How Does a School Get Paid After a Fundraiser?

Most fundraising questions are about how much a group can raise. Another question matters just as much to the person running the campaign: how and when does the school actually get the money? The answer depends on how your fundraiser is set up, because each model moves money differently.

This guide explains how direct-sale, brochure, and online fundraisers settle up, with a worked example for each, a simple money timeline, and what to do at your own school. Big Fundraising Ideas has supported school fundraising programs since 1999, and any of the programs described here have no upfront cost. For help accepting money from buyers, see school fundraiser payment processing.

The Short Answer by Fundraiser Type

Timing and terms come from the product and program pages and should be confirmed for your program.

See direct sale fundraisers, brochure fundraisers, and online fundraisers for how each works.

Direct Sale: You Keep What You Collect Minus the Invoice

The popcorn, candy bar, and meat stick product pages describe the same payment process.

• No Upfront Payment for Public Schools: A purchase order lets a public school order without paying up front. A purchase order is a legally binding document between your group and the vendor.
• Payment Due Within 15 Days: The invoice is due within 15 days of receiving the product, giving you time to collect payment and pay.
• Other Ways to Pay: The pages also list credit card (VISA, Mastercard, American Express, Discover, and PayPal) and direct deposit.
• The Rest is Your Profit: Whatever you collect above the invoice stays with the group.
• Unsold Product is Not Accepted Back: You owe the invoice for every case you order.

Here is an example using the $3 Premium Variety popcorn. A group of 27 participants orders 7 cases (840 bags). At the 1-to-9-case price, the invoice is 7 x $216 = $1,512. If every bag sells at $3, the group collects 7 x $360 = $2,520. The group pays the $1,512 invoice and keeps $1,008.

An illustration using the popcorn example from the order-size guide. Results depend on how many bags actually sell.

Brochure Fundraisers: Deposit, Submit, Then Pay the Invoice

The Otis Spunkmeyer cookie dough fundraiser page lays out the process in nine steps. In short:

1. Each participant receives a brochure, an order form, and a money collection envelope.
2. Participants gather orders from neighbors, family, and friends and collect payment.
3. Participants turn in order forms and money envelopes.
4. The group deposits the brochure money in its account and submits the order forms for processing.
5. The group receives a sales report.
6. The vendor emails an invoice for what the group owes, and the group keeps the rest as profit.
7. The vendor packs and ships the order to the group about 3 to 4 weeks after receiving the order forms.
8. Participants deliver the merchandise to buyers.

Here is an example using the page's own figures. A group of 60 participants each sell 10 items at about $22, for $13,200 in sales. At the 40% profit rate, the group's profit is $5,280, and the invoice for what it owes would be about $7,920 before any fees.

Fees can change the invoice. The Otis page says a supply fee can be added when average sales per enrolled participant are low, and that a shipping charge of $1.00 per product applies if a group sells fewer than 350 frozen food products. Late orders can also add shipping fees. Check the page for the current terms.

For the full profit math, see how much a school can make from an Otis Spunkmeyer fundraiser. For the timeline from order to delivery, see the fundraising supply timeline.

Online Fundraisers: The Vendor Collects, and You Get a Payment

• Standalone Online Stores: The online fundraiser page says the vendor collects the money, then issues a consolidated profit payment after the store closes, typically within 10 to 14 business days. One program page says within 10 business days, so confirm the timing for your program.
• Online Sales Inside a Brochure Fundraiser: On the Otis fundraiser, the vendor credits your online profit toward your brochure invoice. If your online profit exceeds the invoice, you receive a check for the difference.
• When the Check Goes Out: The page says it is processed 24 hours after the store closes and the order is processed if nothing ships to your group, or five days after the shipment leaves the warehouse if something does, and printed by the following Tuesday.
• Donations: In the online store, your group receives 70% of the profit from donations, and that profit is applied to your online credit.
• No Money Handling: Because supporters pay online, the group does not collect or count cash for online sales.

