I take it the principal isn't PERSONALLY receiving/cashing the check, but rather is doing so as the agent for the school? In that case, it's simply a type of fundraising. I don't think it's uncommon for a school photography company to give back a percentage.

It wouldn't be an issue for me unless it was some sort of under the table deal or if the principal was being paid personally. Since he/she is telling you about it, doesn't sound like a secret.

I have question about something that I saw that I thought was fishy. A principal recieves a check every year from the photography company that she selects to do the school photos and at the bottom of the check it says Fall Commission. The Principal states that they recieve this check every year and normally cashes to do something for the teachers. However this year they are going to give it to their PTO as long as the PTO gives them back part of the check. Here is the Question is this check considered a kickback???? Also should the PTO cash it??