2018-19 K-12 Mid-Year Crowdfunding Risk Report

Crowdfunding has exploded in K-12 education. The number of campaign requests, as well as the number of donations towards these campaigns have significantly increased over the years. Data from one popular crowdfunding site for teachers showed that during the 2017-2018 school year, over 254,000 campaigns were funded, resulting in over $152 million in funds raised for K-12 classrooms, projects, and experiences.

This type of online crowdfunding has opened enormous opportunities for K-12 school districts to raise funds for projects, equipment and supplies. Crowdfunding is ultimately helping close the education funding gap and support the needs of schools and students. Its efficiency and effectiveness have been proven not only through the generous donation amounts, but also through the speed and ease compared to traditional methods like burrito or donut sales.

Despite the many benefits of online crowdfunding, school districts need to be aware of the associated risks and liabilities. Every single campaign that is posted poses serious liabilities for a school district, depending on how the campaign is pitched, what names are used, what the campaign is raising funds for, and what type of student information (photos, names, etc.) is displayed. Every donation made to the campaign also comes with financial liabilities for a school district, including where that money is routed, who controls or oversees those funds, who owns the funds, how inventory is accounted for, and how the school district manages to report those funds.

The lack of proper built-in oversight, tracking and reporting on crowdfunding sites – even education-specific sites, present significant legal and reputational risks for school districts across the country. Every school district should have oversight for any online fundraiser conducted in the name of the district, a district school or a district employee.

At Livingtree, it’s our goal to help school districts understand the risks of crowdfunding, and better manage the process within their district to ultimately raise more money. Due to the recent publications from state auditors and school board associations on crowdfunding, Livingtree decided to take a deeper dive and report what is happening right now. To provide a better picture of the current risks school districts are facing this year, we took the latest data from the earlier mentioned crowdfunding website to develop this Mid-Year Education Crowdfunding Report.

According to the crowdfunding website, over 145,000 projects have been fully funded so far in the 2018-2019 school year. At that pace, we expect to see around 290,000 fully funded campaigns by the end of this school year, an increase of 36,000 campaigns from the previous year. In addition, this year’s completed campaigns have raised over $77 million of donations for teachers and school projects. Based on that number, we’d expect to end the school year with around $154 million of donations, an increase of $2 million over last year. Since this data is only taken from one popular crowdfunding site, it’s likely that the overall crowdfunding totals are much greater.

To further understand this issue, Livingtree compiled all of the campaign data from the crowdfunding site for the 2018-2019 school year and composed lists to help identify which states currently have the highest risk when it comes to education crowdfunding. Below, we’ll examine the states with the Highest Average Amount Raised per District, the Highest Average Number of Campaigns Posted per District, and the Highest Average Number of High Risk Campaigns Posted per District.

Note: the data is organized to represent states in amounts per district to give the most accurate representation of every state. Hawaii and the District of Columbia are not represented in the data.

Highest Average Amount Raised per District

StateAvg Amount Raised Per DistrictTotal Amount Raised (Statewide)
Florida$57,479.91$4,253,513.32
Nevada$42,042.15$756,758.69
Utah$40,327.33$1,653,420.65
Maryland$40,118.36$962,840.74
North Carolina$32,785.70$3,770,355.42
South Carolina$22,163.51$1,861,734.46
Louisiana$18,089.54$1,266,267.86
California$13,182.13$12,404,386.71
Delaware$13,141.04$249,679.84
Virginia$12,485.71$1,648,113.87
Georgia$10,534.94$1,896,289.92
Massachusetts$9,805.79$2,333,777.15
Texas$9,486.36$9,761,468.95
Tennessee$8,855.31$1,248,599.03
Connecticut$8,411.12$1,421,479.43
Arizona$8,395.31$1,897,340.05
Rhode Island$7,415.36$259,537.51
New York$7,076.41$4,932,259.16
Alabama$6,898.59$945,106.61
Mississippi$6,152.57$929,038.73
Alaska$6,018.77$318,994.63
Idaho$5,595.59$643,492.62
Colorado$5,291.34$941,858.24
Oregon$5,030.50$905,490.29
Indiana$4,891.85$1,447,986.53
Washington$4,837.99$1,441,720.76
West Virginia$4,749.19$261,205.20
Pennsylvania$4,356.19$2,178,095.45
Oklahoma$3,841.52$2,001,429.55
Illinois$3,826.11$3,309,581.73
New Mexico$3,691.19$328,515.69
Kentucky$3,689.04$645,582.54
Minnesota$3,072.05$1,044,497.13
Michigan$2,960.27$1,628,147.41
Wisconsin$2,899.49$1,223,582.74
Missouri$2,734.23$1,424,533.66
Arkansas$2,624.42$624,611.88
Ohio$2,441.36$1,508,758.66
New Jersey$2,376.73$1,430,790.69
Wyoming$2,031.94$97,532.93
New Hampshire$1,898.28$317,012.57
Maine$1,731.74$412,154.09
Kansas$1,263.09$390,295.37
South Dakota$970.19$146,498.51
Iowa$890.90$310,032.83
Nebraska$613.40$152,735.74
Montana$552.87$229,439.89
North Dakota$319.74$58,192.12
Vermont$228.82$60,409.64