See online fundraisers and the online popcorn fundraiser to learn more.

A Simple Money Timeline for a Direct-Sale Fundraiser

A planning example. Confirm your own payment terms and your school's deposit rules.

Where the Money Goes at Your School

• Follow Your School's Deposit Procedures: Many schools and districts have rules about who may hold money, how quickly it must be deposited, and which account it goes into.
• Count with Two Adults: Count together, match the count to the sign-out sheet or order forms, and keep the record.
• Keep Receipts and Records: Keep the invoice, the sales report, deposit slips, and the tracking sheet. See the fundraiser sales tracking sheet.
• Expect a Recap: Many schools ask for a summary of what was raised and spent. The fundraiser expense worksheet and calculator can help.
• Ask the Business Office: Requirements vary, so ask your principal or school business office. This is general information, not legal or tax advice.

For more on collecting and handling money, see how to collect fundraising money promptly, accept fundraiser checks, and what a school fundraiser's money pays for.

What Can Reduce What the School Keeps

For leftover ideas, see what to do with leftover products. For profit percentages, see school fundraiser profit percentage tips.

Frequently Asked Questions About Getting Paid After a Fundraiser

How does a school get paid after a fundraiser?

It depends on the fundraiser type. In a direct-sale fundraiser, the group collects money from supporters, pays the vendor's invoice, and keeps the rest. In a brochure fundraiser, the group deposits the money it collects, submits its order forms, receives an invoice for what it owes, and keeps the rest as profit. In an online fundraiser, the vendor collects the money at checkout and sends the group a profit check after the store closes.

When do we pay the fundraising company?

For the popcorn, candy bar, and meat stick fundraisers, payment is due within 15 days of receiving the product, and public schools can order with a purchase order. For a brochure fundraiser, the vendor emails an invoice after your orders are processed.

How much of the money does the school keep?

The school keeps the difference between what it collects and what it owes the vendor. On the $3 Premium Variety popcorn, that is 40% to 60% of retail sales, depending on how many cases you order. The Otis Spunkmeyer cookie dough fundraiser lists 40% on brochure and online sales.

What happens to the money after the fundraiser ends?

For a direct-sale or brochure fundraiser, adults count and record the money, deposit it according to your school's procedures, and pay the vendor's invoice. The rest is the group's profit. For an online fundraiser, the vendor sends a profit check after the store closes.

Who handles the money in a school fundraiser?

Adults should handle and count the money, ideally in pairs, and match it to a sign-out sheet or order form. Follow your school or district's rules for depositing and recording fundraiser funds.

How long does an online fundraiser take to pay out?

The Big Fundraising Ideas online fundraisers page says a consolidated profit check is typically issued within 10 to 14 business days after the store closes, and one program page says within 10 business days. Confirm the timing for your program when you start. For an Otis Spunkmeyer online store, the profit is credited against your brochure invoice, and a check is issued for any excess.

Can online profit offset my brochure invoice?

Yes, on the Otis Spunkmeyer cookie dough fundraiser. The vendor credits your online profit toward your brochure sales invoice, and if your online profit exceeds the invoice, you receive a check for the difference.

Do we have to report fundraiser profits to the school?

Many schools and districts require a record of what was raised and spent, and some ask for a recap or summary form. Requirements differ, so ask your principal or school business office. This is general information, not legal or tax advice.

What can reduce what the school keeps?

Fees and unsold product. Some programs add fees to the invoice, such as a supply fee or a per-product shipping fee on brochure sales when sales are low. On direct-sale products, unsold product cannot be returned, so you owe the invoice for every case ordered. Check each program's terms.

Author Bio

Clay Boggess has been designing fundraising programs for schools and various nonprofit organizations throughout the US since 1999. He’s helped administrators, teachers, and outside support entities such as PTAs and PTOs raise millions of dollars. Clay is an owner and partner at Big Fundraising Ideas.