Short answer: A capital project builds or buys something that lasts years, on property the district usually owns, so the district has to approve it before anyone asks for money. Agree in writing who buys, who builds and who maintains it; confirm whether bidding or wage rules apply; and follow the district's gift and naming policies. Raise lead gifts and grants first, then go public with sponsors, a brick campaign and a family event. For a bus, buy one certified to federal school bus standards.
This guide is part of fundraising for school projects. Most school fundraising pays for things that are used up: field trips, supplies, events. A capital project is different. A shade structure, a renovated library, an outdoor classroom, a scoreboard or a bus lasts for years, costs far more, and sits on or moves through district property. That changes who decides, how long it takes and how the money should be raised. The bus section near the end is written for private schools, charter schools and rural programs that buy their own vehicles; district-run routes are a district budget matter.
Approval comes before the first ask
School buildings and grounds belong to the district, and districts decide what is built on them. A parent group that raises $40,000 for a shade structure before facilities staff have seen the plan can end up holding money for a project that can't be built in that spot, or at that price. Get approval first, then announce.
District policies set out who approves what. As one example, the donations policy of Granite School District in Utah, which the Utah State Board of Education publishes among its model policies, requires the superintendent's approval for gifts and solicitation campaigns over $10,000, including capital improvements, before the gift is accepted, and approval from the Board of Education over $50,000. It also says donations become the district's exclusive property on delivery. Your district's thresholds will differ, but the pattern is common: the bigger the project, the higher the approval goes.
- Facilities review: location, utilities, drainage, structural engineering for anything that holds weight or shade, and how it fits the district's long-term plans for the site.
- Permits and codes: building permits, fire code and accessibility. A shade structure or a renovated room has to meet the same codes as any district project.
- Procurement and wages: many states require public entities to bid construction contracts above a set amount, and many apply prevailing wage rules to public works. Whether those rules reach a project a parent group pays for depends on state law and on who signs the contract. Ask the district's facilities or business office before you collect quotes.
- Maintenance: who inspects, repairs and eventually replaces it. A district may decline a gift that brings maintenance costs it can't carry.
- Insurance: who carries the risk during construction and afterwards.
The district approval guide shows how to write the request. For a capital project, add a site sketch, the vendor quotes you have, a draft maintenance plan and the proposed recognition.
Who signs the contract
There are two ways to pay for anything on school property: give the money to the district, or buy the item and donate it. The projects guide compares the two and explains why donated items become district property. For construction, the choice turns on who signs the contract with the builder:
- If the district signs, bidding, prevailing wage, permits and code compliance run through the district's usual process, and volunteers carry little risk. It can be slower, because it follows the district's purchasing calendar.
- If the parent group or foundation signs, the group is the customer if anything goes wrong, and it has to make sure the project meets whatever the district and state law require. That suits movable items (furniture, equipment, portable shade, technology), not anything installed or wired.
For construction, giving the money to the district is usually safer. Put it in a short written agreement: the amount, the project, the timeline, what happens to the money if the project changes, and the recognition the district has agreed to.
How a capital campaign runs
A capital campaign raises a large, fixed sum for a defined project over months or years. It runs in phases, and the order matters.
- Plan and approve
Approval, quotes, the written agreement, a budget that includes a contingency and the campaign's own costs. Use the budget worksheet.
- The quiet phase
Ask the people and organizations most able to give, privately and in person: a few families, local businesses, a community foundation, service clubs. A grant can anchor this phase; the school grants guide explains why the district is usually the right applicant for anything installed on school property.
- The public phase
Launch with the lead gifts announced, ideally with half or more of the goal already committed. Then ask every family, with a range of ways to give. A brick and paver campaign suits a walkway, plaza or garden, because the recognition becomes part of the project. The rest of the public phase uses the usual mix of a pledge event, sponsors and matching gifts described in combining fundraisers, grants and sponsors. Show progress with a fundraising thermometer.
- Build
Share progress photos and a realistic date. Delays are normal in construction; silence about them costs trust.
- Recognize and steward
A dedication, the recognition promised, and a report on what the money built, using the results and thank-you guide.
A school or district foundation is often a better home for a large campaign than a PTO, because it can take larger gifts and run a multi-year effort; starting a school foundation covers how one is set up. Granite's policy, for instance, encourages large gifts to go through the district's education foundation.
Gift acceptance and restricted money
Money raised for a named project is restricted to that purpose, so every appeal should say what happens if the project changes or comes in under budget; the projects guide covers restricted money and fallback wording. A capital campaign raises enough, over long enough, that the question will come up, which is why the group running it needs a written policy.
A gift acceptance policy answers the hard questions before a donor asks them. A parent group or foundation running a capital campaign should adopt one.
This page describes common practice and one district's policy; it is not legal advice. Bidding, prevailing wage, permit and gift rules vary by state and district. Before collecting quotes or making promises to donors, ask the district's facilities and business offices, and have your treasurer and a tax professional review receipt wording and how restricted gifts are recorded.
Naming and recognition
Naming is one of the strongest reasons a lead donor gives, and one of the easiest promises to get wrong. Most districts reserve the naming of buildings, rooms and structures to the school board; Granite's policy, for example, reserves to the board "approval for the naming of buildings, structures, rooms, or other district facilities." Never promise a name the board hasn't approved.