Florida made number one on the list for the highest amount of money raised from the crowdfunding site, averaging out at over $57,000 per school district. The next three states all averaged over $40,000 in funding per school district.

Regardless as to whether these donations reach schools in the form of funding or project items, a district must be able to ensure that every dollar is tracked and properly routed, and oversee the process to maintain accurate inventory and donation reporting. State-wide totals are also included in this report for reference.

Highest Average Number of Campaigns Posted per District

StateAvg Number of Campaigns Per DistrictTotal Number of Campaigns (Statewide)
Florida107.27931
Nevada86.11550
Maryland76.01823
Utah64.62648
North Carolina62.57185
South Carolina47.03947
Louisiana30.12107
Delaware28.8547
Virginia26.13442
California20.819562
Georgia20.03595
Massachusetts17.04053
Connecticut16.02710
Tennessee15.82229
Texas14.514963
Rhode Island14.4505
New York13.19097
Alabama12.01646
Arizona11.82674
Mississippi10.41574
West Virginia10.3564
Indiana10.33035
Oregon9.31680
Colorado9.31661
Washington9.22739
Idaho9.01032
Alaska9.0475
Pennsylvania8.84399
Kentucky7.21258
Oklahoma7.13685
New Mexico7.1628
Illinois7.06057
Michigan6.03304
Wisconsin5.82458
Minnesota5.71951
Missouri5.72965
Arkansas5.01185
Ohio4.93030
New Jersey4.32601
Maine3.5831
Wyoming3.5166
New Hampshire3.3547
Kansas2.7848
South Dakota1.9294
Iowa1.9659
Nebraska1.4339
Montana1.0414
North Dakota0.6106
Vermont0.5120

Florida again tops the list at number one for the highest average number of campaigns posted from the crowdfunding site, at 107.2 campaigns per school district so far this year. The higher the number of campaigns being posted, the higher the risks and liabilities for school districts without fundraising controls in place. And without the ability for school districts to review and approve campaigns before they go live, it’s almost impossible to be sure that the campaign meets all of school district’s requirements.

Highest Average Number of High Risk Campaigns Posted per District

StateAvg Number of High Risk Campaigns Per DistrictTotal Number of High Risk Campaigns (Statewide)
Nevada7.7139
Florida6.9513
Maryland6.3150
Utah4.8198
North Carolina3.8434
South Carolina2.6220
Delaware2.547
Rhode Island2.278
Massachusetts2.2519
Virginia2.0259
Louisiana1.8127
New York1.61107
Texas1.61631
California1.41345
Georgia1.4252
Connecticut1.2209
Arizona1.0223
Tennessee0.9130
Washington0.8229
Pennsylvania0.7373
Illinois0.7621
Oregon0.7120
Alabama0.791
Colorado0.7118
Idaho0.776
Indiana0.6190
New Mexico0.653
Alaska0.529
Minnesota0.5179
Kentucky0.589
Oklahoma0.5259
Michigan0.4224
Wisconsin0.4170
Mississippi0.459
New Jersey0.4233
West Virginia0.420
Missouri0.3173
Ohio0.3197
Maine0.361
New Hampshire0.240
Kansas0.258
South Dakota0.228
Iowa0.259
Arkansas0.240
Nebraska0.128
Vermont0.09
Montana0.014
North Dakota0.04
Wyoming0.01

Nevada leads the way for the highest average number of high-risk campaigns posted from the crowdfunding site, at 7.7 high risk campaigns posted per district so far this year. At Livingtree, we identify high risk campaigns as those classified on the crowdfunding website as either “Special Needs” or “ESL.” The classification of high risk is due to the fact that “Special Needs” campaigns have a high possibility of violating a student’s IEP, which a district would be legally required to fund through IDEA. There are also special services that ESL students qualify for that can’t be funded outside of the school district. These are all in addition to the existing risks that go along with crowdfunding, making them much higher risk campaigns. So far this school year, “ESL” and “Special Needs” are ranked as the 7th and 8th most popular project categories.

