Portland School Cash Crunch, Donors Bail After Fundraising Overhaul

Portland Public Schools bet big on a new, centralized way to raise money. So far, the math is ugly.

The district’s shift to a single, districtwide fundraising model has lined up with a steep drop in private donations, leaving principals and parent volunteers scrambling to plug gaps. The Fund for Portland Public Schools, the nonprofit created to pool staff-funding dollars, has been operating on far less than the old neighborhood-foundation system ever brought in. All of this is hitting just as the district faces roughly $50 million in budget pressure that could wipe out nearly 300 positions if savings are not found.

Donations Have Slumped Under the New System

As reported by OregonLive, the Fund for PPS had pulled in about $200,000 so far in the 2025–26 fiscal year, a fraction of what individual school foundations used to raise on their own. Carryover gifts from local foundations’ final year helped keep programs afloat this year, but overall giving has cooled across the district. Fund officials frame the slump as both a growing pain of transition and a signal that they have to rebuild on-the-ground trust.

Why Portland Blew Up the Old Fundraising Model

Supporters of the overhaul argued that the old setup let wealthier schools stockpile extra staff and services while other campuses struggled. In May 2024, the school board voted 5–2 to centralize donations for staff under a single districtwide nonprofit. As detailed by OPB, the new policy stops local foundations from using new staff-dollars at just one campus and instead sends those dollars into a shared pot aimed at higher-need schools. Backers said the move was about equity and transparency across Portland Public Schools, even if it meant giving up some neighborhood control.

A Rough First Year on the Books

The Fund for PPS’ first full year as the main vehicle for private dollars did not match early hopes. Willamette Week reported that the Fund raised about $593,000 in 2024–25 while spending roughly $1.4 million, so expenses outpaced revenue by a wide margin. That performance is being compared to the roughly $2 million–$4 million a year that local school foundations typically raised under the old model, a gulf critics say shows what the district walked away from.

Where the Smaller Pot of Money Is Going

Even with less cash to work with, the Fund has steered money toward districtwide supports. Its Parent Advisory Committee recommended investing about $1.03 million in 2025–26 for high-impact tutoring, math supports and school food pantries, according to materials from The Fund for Portland Public Schools. OregonLive also reports that community members raised roughly $37,000 last fall after a Fund appeal to shore up pantry work. Fund leaders describe those outlays as urgent safety-net spending, even as they try to grow a broader culture of districtwide philanthropy.

Donor Backlash Over Lost Local Control

Many parents and neighborhood donors bristled at losing direct say over how their money is spent, and Fund organizers say that frustration shows up in the numbers. Willamette Week reported that community reaction has ranged from basic confusion to organized pushback, with some families clearly preferring the old rule that donations stayed at their own school. Fund officials acknowledge they have to make the equity argument more clearly and show concrete results if they want those donors to return.

Fund Leaders Try to Calm Nerves and Rebuild Trust

Nick Brodnicki is listed as the Fund’s interim executive director and is contracted through the end of the school year while the organization works to boost giving, according to The Fund for PPS’ board page. The Fund’s Champion campaign is publicly shooting for a $1 million-plus goal this year and is recruiting school-based liaisons and working with PTAs in an effort to repair neighborhood relationships, the organization’s materials show. Leaders say that mending those ties and proving measurable impact are central to hitting their targets.

Jobs on the Line as Budget Crunch Deepens

All of this lands in the middle of a larger budget storm. Portland Public Schools is staring at an estimated $50 million shortfall for 2026–27, and district budget materials and local reporting describe early plans that could cut nearly 300 full-time positions if no other fixes emerge. The district’s budget pages outline the financial squeeze and options under review, while local outlets have reported leaders warning about wide staffing impacts and pressing lawmakers and donors to help close the gap. In that context, every dollar raised and every donor persuaded feels exponentially more important…

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