Legal and Liability Guide for Funders Supporting West Virginia Public Schools
⚖️ Overview
In West Virginia, philanthropic funding to public schools generally falls under charitable or educational support and is low-risk if properly documented and aligned with school board policy. However, funders can inadvertently incur liability—or trigger IRS or procurement scrutiny—if they:
Overstep into governance or instructional control
Create contractual obligations without clarity
Fail to follow state-level procurement and donation guidelines
As philanthropy and private investment play an increasingly important role in education, funders working in rural states like West Virginia must navigate a complex legal landscape. This guide provides a clear and actionable overview of the legal and compliance considerations for anyone looking to fund pilot programs, infrastructure improvements, teacher stipends, or technology upgrades in public school systems.
We break down common types of educational investments—cash grants, in-kind donations, contracted services, and personnel support—and categorize them by legal risk. Whether you're supporting AI pilot programs in classrooms or funding broadband access in underserved counties, the post outlines the documentation you need to minimize liability, including memoranda of understanding (MOUs), gift letters, board approvals, and insurance verification.
Particularly in West Virginia, where small rural districts often operate with limited administrative capacity, successful funder partnerships must also align with local timelines and governance. That means understanding when school budgets are proposed, how decisions move through boards of education, and why stipends are often essential for pilot fidelity in under-resourced schools.
For funders looking to support education in coal-impacted or high-poverty regions, this guide offers more than just legal clarity—it’s a framework for trust-building, sustainability, and impact. It helps ensure that your investment doesn’t just pass compliance—it delivers long-term value to the students and communities who need it most.
⚠️ High-Risk Legal Triggers
Student Data Access: Funders or third-party vendors must never access identifiable student information without written district and parental consent (per FERPA).
Instructional Oversight: Funders must avoid dictating curriculum or instructional decisions directly—this could violate WV state law around governance of public instruction.
Employment Relationships: If a funder pays for personnel (e.g., stipend for a teacher), payment must go through the district—not directly to staff—to avoid wage law issues.
Facilities and Real Property: Any investment in school buildings (even minor improvements) may require state review under WV School Building Authority codes.
✅ Best Practices for Funders in WV
Always work through the district’s finance office (not just principals).
Ensure board approval for any funding agreement that affects staffing, scheduling, or programs.
Structure pilot programs as “opt-in” opportunities for schools/teachers with clear scope and duration.
Include indemnity clauses in MOUs where feasible (e.g., “district assumes all liability for implementation”).
Require insurance from vendors—including general liability and cyber/privacy if technology is involved.
Maintain donor transparency for IRS purposes—get and issue acknowledgment letters (esp. for grants over $5,000).
🧾 Tax & Compliance Notes
If you’re a 501(c)(3): Ensure donations are not earmarked for the benefit of an individual or improperly restricted, or you risk losing deductibility.
If you’re a private foundation: Avoid excessive control, self-dealing, or tying grants to lobbying or political activity.
Use form 8283 for in-kind gifts over $500 if filing taxes.
For donor-advised funds (DAFs): Confirm with the custodian that your grant aligns with IRS guidance on public benefit and educational use.
🧷 Funders Should Ask:
Has this pilot been formally approved by the school board?
Are we collecting any data from students, teachers, or families?
Will our funds support salaries, stipends, or contracts that trigger employment or procurement law?
Is there a local contact (e.g., district innovation officer or finance lead) ensuring compliance?
Are indemnification and insurance addressed if outside vendors are used?
📝 Conclusion
Philanthropic investment in West Virginia schools can be transformative—but to be compliant, funders must respect governance lines, secure documentation, and prepare for board-level processes. By partnering transparently with districts, offering clear terms, and covering implementation risks (e.g., via stipends and insurance), funders can minimize liability and maximize impact.