What to do next:

Again, it’s important to note that these statistics were generated from a single crowdfunding site, and that this is only a piece of the “crowdfunding picture.” We’d expect that total crowdfunding numbers are much larger, however it is difficult to collect data from every single site out there.

Because of these statistics and the associated risks, some districts take the easy route by setting policies that ban crowdfunding. However, this option forgoes the many benefits that crowdfunding has to offer for school districts, and creates a new task of having to police the large number of crowdfunding sites to ensure district members aren’t using them.

The other option is to evaluate online fundraising management options and adopt one that provides an automated district approval process for all campaigns, tracks all donations, routes funds through a district account, gives the district access to their donor information, provides aggregated reporting for every campaign, and has built in tools to make fundraising easy for any PTA/PTO, booster, club, team, or district member.

Once a management platform is selected, procedures and guidelines can be written to accompany the school district’s fundraising policies (no, you don’t actually have to re-write policies!). These should clearly outline rules for only using the district’s chosen fundraising management platform, campaign approval criteria, required campaign content, and ownership of the funds raised.

Once this is all in place, start fundraising! With your district overseeing the entire fundraising process and having official procedures to guide the process, fundraising becomes manageable and easy.

If you are curious about your school district’s risk potential on the crowdfunding site we used, check out the free tool created by Livingtree to evaluate your district’s risk potential, dollars collected, and number of campaigns posted so far this school year: https://learn.livingtree.com/risk-analysis

Is your school district ready to start evaluating fundraising management solutions? Then download our free Crowdfunding Considerations Guide for K-12 School Districts and know the 7 important areas to evaluate when looking at fundraising sites: https://try.livingtree.com/crowdfunding-considerations-blog/

Data Sourced from:
https://data.donorschoose.org/explore-our-impact/

How A School District Raised Over $10,000 via Email

When you hear the word “homeless” the first image that comes to mind probably isn’t a child, is it? And yet there are more than 2,300 students in the Austin Independent School District that experience homelessness each year. The effects of that are something that no child should experience, especially during the holiday season.

That’s why the Austin Ed Fund launched a campaign to raise funds for Project HELP, a program of the Austin ISD that supports students experiencing homelessness by providing material support like gift cards for food and clothing, bus passes and connections to other community resources.

After launching the campaign, the Austin Ed Fund sent out emails that resulted in over $10,000 in donations, but how?

The Austin ISD is in its third year of using Livingtree Give, a platform that allows members of every school in the district to launch online fundraising campaigns, while allowing the district to oversee the process, ensure that all campaigns are in compliance with district, state and federal policies, and report on all of their fundraising activities.

Unlike other mainstream education crowdfunding sites who maintain and own the donor’s information for future advertising purposes, Livingtree Give enables the Austin ISD to store and build their own database of donors. With this database, the Austin ISD can easily provide information to previous donors about other campaigns within their district, and that’s exactly what they did for the Project HELP campaign.

Using Livingtree Give’s built-in email communication functionality, the Austin Ed Fund sent emails about the Project HELP campaign to their database of donors. In just a week’s time, their community came together to support the campaign and raise over $10,000.00. With such a generous response to the campaign, they’ve now doubled the goal from $10,000 to $20,000 in hopes of truly meeting the needs of every family and student experiencing homelessness this holiday season.

To see the progress or make a contribution, you can visit the Project HELP campaign page here.

For more information on how Livingtree Give can help your school district, visit http://wordpress-153222-715006.cloudwaysapps.com/give

Who own’s your donor’s information isn’t the only thing you should worry about. Download our Crowdfunding Considerations guide to learn about the 7 areas that administrators should consider when evaluating crowdfunding sites & policies for the district.

