These procedures relate to the Commercial arrangements, sponsorship and donations policy.

Principals, managers and project leads:

• ensure their school's or directorate’s commercial arrangements comply with this policy, they have assessed risk and declared and documented any conflicts of interest. Refer to Conflicts of interest (staff only)
• approve commercial arrangements for their school or directorate in line with the department’s financial delegations (staff only)
• approve contributions and donations from the school’s parents and citizens association
• consult with Business Engagement, if they become aware that an external organisation is negotiating similar commercial arrangements with multiple schools and/or directorates
• consult with Business Engagement when the value of a sponsorship or commercial arrangement contract exceeds $50,000 (cash or value-in-kind)
• record value-in-kind sponsorships valued at more than $5,000 in the sponsorship register (where no money is received and no record exists in SAP)
• suggest relevant staff complete the MyPL Sponsorship Risk: Detective Training module.

Directors, educational leadership:

• approve commercial arrangements involving a group of schools in a principal network
• consult with Business Engagement when the value of the sponsorship or commercial arrangement contract exceeds $50,000 (cash or value-in-kind).

Procurement staff:

• advise on commercial arrangements that are greater than $50,000 in value (cash or value-in-kind) with an existing or pending supplier (including those on a prequalification scheme).

Business Engagement staff:

• advise, review and co-sign all commercial arrangements greater than $50,000 in value (cash or value-in-kind)
• advise on all statewide activity and other commercial arrangements on request
• monitor sponsorship transactions in SAP to ensure sponsors are suitable
• refer commercial arrangements to Procurement as required.

Legal staff:

• advise when a sponsor, school or directorate proposes any substantial change to a department agreement template.

These can include:

• sponsor acknowledgment and logo recognition
• invitations to attend functions such as concerts, dinners, sporting events, exhibitions, dance or drama performances, presentation nights, or competition finals with school and department staff
• the opportunity to address the audience (with department’s prior approval of the text) and/or present awards at these events
• acknowledgement at major events in a designated sponsor section in school or program communication channels. For example:

‘Thank you to [sponsor name] for its support of the school music concert. Its contribution has enabled the school to purchase a range of new instruments, making it possible for more students to participate in our music program.’

• a letter of appreciation or certificate recognising the sponsor’s designation or level of support (a template certificate of appreciation is available on the Communication and engagement Resources page [staff only])
• editorial material or a foreword included in publications associated with a program, event, or initiative – in line with the department’s content guidelines with no endorsement
• a branded award provided by the sponsor such as ‘The [sponsor name] creativity award’
• the opportunity for sponsors to provide branded token gifts (with the department’s prior approval and which comply with the Gifts, benefits, and hospitality procedures) that are distributed at department events, programs and initiatives to participating staff, teachers, and students
• the opportunity to distribute promotional flyers, products, and advertising material at department events, programs and initiatives to staff, teachers, and participants over 18 years
• use of a school’s premises, such as advertising on a school fence, or provision of a venue. This type of benefit must be processed according to the Sharing of school facilities policy.

These include the following:

• Endorsement – do not offer or agree to endorse a sponsor, or a sponsor’s product or service. Staff must advise value-in-kind sponsors they do not have the right to claim or imply that the department or school endorses their product or service.
• School rewards programs – schools must not agree to receive financial support for recommending parents, staff and/or students use a particular product or service provider. Businesses may choose to operate a school rewards program at their discretion and make donations to schools. It must be clear that a donation does not require anything in return. Staff must provide a receipt for the donation.
• Kickbacks, spotter’s fees and finder’s fees – staff must not receive financial remuneration for recommending, endorsing, or directing business to a sponsor or supplier. For example, a school enters an arrangement to endorse, or recommend a real estate agent in exchange for a $500 finder’s fee to the school.
• First right of refusal – staff cannot offer a sponsor first right of refusal when a contract finishes. They must undertake an open, fair and transparent process to seek further sponsorship. Refer to section section 4. Sponsorship and collaborations.
• Naming rights – staff cannot give a sponsor naming rights to brand or replace the title of a department or school program. For example, ‘The [sponsor name] Sports Carnival’ or ‘The [sponsor name] Education Week.’
• Promotional activities to underage participants – The department strongly discourages schools and directorates from distributing promotional flyers, products and advertising material in schools, or at department events, programs and initiatives, to underage participants. For special conditions, refer to section 3.2 Manage a promotional activity or a request to film on school grounds. Refer to Controversial issues in schools policy for more information.
• Designation – staff cannot offer a sponsor the designation ‘School Sponsor’ or ‘Department Sponsor.’ Sponsorship may only be sought for specific programs and initiatives.