- Get the recognition approved with the project, including wording, size and placement of any plaque.
- Use tiers that match real gift levels: a plaque for the lead gift, names on a donor board for the next level, a listing in the dedication program for everyone.
- Set a term. Some districts name a space for a set number of years or for the life of the structure. Say which in writing.
- Recognize businesses, don't advertise them. Granite's policy says recognition notices must not be an advertisement for or endorsement of the business. The business brick section shows the difference with examples, and the sponsorship guide covers how to ask.
Raising money for a school bus
Private schools, small charter schools and rural programs sometimes raise money for a bus or an activity vehicle. Start with your state education agency's pupil transportation office: states set the rules for vehicles that carry students, including driver licensing and inspections, and that office can tell you what your school may buy and operate. Federal safety law adds a clear answer about new vehicles.
Federal motor vehicle safety regulations (49 CFR 571.3) define a bus as a vehicle designed to carry more than 10 persons, and a school bus as a bus sold for purposes that include carrying students to and from school or related events. In a 2000 interpretation letter, NHTSA's chief counsel applied those definitions, explaining that anyone selling or leasing a new vehicle must sell one that meets all applicable federal safety standards. When a new van or bus is likely to be used significantly to transport students, the dealer must sell one that meets the federal school bus standards, which a standard 15-passenger van doesn't meet. The same letter notes that federal law governs the manufacture and sale of new vehicles, not how a school uses them; each state sets its own rules on use, and NHTSA "strongly recommend[s]" that all buses used to transport school children be certified as meeting school bus standards. It also warned that using non-compliant vans for students could create liability in a crash. NHTSA has repeated the same position in later letters, including one in 2006.
For a vehicle used only for trips and activities, NHTSA also recognizes a multifunction school activity bus: a school bus that meets the school bus standards except the ones requiring flashing lights and stop arms. The regulations define it as a school bus whose purposes don't include carrying students between home and school or school bus stops, and a 2013 NHTSA interpretation letter explains that a dealer may sell one only if it won't be used on those routes; for route service, a dealer must sell a full school bus.
Before you set a goal, find out:
- The true yearly cost: insurance, fuel, maintenance, inspections, storage and drivers. A donated or fundraised bus with no operating budget becomes a parked bus.
- Who will own and title it: the school or district, not a parent group, in most cases.
- Whether a used certified school bus or chartered transport would meet the need for less.
Once the school has chosen the vehicle, a bus campaign works like any capital campaign: a lead sponsor (often recognized on a sign inside the bus, if the district allows it), a grant from a local foundation, and a family event.
Why capital projects stall
Most stalled projects broke one of the rules above: money raised before approval, names promised before the board agreed, or volunteers signing a construction contract. Two other causes are easy to miss. Quotes often leave out site work, permits, engineering, delivery and installation, which can rival the cost of the item itself, so ask for an all-in quote and add a contingency. And a campaign that goes public too early and sits at 15 percent for months loses momentum; secure the lead gifts first.
Sources
- Donations policy (Article V.C.8), Granite School District, published among model policies, Utah State Board of Education (accessed 2026-10-30)
- Interpretation letter on vans used to transport students (March 30, 2000), National Highway Traffic Safety Administration (accessed 2026-10-30)
- 571.3: Multifunction school activity buses, Georgia Department of Public Health (Feb. 28, 2013), National Highway Traffic Safety Administration (accessed 2026-10-30)
- 49 CFR 571.3 Definitions (Federal Motor Vehicle Safety Standards, Oct. 1, 2023 edition), U.S. Government Publishing Office (accessed 2026-10-30)
Frequently asked questions
Can a PTO pay for a school renovation?
Yes, with the district's approval, and usually by giving the money to the district so the district contracts for the work. School buildings belong to the district, which decides what is built, who builds it, and which bidding, wage and code rules apply. Agree in writing on the amount, the project, the timeline and what happens to the money if plans change.
How do schools raise money for a new bus?
Usually through a capital campaign: a lead sponsor, a local foundation grant and a family event, after the school has chosen a vehicle and budgeted for insurance, fuel, maintenance and drivers. NHTSA has said a new vehicle sold for significant use transporting students must meet federal school bus standards, and it strongly recommends certified school buses for carrying children.
Can we use a 15-passenger van instead of a bus?
NHTSA's chief counsel has said a dealer can't sell a new 15-passenger van to a school for significant use transporting students; it must sell a vehicle meeting school bus standards. Federal law doesn't regulate how a school uses a vehicle it already has, so state rules apply, but NHTSA strongly recommends certified school buses and warned of liability risk with non-compliant vans. Ask your state's pupil transportation office.
Can a donor get a building or room named after them?
Only if the school board approves it. Most districts reserve naming of buildings, rooms and structures to the board, and some name spaces for a set term. Get the naming approved with the project, put the wording and term in writing, and never promise a name before approval.
What happens if we raise more than the project costs?
That depends on what you told donors. Money given for a named project is restricted to that purpose, so state an alternative use in every appeal, such as "other outdoor learning projects at the school," and record restricted gifts separately. Ask your treasurer or an accountant how to handle a surplus if your appeal didn't say.