If you could pick one single product to sell for a fundraiser what would it be? Imagine selling money. Essentially that is what you are doing when you sell scrip. Scrip sales are becoming more and more popular as a fundraiser for schools. It is by far one of the easiest types of fundraisers available. Learn more about what's involved in selling scrip to raise funds for your school.
WHAT IS SCRIP?
Scrip is like substitute money. It's a card or certificate issued by a retailer with a monetary value ($10, $25, $50, etc.). Through a Scrip program, you can purchase gift cards in certain denominations just as if you went to the store to purchase them. You pay no extra beyond that of the face value of the card. But by purchasing the gift cards through your school's Scrip program, a percentage of the sale automatically goes back to your school.
A Scrip distributor purchases large volumes of gift cards from retailers. Because they buy thousands of dollars worth of scrip cards at one time, they are able to buy them at a discount from the face value of the card and resell them at a discount to member nonprofit organizations such as schools. The school, in turn, sells the cards at face value and keeps the designated discount as profit for the school.
POTENTIAL PROFIT
Scrip programs seem to grow with each year. One 500-student elementary school we spoke to said they earned an easy $1,000 in their first year selling scrip. They hope to double that this year as more parents become involved. Another 600-student school now in their second year with the program, said it's not unusual for them to take in $19,000 in orders during December - estimating an average 5% profit, that would be $950 in profit for the school in one month!
The student population and the amount of parent participation will vary school to school. As you continue the program, parents will get used to thinking about purchasing scrip in advance and using them just like cash. For example, if one family knows they spend $400 on groceries in a month, they can plan to purchase scrip for that amount each month and use it at the grocery store just like cash. At a 3% profit, that one family could raise $144 for the school in one year. Now multiply that times 100 families and you have $14,400.
HOW TO COORDINATE A SCRIP PROGRAM AT YOUR SCHOOL
Scrip program distributors may vary region to region and their exact operations may vary. The following information is based on a Scrip distributor with which we worked:
Contact a Scrip Distributor:
- Designate a PTO member to be the liaison between the Scrip company and the school. You may also want to ask for an assistant that becomes familiar with the process in the absence of the coordinator. Both should have an available computer and internet connection.
- Contact a Scrip distributor via phone or email. The Scrip program coordinator will send you program information and a membership application.
- The Scrip program coordinator will then email to the school liaison an order form (to be distributed to the school parents and teachers), an order spreadsheet (on which the coordinator will consolidate all of the school orders), and any promotional flyers for that month. Since new promotions are always being offered, the liaison can expect to receive an updated set of materials at the beginning of each month.
Distribute Scrip Information to Parents & Staff
- Distribute the order form to school staff and parents (through the student backpacks). The order form lists all of the retailers and card values available to purchase.
- We also recommend distributing a flyer with pertinent information (see our sample flyer) - explain the program, encourage participation, note the date orders are to be returned, where to return orders, and to who to make checks payable.
- Ask parents to pass along copies of the flyer and order form to their family and friends. Because you will receive orders back from people you do not know directly, ask that the name of the person ordering AND the student's name they are associated with be put on the order form. This will make distribution of the scrip gift cards easier. Also be sure the order form has a place for phone number and email address - if there are discrepancies, you'll need to be able to contact the buyer.
- One week prior to the date the orders are due in, either send a reminder to parents through the backpacks or place an A-frame sign in a visible location outside the school that reminds parents to get their Scrip orders in by the designated date.
Place the Order
- Once the school liaison has collected all of the orders, we recommend reviewing each one and double-checking the calculations. Confirm that the amount ordered equals the amount of the check or cash received.
- Consolidate all orders on the electronic order spreadsheet provided by the Scrip program coordinator. This order spreadsheet automatically calculates the total sales and percent that is profit for your school. Email the electronic order spreadsheet to the Scrip program coordinator.
- Since all of the individual checks were written to your school's PTO, ask the PTO Treasurer for a single check. The check is written for the Total Sales less the school's profit, so the school immediately has the cash in hand. The Treasurer mails the check to the Scrip program coordinator.
- Orders are generally received back in just a few days. However, during the December holidays, we recommend placing your orders a minimum of 3 weeks prior to school closing for the holiday break. We also find that many scrip retailers offer promotions (higher percent profits) in November to get schools to order early.
Distribute the Scrip Gift Cards
- When you receive your order, count each brand of gift card and double-check the quantity against the packing slip. If correct, you can proceed and distribute the cards. You will need envelopes to organize the orders.
- You may choose to either drop the assembled gift card orders at the school office and notify (via email, phone, or a note in the backpacks) the parents and staff that they can be picked up there. Or, some parents will request the cards be sent home in the student's backpacks. It depends on the age of the students.
Now that you know how, coordinating a Scrip program at your school should be easy. Contact a Scrip distributor today and start making money by selling money - "substitute money" that is!
Stop & Shop: Offers script also known as their fundraising gift card program that allows your school to purchase Stop & Shop Gift Cards at a discount and then sell them for face value.
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