Is Your School’s PTA/PTO Ready for #GivingTuesday?

Every year on Livingtree Give, we see projects from outdoor gardens to programs for the arts.  Every project has an outcome directly related to students. Where else can you have such an impact on the future of our country and the world to inspire a life-long journey of learning?

One of the biggest problems for schools is funding. Schools need resources now to support the over 51 million students across our country. Our school’s educators, clubs, orgs, teams, and PTA/PTOs work tirelessly to secure funding that supports the additional educational resources and experiences for our students, and that often includes fundraising. One of the best days of the year to fundraise is on #GivingTuesday

#GivingTuesday started off as an idea in 2012 and has turned into the largest single day of philanthropy in the world. This day provides an enormous opportunity for your school’s PTA/PTO to market their campaigns, involve the community, and bring in more money than any other day of the year.

Here’s why you should launch a campaign:

1. Education is the second largest category of giving on the #GivingTuesday. People are already looking for opportunities to give to education so take advantage of the momentum.
2. It is a great way to engage your community in what your school is doing. #GivingTuesday is about connecting people to your mission!
3. If you have an urgent need at your school it is a great way to raise the money you need.

Livingtree Give has innovated school fundraising, and provides modern online tools for school PTA/PTOs. Every PTA/PTO account has the ability to manage their school and donor contacts, launch a multitude of online fundraisers, promote their campaigns and activity portal through built in email and social sharing tools, and both reconcile and report on all transactions automatically.

To help further innovations and improvements in Education Technology, Livingtree is donating part of the proceeds generated on #GivingTuesday to Ed Tech non-profit StartEdUp!

For more information and to sign up for a free account, CLICK HERE.

You can also download our “GivingTuesday for Education Toolkit” that we created in coordination with PayPal and 92Y.

You can learn more about #GivingTuesday and our partnership with 92Y and PayPal in the video below:

#GivingTuesday 2018 + Livingtree Give

Take part in this year’s global day of giving!

#GivingTuesday (11/27) + Livingtree Give

What is #GivingTuesday and how is Livingtree Give involved?

#GivingTuesday is a global movement where campaigns happen in almost every country in the world.  For the past two years, Livingtree Give (Formerly Edbacker) has been proud to partner with PayPal and 92Y (one of the founders of #GivingTuesday) to help promote #GivingTuesday in education.  Watch the video at the end of this for more!

When is #GivingTuesday this year?

This year, #GivingTuesday is on Tuesday, November 27, 2018.

Who can participate in #GivingTuesday?

Anyone, anywhere can get involved and give back in a way that’s meaningful to them. There’s no minimum or limit to how people can do good.  All types of organizations are welcome to participate.

Does my campaign have to end on #GivingTuesday?

While #GivingTuesday is celebrated on November 27th, your campaign can be much longer than one day. We see a lot of campaigns that kick off before #GivingTuesday or that launch on #GivingTuesday and connect to a larger end-of-year or holiday campaign.

To help further innovations and improvements in Education Technology, Livingtree pledges to donate part of the proceeds generated on #GivingTuesday to Ed Tech non-profit StartEdUp!

How can I get started?

We’ve put together a “GivingTuesday for Education Toolkit” to provide you with some helpful resources that you can use to setup a successful campaign, including:

#GivingTuesday mega messages
Sample outreach emails
Ideas for getting involved
Social media tips

Livingtree: Always Growing

Livingtree was created by a family in 2013 as a solution to keep families connected to the academic lives of their children through technology. As a company, we are on a mission to bring the best tech platforms and practices to schools and families, and believe that together we can bring out the best outcomes for students and families.

One of the first steps in that direction was to acquire Class Messenger in 2016 to keep the tens of thousands of educators and families connected. The acquisition kept the app operational and also provided Class Messenger teachers with access to free Livingtree Engage accounts. Since then, we’ve continued to provide support for Class Messenger users, while assisting many of them in transitioning to Livingtree Engage.

At the beginning of 2018, we grew even more by announcing the acquisition of district fundraising tool, Edbacker, and appointing Edbacker’s founder, Gary Hensley, as our new CEO. The addition of Edbacker helped us continue to fulfill our mission of connecting schools with their broader communities, while also providing districts with a much-needed solution to crowdfunding that fills the education funding gap.

