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# Not so fast: ‘Gift policy’ will limit school spending
- URL: https://www.smdp.com/not-so-fast-gift-policy-will-limit-school-spending/
- Published: 2004-09-01T15:00:00.000Z
- Updated: 2026-10-23T04:59:36.000Z
- Author: Guest Author
- Tags: Education, Santa Monica, #archive-import

*New gift policy enables wealthier schools to keep more of their cash*

*By GENEVA WHITMARSH Daily Press Staff Writer*

DISTRICT HDQTRS. — Schools will soon be limited on how much they can spend from donations they receive from parents.

A controversial “gift policy,” which has been debated in the community for more than a year, is expected to undergo some slight tweaking before receiving the school board’s stamp of approval next month.

“There are two parts of the policy that the school board wanted to take a closer look at,” schools superintendent John Deasy said Tuesday. “Both involve making it clearer what the process for district intervention is, summer school, kids who can’t read by third grade, etc.”

Deasy said he expects the gift policy to be approved on Sept. 9.

“The board seems to like it,” he said. “It’s their policy.”

The controversial plan has pitted many members of the Santa Monica-Malibu Unified School District against one another. Opponents call the policy an unfair “tax” that will quell the enthusiasm of many generous donors.

Because of the controversy, the policy was revised so wealthy schools could keep more of their money.

Under the new proposal, the district would take 15 percent of the first $100,000 collected by individual schools. After that, the amount would drop by 2 percentage points for each $100,000 raised. Money would then be ferreted back out to district schools based on size and need.

When it was first unveiled, the policy called upon all schools in the district to contribute 15 percent of their cash donations to a central fund, which would then distribute money to schools based on size and need.

Also part of the revised policy is an amended, clearer delineation of exemptions. Field trips, academic scholarships, scholarships for needy children and district approved capital programs, among other things, would be exempt from the gift policy. Under the proposal, a voluntary donation fund also would be set up to run simultaneously with the mandatory fund.

Much of the opposition to the plan has come from wealthy schools in Malibu that consistently raise more than their Santa Monica counterparts. For example, McKinley Elementary raised about $30,000 from donors last year, while Pt. Dume Elementary accrued approximately $300,000\. The stated goal for fundraising at Malibu High School is $1 million.

*Originally published in the Santa Monica Daily Press print edition on September 1, 2004.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/090104.pdf?ref=smdp.com)