SF 2129 (LSB 5374SV (2) 85)

SENATE FILE 2129

BY  COMMITTEE ON EDUCATION

(SUCCESSOR TO SF 2006)

A BILL FOR

An Act authorizing the establishment of a philanthropy account within an agency fund established by a school corporation.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 298A.13, Code 2014, is amended to read as follows:
   298A.13  Trust, permanent, or agency funds.
   1.  Trust, permanent, or agency funds shall be established by any school corporation to account for gifts it receives to be used for a particular purpose or to account for money and property received and administered by the district as trustee or custodian or in the capacity of an agent. Boards may establish trust, permanent, or agency funds as necessary.
   2.  The board of directors of a school corporation may establish a philanthropy account within an agency fund to account for proceeds of a philanthropic fundraiser approved by the board. To establish a philanthropy account, the board shall establish the public purpose for organizing the fundraiser and shall, by resolution, authorize the fundraiser for the specific philanthropic purpose and for a specific time period. The board shall ensure that all materials relating to the fundraiser clearly identify the philanthropic purpose for which the school corporation will use the excess of the proceeds raised over the costs of the fundraiser. Fundraisers shall not involve professional or commercial fundraisers and shall not include solicitation of grants. The board may establish more than one philanthropy account but shall ensure that each account separately identifies the assets and liabilities related to a separate philanthropic purpose approved by the board. A philanthropy account shall consist only of voluntary donations raised by the students or school corporation employees for a specified philanthropic purpose approved by the board. A school corporation shall provide, upon request and without cost to the requesting party, financial disclosure information concerning contributions received and disbursements for a philanthropy account that is the subject of the request. For purposes of this section, “philanthropic purpose” means an educational, charitable, humane, scientific, public health or welfare, environmental, disaster relief, or other similar objective defined in department of education rules. The philanthropic purposes for which moneys in an account may be used shall be limited to public purposes that are related to a student or students enrolled in the school corporation and their families, to the school corporation, to the community in which the school corporation is located, or to a nonprofit organization operated exclusively for the purposes set forth in section 501(c)(3) of the Internal Revenue Code and that are eligible to receive donations from a school corporation in accordance with this subsection and department of education rules. However, such a nonprofit organization shall not be a political, religious, athletic, postsecondary, or similar organization. The school corporation shall obtain written permission from a nonprofit organization prior to using its name in materials relating to the fundraiser.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill authorizes the board of directors of a school corporation to establish a philanthropy account within a school district’s agency fund established under Code section 298A.13 to account for proceeds of a board-approved philanthropic fundraiser. The board must establish a public purpose for organizing such a fundraiser. Such a fundraiser must carry out a philanthropic purpose. The bill provides procedures and requirements for a board to establish an account. The bill provides limitations on eligible fundraisers and on the types of moneys for which use of an account is permitted.
   The bill defines “philanthropic purpose” as an educational, charitable, humane, scientific, public health or welfare, environmental, disaster relief, or other similar objective defined in department of education rules. The philanthropic purposes for which moneys in an account may be used shall be limited to public purposes that are related to a student or students enrolled in the school corporation and their families, to the school corporation, to the community in which the school corporation is located, or to a tax-exempt nonprofit organization that is eligible to receive donations from a school corporation in accordance with the bill and department of education rules.