Commercial arrangements must not:

• imply, infer, or involve the endorsement of a particular company, product, or service by the department, its employees, or students
• place any pressure on students, parents, or department employees to purchase and use any goods and services
• promote an organisation’s products or services as superior or the best value or include directives to support the sponsor.

Acceptance and/or use of an organisation’s product or service must not be a condition for student or teacher participation in a commercial arrangement, sponsored program, event, or initiative.

This restriction on endorsement also applies to businesses that deliver services on school premises, such as allied health providers and before and after school care services. School staff must not endorse or promote a business regardless of whether it operates on the school’s grounds or not.

Value-in-kind sponsorship contributions and donations may be unsuitable if the goods or services:

• are poor quality, out of date or obsolete
• will cost the department money to maintain, continue, or dispose of
• are covered by a mandatory procurement contract – refer to section 2.2 of the Procurement procedure
• present security risks (for example devices or digital services that are not compatible with the department’s security protocols)
• undermine or compromise an existing procurement arrangement
• do not meet the Education Facilities Standards and Guidelines.

For advice contact Procurement (refer to Contacts section).

Check:

• they are registered with the Australian Charities and Not-for-profits Commission (ACNC) on the Australian Government - Australian Business Register
• confirm the organisation’s charity tax concession status and deductible gift recipient status
• the charity’s financial reporting is up to date on the Australian Charities and Not-for-profits Commission webpage
• alignment with the department’s Values in NSW public schools policy.

Examples may include:

• the type of products or services it markets and their impact on the health of consumers, the community and the environment
• criminal conduct, allegations, court action
• the characteristics of close associates of the organisation (such as its parent company, subsidiaries, board members, directors and officers)
• privacy policy
• marketing methods
• its public image
• For more information, refer to Controversial issues in schools policy.

A National Rugby League team (NRL team) may have unsuitable sponsors (for example, an alcohol vendor). It is appropriate for students to receive coaching and mentoring from the team if their sponsors have no influence or input into activities with the school.

The Australian War Memorial may have unsuitable sponsors (for example, weapons manufacturers) but it is an appropriate place for students to attend regardless of this affiliation.

Obligations might be:

• minor, for example, a logo acknowledgement in a school newsletter
• major, for example, arranging for filming, photography or an event on school premises.

If the obligations are significant, principals need to determine whether the school should be an additional party to the agreement, or the direct recipient of the sponsorship.

Advertising versus acknowledgement on the school perimeter

P&C sponsorship arrangements:

• must not include advertising on the school perimeter. A school must have an advertising agreement for any outward facing advertising (refer to Sharing of school facilities procedures section 1.3). This cannot be delegated to the P&C.
• may include signs/banners on the school perimeter acknowledging the names and logos of P&C sponsors. This is a P&C school fundraising activity and does not require an advertising agreement (refer to Sharing of school facilities procedures section 1.3).

Compliance requirements:

• As part of a sponsor benefit, the department can publicly display an organisation’s logo or name in connection with the department’s logo, or a school’s logo, in any school or directorate communication or media channel.
• When displaying the NSW Government Waratah logo:
  • Follow the NSW Government’s Sponsorship and Partnerships Guidelines by registering for an account with the NSW Government Brand Toolbox.
  • For incoming sponsorship activity follow the brand guidelines for NSW Government led communications.
  • For outgoing sponsorship activity external parties must follow the brand guidelines for External Party led communications.
• Logo acknowledgement needs to specify sponsorship of a program, event, or initiative rather than of the school or department as a whole. For example, the Schools Spectacular, Public Education Week, teachers’ conference, school breakfast club or robotics team.
• Always place the logo in the context of the sponsored program, event, or initiative, for example:
  • on a sign promoting the program
  • in printed and online materials (newsletter, flyer, program)
  • on the school or program communication channels in line with relevant policies, for example, the Nutrition in Schools policy and Social Media policy.
• Do not give the impression that the department endorses the organisation, its products or services.
• Do not display an organisation’s name and logo on school uniforms ordinarily worn by students. For sport, physical education and physical activity classes the school’s sport uniform is classed as ‘a school uniform’.
• A sponsor’s or manufacturer’s logo may be displayed on a school’s representative sporting uniform (for example, football jumpers), commemorative attire (for example, a school leaver’s jersey), or other clothing produced for a specific school team, event, or occasion (for example, a school’s choir, robotics team, chess club). The school or department should remain the primary brand.
• An organisation’s logo may link to an appropriate page on their website. The department accepts no responsibility for the content, privacy policies or practices of third-party sites linked to and from department sites. You can use the following disclaimer from the department’s copyright page:
  
  ‘If you use the links provided on this website to access a third party's website, you acknowledge that the terms of use, including licence terms set out on the third party's website apply to the use that may be made of the materials on that third party’s website or where permitted, by the Copyright Act 1968 (Cth). The department accepts no responsibility for content on third-party websites.’

For information and to request support on advertising, please refer to the Communications and engagement Advertising (staff only) intranet page.

Paid advertising should only be considered as part of a strategic communications plan where there is evidence to demonstrate it will help achieve the department's objectives.

Government advertising is not permitted in the lead-up to a state election.

Principals, managers or project leads must ensure advertising material complies with the department’s requirements.

• Ensure any potential advertiser is a suitable organisation and the fee received by the school represents fair value. Refer to section 2.1. Refer to Assess an organisation’s suitability.
• Complete an advertising letter of agreement to determine where advertising will be placed.
• Publish the advertisement. Make sure advertising material published in a school communication channel is:
  • clearly distinguishable as paid advertising
  • proportionate to school-generated content (ensure advertisements are not more prominent in position, size, or number than school content)
  • not placed in classrooms or in a position in the school that targets students.
• Distributing promotional flyers and advertisements to students is strongly discouraged.
• Invoice and receive advertising revenue in SAP. Refer to the Schools finance Sources of revenue (staff only) page for the correct cost assignment, general ledger and fund code.
• Remove advertising at the end of the agreed term.

Principals, managers, or project leads must follow the process outlined below:

• Decide whether to use an open process (best practice to ensure incoming sponsorships are equitable and fair) or a direct approach. A direct approach may be necessary in some circumstances, for example, where:
• the selection criteria indicate only one suitable sponsor
• the activity is of interest only to one potential sponsor
• time is limited
• an open expression of interest (EOI) process produces no result.

The reason for approaching a single sponsor, rather than using an open EOI is documented on the Sponsorship risk assessment (staff only) (PDF 2 MB).

• Prepare an Expression of Interest (EOI) template (staff only) found on the Communication and engagement Resources page under Other tools and resources (non-mandatory) documents. The EOI must include selection criteria against which the project lead will assess potential sponsors and suitable sponsorship benefits that will be offered. Contributions can be cash or value-in-kind. Refer to section 1.5 Offer suitable sponsorship benefits.
• Approve and publish the EOI (go to market)
  • publish on the department or school’s website
  • distribute the EOI to all or as many organisations in the targeted industry sector or category as possible.
• Assess respondents. Principals, managers, or project leads must make a decision based on:
  • alignment with the published selection criteria
  • the organisation’s values and reputation (refer to section 1.2 Only partner with suitable organisations)
  • risk and conflict of interest (addressed later in the sponsorship risk assessment)
  • value for money (the cost of managing smaller sponsorships may outweigh the benefits received)
  • whether it undermines or compromises an existing procurement arrangement
  • whether the value-in-kind products or services are fit for purpose. For example:
    • are they compatible with department systems and security protocols
    • do they meet the department’s Education Facilities Standards and Guidelines (relevant for school designs).
• Notify successful and unsuccessful EOI applicants.