We grew again in the month of June when we hired Dr. Steve Constantino, the nation’s leading expert in family engagement and former Virginia State Superintendent. As a member of the team, Dr. Constantino is helping to shape the Livingtree Engage platform through his research and best practices, and ensure that educators, schools, and districts have the appropriate tools they need to actively engage families.

In the month of August, we launched a new website with the rebranding of our products under Livingtree. The original Livingtree product became Livingtree Engage, while Edbacker became Livingtree Give. And with that, we made enhancements and launched new features in each product for the new school year (which we will take a deeper dive into in our next blog posts).

We’ve had extraordinary growth, and we continue to develop new partnerships with districts across the country to provide family engagement and fundraising solutions. We are continuing to develop Engage and Give, so that school districts have the best tools to help every student succeed.

In our next blogs, we’ll cover the most recent enhancements to the Engage and Give platforms. To learn more about the individual products visit Livingtree Engage or Livingtree Give, or follow us for new and updates on Facebook, Twitter, Instagram and LinkedIn.

5 Liabilities of Crowdfunding that Every K-12 District Should Know

Over the years, there has been a growing spotlight on the education funding gap. The gap has become more of a problem for many K-12 school districts with recent statistics showing an increase in teacher spending on school supplies.

Many schools and districts are finding that traditional fundraising can no longer cover some of the greater costs that are needed, and as a result of the mass growth in technology, an increasing number of K-12 members are now requesting funds through crowdfunding sites. These sites are providing valuable opportunities for K-12 staff, organizations, and teams to raise funds for additional resources and experiences, while addressing the needs of our schools and students.

However, these Crowdfunding sites were not built specifically for school districts and lack the necessary oversight and control. Every single online fundraising campaign that is posted poses serious liabilities for a school district, and can result in a number of legal and financial violations.

As a result of the liabilities, some districts take the easy route by setting policies that ban crowdfunding. However, this option forgoes the many benefits that crowdfunding has to offer for school districts, and creates a new task of having to police the large number of crowdfunding sites to ensure district members aren’t using them. It can also imply a lack of trust in their educators. Until the educational funding gap is solved, schools should absolutely fundraise online, however it should be done in an appropriate way. That’s why it’s important that district leaders be aware of the liabilities associated with crowdfunding, and use the information to evaluate crowdfunding platforms for their district.

Below, we’ve put together the 5 Liabilities of Crowdfunding that every K-12 District should know:

1. Fundraising on the School or District’s Behalf: Most Crowdfunding sites will allow anyone within the district to launch fundraising campaigns. This means they can use the name, logo, or images of the school or district without any form of consent. Based on how the campaign is pitched, the campaign can reflect poorly on the district, and the results of the campaign can cause PR nightmares.

2. Sharing Student Information: Everyone loves to see pictures and know the students that are being directly impacted by their contribution, however this can be a largely overlooked FERPA violation. Sharing student images or names without consent can create huge liabilities for a district.

3. Routing Funds through Personal Accounts: Many Crowdfunding sites transfer the lump sums directly to the person who posted the campaign, which raises legal and financial accountability issues. In most cases, this is also a violation of district and state policies that affirm that the District Treasurer is supposed to be in charge of the funds.

4. Ownership: Once completed, who actually owns those funds or products that are produced through that campaign? Was the campaign personal or on behalf of the district? Is that the property of a teacher, a school, or the district? Some teachers will tell you that everything they raise is for the school, while others will tell you differently if policies are not in place to outline this problem.

5. Existing/Incompliant Resources: It’s actually a common occurrence for staff to raise money for items that either already exist elsewhere, or already have funding. It’s also not uncommon for staff to raise money for technology that isn’t approved or that the curriculum isn’t available for.

These are all problems that Livingtree Give has solved.

Livingtree Give takes the same concept of online fundraising, but uses features built specifically for school districts to do so in a coordinated fashion in order to eliminate these liabilities.  Give provides district oversight to every fundraiser, while also assuring donors that every single campaign has been vetted and approved through the district’s built in and customizable approval process. District admin can now track every single dollar, route funds through a single district account, easily disperse funds to the appropriate accounts, and generate reports – all in real time.

DOWNLOAD OUR FREE GUIDE “Crowdfunding in the Classroom”
for more information on the risks and liabilities of crowdfunding, and the best practices to help your school district ultimately raise more money through online fundraising!

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