Peabody panel OKs superintendent authority to approve online fundraising for outside 'friends' groups

The Peabody School Committee voted Feb. 10 to permit the superintendent to approve online fundraising by outside "friends of" organizations, boosters and PTOs rather than through city- or school-run accounts.

The committee acted after a presentation from a city treasurer’s office representative who said state auditing and banking rules limit the district’s ability to accept credit-card payments or use separate merchant accounts for student-activity funds. "They raised, according to online, $18,000. That's before the 20%. That does not include any other fees… But in reality, you only really raised 15," the treasurer said, illustrating how platform fees and processor charges reduce net proceeds.

Superintendent Dr. Vedala told the committee he can approve online fundraisers for external PTOs and booster organizations and recommended piloting that approach: "If the committee is open to that, we can explore allowing the friends groups, the boosters, the PTOs to explore that, and we just have to explain to them what it means." Committee members discussed safeguards such as requiring the outside group to have a separate EIN, turning off comments on fundraising posts, and clear end dates for campaigns.

Equity concerns surfaced: Miss Millman noted that some small student groups, like robotics teams with few volunteers, may not have a 501(c)(3) or a 'friends' group to funnel donations. Committee members urged staff to provide guidance and to encourage groups without their own nonprofit structure to partner with existing PTOs or booster clubs to avoid excluding students.

The motion, made by Missus Carpenter and seconded by Missus Cox, passed on a roll call with committee members recorded in favor (Dunn, Olympio, Millman, Carpenter, Cox, Amico). The superintendent and treasurer will work with PTOs and booster clubs to implement procedures and report back with recommended forms and timelines.

What happens next: the superintendent said he will begin reviewing submitted online fundraising requests for qualifying outside organizations and will work with staff to draft clear guidance about allowed platforms, deadlines and documentation requirements.