Principals, managers, or project leads must follow the process outlined below.

Complete the mandatory Sponsorship risk assessment (staff only) (PDF 2 MB) and conflict of interest declaration (information found through a link in the Declaration box [page 3] of the sponsorship risk assessment form) for successful sponsors.

The Sponsorship Risk Detective Training MyPL training is not mandatory, but provides a sound guide to the 4 major sponsorship risks, outlined below. If there are several sponsors with similar risk profiles, project leads can complete a single sponsorship risk assessment and conflict of interest declaration for the whole sponsorship initiative:

• the department engages with an unsuitable organisation and suffers reputational damage
• department staff endorse a third party or its products or services
• sponsorship facilitates or conceals fraud or a conflict of interest
• a sponsorship results in physical or emotional harm to staff or students.

Develop and sign agreements:

• use an agreement template on the Communication and engagement Resources page (staff only) and refer to section 1.9 Maintain written agreements and seek relevant approval
• seek advice from Legal Services (staff only) before signing an agreement supplied by a third party
• ensure value-in-kind contributions are at a fair market value and documented, including GST
• ensure written agreements incorporate the opportunity for rights of termination, including without cause
• ensure agreements involving a network of schools are approved by a Director, Educational Leadership
• for agreements that are greater than $50,000, Business Engagement must review and co-sign the agreement.

Receive funds and register value-in-kind contributions:

• reecord all sponsorship revenue raised in the finance system, SAP. Use the specific general ledger account 420008 – Sponsorships received. Refer to the schools finance Sources of revenue (staff only) for specific guidance
• register value-in-kind sponsorships and collaborations valued at $5,000 or more (where no money is received and no records in SAP) in the Sponsorship register (refer to the Communication and engagement Resources page (staff only)
• update the school equipment registers as needed to reflect the receipt of value-in-kind contributions. However no further action is necessary in the school’s finance system.

Incoming sponsorships attract GST, as sponsors receive an agreed set of benefits (a good or service) in return, such as acknowledgement, signage or invitations to events.

Principals, managers or project leads must:

• Ensure sponsorship benefits outlined in the agreement are delivered. Acknowledge sponsors, preferably in writing or by profiling the organisation’s logo. Refer to section 2.5 Display an organisation’s name or logo.
• For transparency, consider evaluating and reporting on sponsorship where appropriate, including lessons learned and a recommendation about continuing the sponsorship. A report can remain internal if required.
• Share data and insights, planning and future recommendations, and how the commercial arrangements and sponsorships benefited the department, school and student outcomes. Use the evaluation and report templates on the Communication and engagement Resources page (staff only).

Decide how to progress the sponsorship arrangement. Either:

• end the arrangement at the completion of the agreement term
• terminate it earlier, with a letter or email of termination. Document the reason/s for terminating the sponsorship by updating the mandatory sponsorship risk assessment and conflict of interest declaration. Reasons for early termination may include adverse publicity surrounding the sponsoring organisation, agreement or sponsored activity; the sponsorship threatening the department’s integrity; or an actual, potential or perceived conflict of interest arises that cannot be effectively managed
• extend the arrangement if both parties agree. Document this in writing (refer to section 1.9 Maintain written agreements and seek relevant approval)
• begin a new EOI process, which enables options to be re-evaluated and the market to be retested.

Principals, managers or project leads must:

• Assess the initiative to ensure it:
  • aligns with department values and strategic objectives
  • can provide tangible evidence of improved educational outcomes for students.
• Confirm with potential sponsorship recipients if any other NSW government agencies have been approached to sponsor or expressed interest in sponsoring.
• Consultation with any other interested NSW Government agencies must ensure maximum value for the government as a whole, rather than for the department alone.
• Complete the Outgoing sponsorship framework (staff only) (DOCX 66 KB)
• Be authorised to incur the expenditure and approve outgoing sponsorships according to their financial delegation and procurement procedures.
• Consult with Director, Educational Leadership for amounts greater than $10,000, or where there is doubt about the receiving organisation’s or individual’s suitability.
• Consult Business Engagement for expenditure greater than $50,000 (cash and value-in-kind).
• Document in a sponsorship agreement (refer to the Communication and engagement Resources page (staff only) for suggested templates) and record outgoing sponsorship expenditure in the finance system, SAP, using:
  • school and community funds only (funds the school community has raised)
  • the specific general ledger, fund code and cost centre relevant to the school or directorate. Refer to the Schools finance Sources of revenue (staff only) for specific guidance.
• Ensure sponsorship recipients acknowledge the department’s sponsorship contribution in line with the NSW Government’s Funding Acknowledgement Guidelines
• Evaluate and report on the outgoing sponsorship. Include:
  • lessons learned and a recommendation about continuing the sponsorship
  • data and insights, planning and future recommendations
  • how the commercial arrangements and sponsorships benefited the department, school and student outcomes
  • if required, a report can remain internal but should be undertaken for transparency. Use the evaluation and report templates on the Communication and engagement Resources page (staff only).
• Renegotiate, retest or terminate the sponsorship agreement:
  • if renegotiating a sponsorship, retest the market to ensure current sponsorships offer the best value to deliver on the strategic outcomes
  • if terminating a sponsorship send a letter or email of termination.
• If ending an agreement, staff can update the mandatory sponsorship risk assessment and conflict of interest declaration and use this to document the reasons for terminating a sponsorship. Circumstances that could result in termination include:
  • not being able to deliver on the department’s strategic objectives
  • adverse publicity surrounding the sponsorship recipient, agreement or sponsored activity
  • the sponsorship threatening the department’s integrity
  • an actual, potential or perceived conflict of interest arises and effective management strategies cannot be established or maintained.

Donated funds must be received over the counter via cash, cheque, or EFTPOS, or through an online portal on the school’s website. Schools must not share the NSW Government Schools bank account details to receive donated funds as these payments are unable to be matched to the school.

Donations to schools are GST free because no goods or services are provided in return. Contributions to library and building funds require documenting due to tax deductibility requirements associated with such payments. A school library fund is a public fund maintained solely for the acquisition or maintenance of books and other educational resources.

A school building fund is a public fund maintained solely for the acquisition, construction, or maintenance of school buildings. Government special schools may be endorsed as deductible gift recipients, not just for a building fund or public library. This allows them to use their deductible gift recipient funds for a broader purpose, which may mean they can apply for certain foundation grants. Refer to Deductible Gift Recipient status for schools (staff only).

Donors wishing to contribute to staff and student scholarships can find out more by referring to Public education scholarships.

For donations related to an emergency or declared disaster principals, managers or project leads should direct people who would like to donate goods or give financial support to How to donate to support recovery from disaster where donations can be made through GIVIT, a not-for-profit organisation partnered with the NSW Government.

Gifts received through GIVIT do not need to be recorded in a gifts and benefits register. GIVIT will provide donors with a receipt for cash donations it receives.

Note that:

• schools do not need a permit for fundraising
• funundraising activities are generally exempt from Goods and Services Tax (GST) and Fringe Benefits Tax (FBT) however there are some exceptions. Contact EDConnect Taxation (staff only) for advice.

Principals, managers, or project leads must follow the process outlined below.

Approve the fundraising initiative:

• ensure the initiative is appropriate and consider the fundraising method such as a fundraising drive, a fete, an appeal, a raffle or a crowdfunding campaign (for further information see Run a targeted crowdfunding campaign drop down tab below)
• confirm that the charity is registered for deductible gift recipient status on the Australian Government’s ABN Lookup page and that it is registered with the Australian Charities and Not-for-profits Commission. This evidence must be retained with the school’s transaction records.

Conduct fundraising activity in accordance with the Charitable Fundraising Act 1991 and the Community Gaming Act 2018 (for further advice on the fundraising and gaming Act contact Legal Services). To comply with this legislation, staff must:

• maintain accounts, records and minutes of decisions
• maintain a minimum ratio of expenses to receipts
• identify the purpose and beneficiary of the fundraising (if raising funds for a charity)
• issue a receipt for all cash donations
• not ask for donations from motorists on public roads
• ensure children participating are over 8 years old, have parental approval and work in groups of 2.

