My niece goes to a school in the bay area, Santa Rosa CA. Some of the other school in the area are using a program called Picateers. They setup schools to take their own portraits and half the money goes back tothe school. They also post them online and do file sharing with family and friends. It is a good program and schools actuallu make a ton of money. On their website it says that a school with 300 kids can make $3000.
It really makes sense. I don't know why they don't do it. The pictures now aren't even good, i feel like anyone could do better.