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Audit finds 37 schools used DonorsChoose, 34 without required approvals; GoFundMe projects flagged as prohibited
Summary
Internal audit found 37 Virginia Beach schools with DonorsChoose activity (34 lacked principal-approved fundraiser forms) and two GoFundMe projects (one $150 fully funded, one $2,000 partial) that the district prohibits; auditors recommended policy updates, reinforcement to principals and guidance for external parent organizations.
Internal audit told the committee that fundraising practices across Virginia Beach City Public Schools need clearer policy and stronger front-line controls after the audit identified unapproved crowdfunding projects and inconsistent use of updated fundraiser forms.
Auditor Karen said the team benchmarked other divisions and surveyed principals, student activity coordinators and bookkeepers at six schools. They identified 37 schools with DonorsChoose activity and found 34 of those projects lacked the required fundraiser approval forms. Karen said DonorsChoose is permitted but requires the same principal approval as other fundraisers, while GoFundMe is prohibited because it routes funds to specified bank accounts.
"We identified a total of 37 schools with DonorsChoose platform activity. 34 of those 37 did not have approved fundraiser forms for the project," Karen said. Audit work also found two GoFundMe projects tied to VBCPS: one fully funded $150 project for staff-lounge furnishings and another $2,000 campaign for after-school activities that was not fully funded. Principals and staff involved in those projects told auditors they were unaware GoFundMe was prohibited.
The audit produced three findings: 1) reinforce the prohibition on platforms like GoFundMe; 2) require that DonorsChoose projects use the updated fundraiser form and receive principal approval; 3) develop guidance and possibly policy to ensure external parent organizations identify their fundraising activities and provide required documentation. Karen said outdated paper forms and informal workarounds were root causes, and that management and the Department of School Leadership will work to push updated forms and add training and communications in school bulletins.
Committee members discussed possible alternatives and existing approved platforms such as the Virginia Beach Education Foundation for high-school fundraising. Auditors recommended examining the mechanics by sampling the 34 unapproved DonorsChoose projects to determine how they were created without principal knowledge; the committee asked for follow-up samples.