The department’s Fundraising fact sheet (staff only) (found on Communication and engagement Resources page under Other tools and resources [non-mandatory]; General templates) provides further information on complying with each obligation and running games of chance. When running a game of chance, staff must:

• ensure prizes are appropriate (for example, cash, goods, services or vouchers). Tobacco, firearms and cosmetic surgery are not permitted as prizes
• ensure cash prizes do not total more than $5000
• ensure fundraising tickets have charity information and are clear on when and how the winners will be notified
• have a permit if required. Permits are free and are issued by NSW Fair Trading.

Receive fundraising revenue using the correct general ledger and fund code (staff only) (Refer to Schools finance Sources of revenue):

• revenue raised from fundraising for the school must be assigned using the correct cost assignment, refer to Schools finance Sources of revenue (staff only).
• revenue raised for a charity must be assigned using the correct cost assignment, refer to Schools finance Third party money (staff only).

Use funds raised for the advertised purpose or donate funds raised to the registered charity if applicable. Payment of raised funds to a registered charity must be made using the correct cost assignment, refer to the Schools finance Third party money (staff only). It is best practice to use a PCard to donate to charity, provided funds are raised and received first and processed as third-party receipts and payments.

• purchase goods for resale by students and school staff to the public
• hold stock in a secure location
• conduct a stocktake at the end of the activity (or at the principal’s request)
• maintain a record of the following:
  • total value of purchases
  • amounts paid to the supplier
  • stock issued to each person responsible for resale
  • amounts collected from each person responsible for resale
  • value (at cost) of balance of stock
  • total profit.

Fundraising to support the personal needs of members of the school community (for example, to undergo medical treatment) should be undertaken by individuals rather than the school.

P&C activities are not subject to the NSW Government banking and services contract and restrictions around crowdfunding platforms do not apply.

Schools must ensure any crowdfunding strategy:

• is for a specific and short-term need, as opposed to long-term funding for the whole school
• is used to support an extra-curricular project, or one that is not exclusively government funded
• has an allocated target
• is approved by the Director, Educational Leadership
• outlines the project without identifying individual students
• shares a link to the crowdfunding page in appropriate communication channels
• considers the management and acquittal of funds and reports appropriately on results including any unused funds or funds raised above the target or need
• communicates to donors if there are third party provider fees and conditions associated with the crowdfunding platform. Schools will need to report on these fees separately in their school reporting.

• Communication and engagement Resources page (staff only)
• MyPL - Sponsorship Risk: Detective Training

• Commercial arrangements, sponsorship and donations policy
• NSW Government Sponsorship Policy
• Sharing of school facilities policy
• Sharing of school facilities procedures
• Content style guide
• Finance in Schools Handbook (staff only)
• Procurement policy (staff only)
• Healthy eating procedures
• Code of ethics and conduct
• Values in NSW public schools policy
• Legal Issues Bulletin - Fundraising activities LIB36
• EDConnect advice on delegations (staff only)
• NSW Department of Education Brand Guidelines (staff only)
• NSW Government’s Sponsorship and Partnerships Guidelines
• NSW Government’s Funding Acknowledgement Guidelines
• Sponsorship in the Public Sector (May 2006) (PDF 442 KB) (ICAC)
• Fraud and corruption control procedures
• Education Facilities Standards and Guidelines
• Design Framework: Sustainability
• Gifts, benefits and hospitality procedures
• Controversial issues in schools policy
• Social media policy
• Media relations policy
• Enterprise management policy
• Industry engagement (buy.nsw)
• Deductible Gift Recipient Status for Schools (staff only).

Business Engagement
be@det.nsw.edu.au
02 7814 3863

Legal Services
02 7814 3896
Submit an online request for legal advice

Media Unit
mediaunit@det.nsw.edu.au
02 7814 1559

Procurement
Submit a procurement enquiry
edconnect.procurementsupport@det.nsw.edu.au

EDConnect
1300 32 32 32
EDConnect homepage for all enquiries including EDConnect Taxation Centre

Communication and Engagement
Request support
EDConnect advice on delegations (staff only)