Redbook: Frequently Asked Questions
Page 8 of 16
Last Revised 8/1/2015
4.) Can gate receipts deposited in the school activity fund bank account be used for structural
improvements? (Example: a fenced area for a group’s equipment.)
No, school activity funds cannot be expended for maintenance or renovation. (See item #3 under
“Disallowed Expenditures” on page 17 of the Redbook.)
Gate receipts deposited in the district bank account may be expended for anything meeting the
“educational purpose” test. See Definitions for more information regarding the difference between
school activity funds and district funds.
5.) Can school activity funds be used to purchase textbooks?
School activity funds may be used to purchase supplemental textbooks only if the funds are raised for
that purpose and they are to be used for a student group. Textbooks for general use or materials
required to implement the curriculum are operational expenses and must be purchased with district
funds. (See item #5 under “Fundraising” on page 7 of the Redbook.)
6.) Can school activity funds be used to purchase “coach’s cards”?
The Redbook prohibits the payment of an individual’s organization dues or fees that do not provide a
direct benefit to the student group. Also prohibited is the payment of extra compensation or bonuses
to district employees whether in the form of cash or gifts. Finally, the Redbook prohibits any
purchase that benefits the adult sponsors or district personnel and not the student group. (See item #7,
#8, and #9 under “Disallowed Expenditures” on page 17 of the Redbook.)
Coach’s cards which provide personal benefits to the adult sponsor or district employee such as
liability insurance coverage, disability insurance, free admission to events, or eligibility for awards
are prohibited from purchase with student activity funds unless they also provide a direct benefit to
students. If the card provides both personal benefits to adults and direct benefit to students, school
activity funds may be used for the portion of the card cost allocable to direct student benefit. Coach’s
cards shall not be considered for purchase for any non-coaching or retired staff.
The purchase of coach’s cards may be taxable to the recipient and required to be reported on the
employee’s W-2.
As with any purchase, the school or district shall pursue the most cost effective means to achieve
outcomes and procure goods and services. Retain documentation to support the use of school
activity funds if these situations apply.
7.) Can school activity funds be used to pay for uniforms for coaches or sponsors of student
groups?
School activity funds may be used to pay for a uniform for the coach/sponsor of a student group only
if the uniform is unique to that student activity, required to be the coach/sponsor, and is not suitable
for wear for any other purpose. Examples: baseball uniform, cleats. (See item #2, #7, and #9 under