We used to have that problem, esp when we did the Entertainment book fundraisers.
To ensure a profit and not a loss we've switched to doing only fundraisers where you have to "place an order". And we ask for the money upfront when the order is turned in. If an order isn't paid for, it doesn't get ordered. This way we have our profit in our hands immediately.
We also had to stop accepting checks for a while as many of them were bouncing. After a few years, we started accepting them and this year, we only had 2 bounce which both have been paid for in an honest manor.
If you've got the nerve, you could make up a very formal letter for each offender that states what you expect them to do and give them a timeframe in which to return the money or product and end it by stating that anyone who does not meet the deadline will be turned over to small claims court. Make sure to send the letters by certified mail or some other method that gets a signature when delivered. I used small claims court when I managed a video store to large late fees and missing equipment. There is some paperwork and small fees involved. Contact your county attorney for details if you're interested in going this route.
Don't worry about hurting their feelings. If they can have the nerve to steal from their own children(because ultimately that's what their doing) they can't be too great of a person.
It sounds like you need to change your fundraisers that don't require you to give the product out up front. Especially if the principal doesn't help in it's collection. Obviously it's not an effective fundraiser if you are losing money! As far as collecting what is still out there, I would badger with phone calls. I'm talking every day.
That is a real shame, but out of it comes a lesson well learned.
Okay I am fed up with parents not paying for fundraisers. Last year we had to eat $1200 this year we changed the way it was run and now we are down $1400. This is really pitiful!
How do i get parents to pay for what they signed out? We did a candy sale where you were only allowed to sign out one box at a time. Each box is $50.00. We have $1400 in $50.00 boxes out! THe candy sale ended on the 2nd of April. I have sent letters and recieved no replies! What do I do now. Last year our prinicpal refused to do anything about the $1200 we had to eat! Its truly frustrating!