Why Schools Are Banning Candy Fundraisers and What to Do Next

Blog Summary: With stricter school nutrition standards and state-level laws banning certain ingredients, candy fundraisers are under pressure. These changes have made it harder for schools to sell candy on campus, affecting concession stands, student-to-student sales, and overall fundraising revenue. We break down the impact, the reasons behind the bans, and how your school can adapt with proven, compliant alternatives that still excite students and bring in funds.

That candy bar sale that used to bring in thousands? It might not even be allowed at your school anymore.

Across the country, school candy fundraisers are being pushed out by new health regulations, updated federal nutrition standards, and stricter state laws. What was once a quick and profitable way for students to raise funds, selling chocolate, lollipops, and sour gummies, is no longer considered an acceptable option in many districts.

This shift is hitting school groups hard. PTA fundraisers, cheer fundraisers, concession stands, and even school stores are all being forced to rethink how they raise money.

Let's break down why this is happening, what it means for your fundraising strategy, and how you can make the pivot without losing momentum.

Key Highlights

Smart Snack guidelines limit the types of food that can be sold to students on school grounds.
State laws now ban synthetic dyes and additives in school food products.
Candy fundraisers often don't meet updated school food policies.
Students are losing access to on-campus peer-to-peer sales.
Fundraising companies are adapting with Smart Snack-compliant snacks.
Non-food fundraisers are becoming more popular and practical.
Schools must rethink their strategy to keep fundraisers successful and compliant.

What's Really Behind the Ban on Candy Fundraisers?

Let's start with the root of the issue: student health.

Federal agencies and state legislatures are making it clear that childhood nutrition is a top priority. That means schools are being asked to limit student access to sugary, processed foods, especially during school hours.

Federal Smart Snack Standards

Since 2014, the USDA has enforced Smart Snack in School standards, which set limits on calories, sugar, fat, and sodium for any food sold to students on campus during the school day.

Beginning July 1, 2025, the USDA implemented even stricter guidelines targeting added sugars, especially in popular items like flavored milk, cereal, and yogurt. While candy isn't specifically named in these standards, it rarely meets the nutrition criteria and is therefore restricted.

Smart Snack rules apply to:

Fundraisers held during the school day
Concession stands
School stores
Student-to-student sales
Items sold in clubs, sports teams, or PTA events on school grounds

These rules mean that selling candy bars in the hallway between classes or hosting a bake sale at lunch could now violate federal guidelines.

State Laws Are Raising the Bar Even Higher

While federal rules apply nationwide, some states are going even further, targeting specific ingredients often found in candy, like synthetic food dyes and chemical additives.

Key Examples:

Utah passed HB0350, which will ban foods containing artificial dyes like Red No. 40, Yellow No. 5 and 6, and Titanium Dioxide from being served or sold in public schools beginning in the 2026–2027 school year.
California is actively phasing out ultra-processed foods and artificial dyes from public school menus, with full implementation targeted for 2027.
West Virginia already bans synthetic dyes in school meal programs and is expanding the law to include school-based food sales and even broader retail restrictions by 2028.

These laws don't just target candy sold by schools; they redefine what is acceptable for any food item served or sold on campus, including products used in fundraisers.

Why It Matters to Fundraising

The truth is, candy fundraisers have been the backbone of many student fundraising efforts. They're simple, affordable, and effective, especially for student-to-student sales.

Here's why schools are feeling the impact:

1. Loss of Peer-to-Peer Sales

Selling candy to classmates has always been one of the most profitable strategies for students. Now that most candy items can't be sold on school property, students lose a key sales channel.

2. Bake Sales and Concessions Are Also Affected

Popular concession items like brownies, cookies, and cupcakes often exceed Smart Snack limits on sugar or calories. Many schools have banned these items from school events, especially during instructional hours.

3. Students Relying on Door-to-Door Sales

Some schools have turned to off-campus sales. But this introduces safety risks, especially when students go door-to-door without adult supervision. It also places a heavier burden on families to help sell products.

4. Decreased Fundraising Revenue

Without access to candy-based products, some groups are seeing a noticeable dip in fundraising profits, especially if they haven't switched to a new model.

Safety Concerns Beyond Sugar

It's not just nutrition that's driving these changes. Schools are also focusing on safety, both in the ingredients used and in how students are asked to sell products.

Ingredient Transparency

Some researchers have linked artificial dyes like Red 40 and Yellow 5 to behavioral concerns in children. While more studies are needed, some states are taking a cautious approach by removing these additives from school menus altogether.

Student Safety

Door-to-door selling can put students at risk, especially in unfamiliar neighborhoods. Schools want to avoid encouraging unsupervised sales, making in-school fundraising even more critical, yet harder under new restrictions.

