Senate File 2129 - Introduced SENATE FILE 2129 BY COMMITTEE ON EDUCATION (SUCCESSOR TO SF 2006) A BILL FOR An Act authorizing the establishment of a philanthropy account 1 within an agency fund established by a school corporation. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5374SV (2) 85 je/sc

S.F. 2129 Section 1. Section 298A.13, Code 2014, is amended to read 1 as follows: 2 298A.13 Trust, permanent, or agency funds. 3 1. Trust, permanent, or agency funds shall be established 4 by any school corporation to account for gifts it receives to 5 be used for a particular purpose or to account for money and 6 property received and administered by the district as trustee 7 or custodian or in the capacity of an agent. Boards may 8 establish trust, permanent, or agency funds as necessary. 9 2. The board of directors of a school corporation may 10 establish a philanthropy account within an agency fund to 11 account for proceeds of a philanthropic fundraiser approved 12 by the board. To establish a philanthropy account, the 13 board shall establish the public purpose for organizing the 14 fundraiser and shall, by resolution, authorize the fundraiser 15 for the specific philanthropic purpose and for a specific time 16 period. The board shall ensure that all materials relating 17 to the fundraiser clearly identify the philanthropic purpose 18 for which the school corporation will use the excess of the 19 proceeds raised over the costs of the fundraiser. Fundraisers 20 shall not involve professional or commercial fundraisers 21 and shall not include solicitation of grants. The board 22 may establish more than one philanthropy account but shall 23 ensure that each account separately identifies the assets 24 and liabilities related to a separate philanthropic purpose 25 approved by the board. A philanthropy account shall consist 26 only of voluntary donations raised by the students or school 27 corporation employees for a specified philanthropic purpose 28 approved by the board. A school corporation shall provide, 29 upon request and without cost to the requesting party, 30 financial disclosure information concerning contributions 31 received and disbursements for a philanthropy account that is 32 the subject of the request. For purposes of this section, 33 “philanthropic purpose ” means an educational, charitable, 34 humane, scientific, public health or welfare, environmental, 35 -1- LSB 5374SV (2) 85 je/sc 1/ 3

S.F. 2129 disaster relief, or other similar objective defined in 1 department of education rules. The philanthropic purposes 2 for which moneys in an account may be used shall be limited 3 to public purposes that are related to a student or students 4 enrolled in the school corporation and their families, to 5 the school corporation, to the community in which the school 6 corporation is located, or to a nonprofit organization operated 7 exclusively for the purposes set forth in section 501(c)(3) 8 of the Internal Revenue Code and that are eligible to receive 9 donations from a school corporation in accordance with this 10 subsection and department of education rules. However, such 11 a nonprofit organization shall not be a political, religious, 12 athletic, postsecondary, or similar organization. The school 13 corporation shall obtain written permission from a nonprofit 14 organization prior to using its name in materials relating to 15 the fundraiser. 16 EXPLANATION 17 The inclusion of this explanation does not constitute agreement with 18 the explanation’s substance by the members of the general assembly. 19 This bill authorizes the board of directors of a school 20 corporation to establish a philanthropy account within a school 21 district’s agency fund established under Code section 298A.13 22 to account for proceeds of a board-approved philanthropic 23 fundraiser. The board must establish a public purpose for 24 organizing such a fundraiser. Such a fundraiser must carry 25 out a philanthropic purpose. The bill provides procedures and 26 requirements for a board to establish an account. The bill 27 provides limitations on eligible fundraisers and on the types 28 of moneys for which use of an account is permitted. 29 The bill defines “philanthropic purpose” as an educational, 30 charitable, humane, scientific, public health or welfare, 31 environmental, disaster relief, or other similar objective 32 defined in department of education rules. The philanthropic 33 purposes for which moneys in an account may be used shall be 34 limited to public purposes that are related to a student or 35 -2- LSB 5374SV (2) 85 je/sc 2/ 3

S.F. 2129 students enrolled in the school corporation and their families, 1 to the school corporation, to the community in which the 2 school corporation is located, or to a tax-exempt nonprofit 3 organization that is eligible to receive donations from a 4 school corporation in accordance with the bill and department 5 of education rules. 6 -3- LSB 5374SV (2) 85 je/sc 3/ 3