The one I helped compile was actually for Relay for Life, but the Senior Class in our town high school has used this for a Project Graduation fundraiser alot. Basically you send home a letter letting the parents know what categories the book will have (i.e. Appetizers, Beverages, etc) and if the recipe has to be typed or not. The students can also submit artwork or whatever is submittable according to the company that you use. When I taught preschool we just typed up the recipes and included class pictures and student artwork and compiled the books ourselves. I guess whether you compile yourself or use a cookbook company depends on the size of your school and how much work you can put into this project.
May I ask how the cookbooks work? Do you have students submit there favorite recipes and put them all in one book? Do you have the students submit a picture or draw a picture of the item? When they are put together are they kid looking or do you type them to look professional?
We recently used Morris Cookbooks, and were very happy with the results. We got a lot of compliments and raised over $2500, we are a small school with 250 kids