For any school to operate effectively it must have funds. In
most countries education in schools is funded by the government,
but in some countries schools are heavily dependent on funds
obtained from other sources. In this unit we set out to identify
the wide range of sources of funds available to school managers.
Individual study time: 3 hours
By the end of this unit you should be able to:
identify different possible sources of school finance
understand and apply the appropriate knowledge and
skills to mobilise funds for your school.
Sources of funds
Sources of school funds can be classified into three major
categories namely: parents, government, and community groups.
Explain why parents contribute to the financing of your school
and list as many ways as you can in which they do so.
Contributions by parents may become necessary due to the inability
of government to meet even basic school financial needs. This
is so in many developing countries. But even in countries
where governments can afford to provide good buildings, qualified
teachers and a wide variety of resources, parents may still
wish to contribute money for even more resources, such as
transport and computers, and pay for educational visits, because
they want their children to enter adult life having obtained
the best possible education. In rather crude terms they want
them to be at the front of the queue for good jobs.
Your list of ways parents contribute probably included:
paying official tuition fees
paying PTA contributions
paying a specific fee for a building project such as
houses for teachers
parents may also give their time and skills to a range
of activities from buildng work to coaching at sports
paying teachers for additional lessons and coaching,
special duties, general welfare
paying for resources, such as textbooks, exercise books
and writing materials, school uniforms, desks and chairs,
library and sports contributions
paying for the children's welfare, such as transport
money, school meals, caution money.
(1) Are parents in your school generally willing or unwilling
to help financially?
(2) Is it always the same group of parents which is supportive?
Do some parents withhold help and, if so, why?
(3) What do you do in your school to encourage more parents
We should not assume that all parents are able to make the
same contributions, whether financial, in kind or in time,
to the school. Income levels in both urban and rural areas
are likely to vary considerably, as will the size of each
family. A sensitive approach is required by a school head,
first to differentiate between families, and second to make
provisions for children and parents who are facing difficulties
with payments. On the one hand you will need to set ambitious
targets to raise funds for your school, on the other you will
need to accept that not everyone will be able to contribute
to the same extent.
In encouraging parents to contribute you will need to target
your efforts on those who have the means but may not have
the will. To cater for the poorer families you may need to
set up a special support fund to help pay such things as the
fees of children who show special promise.
(1) Does the government allow you to raise money for your school?
What limits, if any, does it set on your fund raising activities?
(2) If you are allowed to raise money, list the money generating
programmes in your school.
In a few countries governments set severe restrictions on
the funds a school may raise, even though the governments
themselves are unable to provide for basic needs. In countries
where governments have more realistic policies some rules
and regulations will be set to ensure that there are limits
and that fund-raisers and fund-holders are held accountable.
A school may engage in several money generating programmes
to raise funds to help it run more effectively. Such programmes
workshops, such as craft work or carpentry
creative activities, such as concerts.
There is always a danger of trying to undertake too many
money generating activities at the same time. You should distinguish
regular fees or contributions required from all parents
voluntary collections for special, targeted fund raising
Consider and list the different government financial contributions
to your school.
Government assists schools financially in several different
ways. These may include:
paying grants to schools
paying teachers' salaries
assisting schools to establish money generating projects
by providing technical assistance including materials and
financing the construction and rehabilitation of school
The government also makes indirect contributions to each
school through, for example, training teachers, preparing
syllabuses and materials and providing inspectors.
How do local authorities help with school finances? Identify
different ways in which your local authority provides financial
assistance to your school.
In many countries primary education is a service transferred
to local authorities. Each authority is given the responsibility
for locating and opening schools, and for providing physical
structures, classroom facilities and office equipment to schools.
Funds are generated from locally raised revenues. Local authorities
often face difficulties in ensuring that all local taxes are
paid in full and on time, because they lack sufficient trained
staff and because taxpayers may not regard local government
with the same respect as central government.
Consider community groups in your area and identify different
ways in which they contribute financially to your school.
Community groups are often among the key sources of funds
to schools. They are mobilised to carry out given tasks by
leaders in the community, such as local chiefs. There are
many schools in developing countries that have been built
by community groups. Your findings might include:
mobilising community groups in development projects
community leaders playing the leading role in mobilising
the masses to participate more effectively in school projects
fund raising for individual schools in an area
involving community groups and former students in self-help
projects for the purpose of generating funds
levying education taxes on members of the community.
Within communities there may be individuals who also decide
to help one or more schools on a significant scale. Sometimes
business people wish to be seen as philanthropists and may
contribute in the same way as community groups. Such contributions
should be welcomed, but because of the idiosyncracies of individuals
a system of accountability needs to be enforced particularly
where business people operate schools for profit.
Consider the situation in your school and identify different
ways in which the facilities might be used to generate funds.
Through proper management, and if government regulations allow,
school plant may generate substantial funds. Ways of doing
this may include:
hiring school facilities to the community, for example,
halls, vehicles, playgrounds
engaging in money generating projects such as livestock
farming, running a canteen and operating workshops.
Identify and list different ways your pupils might be involved
in generating school funds.
Pupils may be good sources of school funds if they can see
the benefit both for themselves and their school. Developing
this resource depends on the good management of the school
head and staff. The following ways of involving your pupils
may be considered:
generating funds through such activities as agriculture,
keeping poultry, pigs and cattle, making crafts and bee keeping
fund raising activities, for example, music, dance,
drama, games and sports, exhibitions, charity walks and jumble
(1) Does your school belong to any Foundation?
(2) If so, identify different ways in which the Foundation body
assists your school.
Schools may be founded by religious or charitable bodies,
which are non-governmental organisations (NGOs). Each has
specific objectives in opening and operating the school which
usually involve the spiritual and moral well-being of the
children. These Foundation bodies give financial support to
their schools in various forms, such as land and buildings,
equipment and personnel. A trust fund may be established,
where money is invested in stocks and shares and the interest
generated provides operating funds for the school.
(1) Make a list of the methods you use to raise funds in your
(2) What additional ways might you introduce?
Which of the following did you include?
Sponsored walks: Where individuals are sponsored to
walk certain distances to raise funds for particular school
Trusts from charitable organisations: Where materials
and funds set aside by individuals or organisations are donated
to run a school programme.
Through fund raising representation: By this method
an influential and knowledgeable person is selected to visit
people or organisations that have been selected by the fund
raising committee to seek financial assistance. The representative
must be well conversant with the purpose to which the funds
will be used.
Fund raising agents: A group of people interested
in raising funds for the school, allocate themselves areas
of operation. Then each person approaches individuals for
financial assistance. The group must have a co-ordinator to
oversee collections and any other activities involved.
Minor fund raising: Fund raising in the form of a
fete, festival or entertainment organised for the purpose
of raising funds.
Raffles: The school acquires a few valuable articles,
such as a car, motorcycle and TV sets, ideslly through donations.
These articles are then given to the winners of a lottery.
If many tickets are sold through this method then quite large
sums may be raised.
In this unit we have considered the following major sources
of school funds: parents, government and community groups.
Fund raising may appear as a diversion from the main purpose
of schooling. It can be applied in an educative way if the
pupils are involved in each aspect of an event and topics
for language, mathematics and crafts can easily be identified.
Given that many schools are seriously short of funds, no school
head can afford not to be involved in such work. 'Nothing
ventured, nothing gained' should be the motto of all school
heads. School heads, as managers/planners, should be encouraged
to explore all the possible and feasible sources of funds
for the benefit of their schools.