Creating a charity structure which allows UK state schools to maximise their fundraising potential

Whilst the Government will of course deny it we are increasingly moving away from having a fully funded state education system in the UK.

Last years announcement of a 4% pay award for teachers is, even by the government’s own admission, far from fully funded. The reality is that government only covers 1.7% of the increase leaving 2.3% unfunded. The harsh financial implications are that for an average 1200 secondary school the pay increase will cost £150,000 per annum.

Faced with costs rising at a much greater rate than allocated budgets schools have two choices;  cut back of the level of education currently offered or to seek new income streams.

Sadly many seem resigned to going down the cost cutting route.
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The irony is that the majority of state school Head Teachers possess the financial and commercial  acumen, together with the strategic vision, to broaden revenue but are hampered from doing so by; staff who are reluctant to take on new responsibilities , a nervousness to invest in set up costs required to grow or simply because they are so entrenched in day to day matters they cannot give the time required to set up an income generating structure.

Parents are fully aware of funding difficulties school face and are generally willing to support where they can.

Many schools have PTAs in place where income is raised through parent run events. These PTAs are registered charities run by enthusiastic parents who see the benefits to their own children in having a fully resourced school. The downside is that the fundraising income ( typically in the region of £20,000 to £70,000 per annum) is below that needed by the school and is controlled by the charities governing parental body for use as they see fit rather aligned to school needs.

Generally state schools have accepted the PTA route on the basis that they possess neither the skills or resources to fundraises themselves.

Rather that rely only on event-based PTA run fundraising I would urge all state schools (irrespective of their location) to consider moving to a new structure which allows them to broaden their fundraising and be in control of the income raised.

Whether a school is new to fundraising or is currently raising income through a PTA I would recommend considering creating a Charitable Incorporated Organisation (CIO). A CIO is the simplest way to incorporate a charity , governed by a constitution and registered with the Charity Commission
This is not a degradation in any way of the work done by PTA’s ; it is simply an alternative option which provides more flexibility in fundraising , improved management of donations and the ability to apply for grants.

Fundamentally setting up a CIO helps protect the school’s assets by separating it charitable activities from its statutory functions. It also ensures that activities are aligned with its charitable purposes and do not conflict with the school’s public service remit. Trustees are appointed by the school rather than elected annually from the parent body as is the case with a PTA charity.