A school building fund is solely for providing money for acquiring, constructing or maintaining the school or college buildings. It cannot be used for any other purpose.
Expenditure on capital improvements and maintenance, as well as installing and maintaining fixtures, are accepted outlays of a school building fund.
Costs payable from a school building fund include:
- Purchase of land for which there are definite plans to construct a building to be used as a school or college
- Construction or purchase expenses and associated financing costs
- Painting and general maintenance of school buildings, and building insurance
- Expenditure on carpets that are fixed to the floor of the school building, and
- Administration costs of the fund, including bank fees, accounting costs and fundraising expenses.
Costs that cannot be paid by a school building fund include running expenses of the school, paying teachers, buying furniture and materials, buying land to be used for buildings which are not to be used in connection with the curriculum or are for providing recreational space and maintaining sports grounds and car parks.
A school building fund may invest or lend its money if this is a bona fide and temporary arrangement and is consistent with achieving the fund's objects with all reasonable speed. To be a bona fide arrangement, the investment or loan must not serve purposes outside the objects of the fund (eg a loan cannot be applied for general school purposes).