applicable Board policies, including, but not limited to, Policy 5830 - Student Fundraising.
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