Perhaps it goes without saying that there's something not quite right when school boards have to create a nonprofit to achieve financial projects not otherwise in the school budget.  From my observation, most of these projects fall into two categories: sports and arts; and, the money raised is generally spent on facilities, supplies and trips.

Just today I caught wind of a story about a school system in a pretty affluent town that needs bucks for "press boxes" for the sports field.  One strategy to achieve this goal will include creating a nonprofit that can be a pass-through for the money raised.

The proliferation of nonprofits is a phenomenon that is a pain to many, including grant makers and regulators.  And there's no real reason.  Community Foundations and bank trust departments (the philanthropic section) can fill the role without creating all these one-shot organizations.  On the other hand, if a school is creating a sister institution, maybe this makes sense but let's stop first, and check-out the alternatives before using the nonprofit shell as a home for subsidizing the taxpayer.