The Bigger Picture Shows Changing Attitudes About Food

Beyond laws and policies, there's a broader cultural shift happening. Parents, educators, and health officials are increasingly viewing candy as a poor fit for school-based fundraising. The message is clear: schools should model healthy choices.

Related public health policies reinforce this shift. For example:

SNAP Restrictions

Several states, including West Virginia, Utah, and Indiana, have received USDA waivers allowing them to prohibit the use of SNAP (EBT) benefits to purchase soda. While not directly tied to schools, it reflects policymakers' crackdown on high-sugar foods.

These changes are pushing schools to rethink how they raise funds and which products they should promote.

How Fundraising Companies Are Responding

Some of the most trusted fundraising vendors are already adjusting their product lines to meet Smart Snack requirements and comply with state-level ingredient bans.

Examples Include:

Van Wyk Confections now offers healthier pretzel rods with reduced sugar and salt, specifically designed to meet school fundraising compliance requirements.
Jack Link's has launched lower-sodium versions of their beef jerky, making them viable options for on-campus sales.
Smart snack-approved popcorn fundraiser and baked snack options are replacing candy in many school fundraising catalogs.

These moves are helping schools keep food-based fundraising alive, without risking policy violations.

Alternatives That Still Raise Real Funds

If your group has relied heavily on candy bar fundraisers, this might feel like a major disruption. But it's also an opportunity to try new formats that could be even more profitable and easier to manage.

Compliant Food-Based Fundraisers

Pretzels
Low-sodium jerky
Whole grain popcorn
Trail mix
Granola bars

These can be sold during the school day, as long as they meet Smart Snack criteria.

Non-Food Fundraisers

Coupon book sales
School spirit wear
Online fundraising campaigns
Read-a-thons or walk-a-thons
Thrifting or uniform resale events
Custom calendars, mugs, or tote bags

These options offer more flexibility, fewer restrictions, and fewer health concerns, making them ideal for schools adjusting to the new environment.

What Schools Should Do Now

If you're navigating these changes for your next PTA fundraiser, cheer fundraiser, or youth group campaign, here are some practical steps:

1. Know Your Local Guidelines

Understand both federal Smart Snack rules and any additional state or district restrictions. Some states provide a list of pre-approved products or a compliance calculator.

2. Pick Compliant Vendors

Work with fundraising partners who can verify their products meet current standards, which will save time, ensure compliance, and keep you focused on selling.

3. Focus on Off-Hour Sales When Needed

If you still want to include candy, structure your fundraiser to occur off-campus and outside school hours. But make sure parents are on board.

4. Build Fundraising into Your School Culture

Get students excited about healthier options or creative non-food fundraisers by tying them to school spirit, class competitions, or shared goals.

5. Promote Digitally

Use email, social media, and QR codes to increase reach and reduce the need for door-to-door selling.

FAQs

1. Is candy completely banned in schools?
Not always, but it can't be sold to students during school hours if it doesn't meet Smart Snack standards. Some states are also banning certain candy ingredients. Exceptions may apply for classroom celebrations or off-campus events, depending on district guidelines.

2. Can we still sell candy after school?
Yes, in many districts, but check local policy. Some states or schools extend restrictions to after-school events. Athletic events, weekend fundraisers, and community nights often have more flexibility.

3. What's the best alternative to candy fundraisers?
Healthier snacks like pretzels and jerky are popular. Non-food fundraisers, such as spirit wear or read-a-thons, are also highly successful. These options often generate higher profits with fewer compliance concerns.

4. How can we ensure our fundraiser complies with the rules?
Ask your vendor for a product compliance list or use the USDA Smart Snack calculator. Getting written confirmation upfront can prevent issues with school administrators later.

5. What if families push back on non-candy options?
Communicate the health reasons behind the shift. When families understand it's about policy, not preference, they're more likely to support new ideas. Sharing success stories from other schools can also help build confidence and buy-in.

Time to Rethink and Rebuild Fundraising

The fundraising landscape has changed, but your goals haven't. Whether you're part of a PTA, school, church youth group, daycare, or team, you can still run successful fundraisers that meet your budget and respect today's food standards.

You just need the right tools, the right products, and a plan built for now, not the way things used to be.

Ready to Start Your Next Fundraiser?

We offer compliant, student-approved fundraising products designed for today's regulations and tomorrow's success. Whether you're replacing candy fundraisers or launching a new event, we'll help you build a program that works.

Check out our fundraising solutions today and get started.

Let's raise more, together, with purpose and compliance in mind.

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.