You need to remember that the principal runs the show. He/She is in charge of running your school. They are their to protect the students, the school and the parents. That is their job. Your needs are second to theirs. Sorry, but that is the way it is.
Most school districts do have a policy on how many fundraisers a school may run, and that policy is based partly on how much they sponsor themselves or allow others (again, sponsoring in a way) stuff gets sent home for the student body to sell or have a hand in selling. There is no nice way to put this, but they are children (the principal's responsibility), not a personal sales force. I don't mean that to sound harsh, but sometimes honesty sounds that way.
You need to find out if your district counts your group fundraisers along with the school fundraisers. It sounds like they do... and that is their right. Doesn't make it fair, just the way it is.
Once you know where you stand, it will be easier to know who to address your concerns and wishes to. I would caution you that if the powers that be are already looking for a reason to close the school, discontent between the administration and an active parents group is fuel for the fire. Be concerned, be active, be aggressive, but most of all, be careful. You don't want disagreements over fundraising to be the reason they close the school. Funds are necessary, but not at the cost of your school. Find a way to compromise with your principal. Find a way to run fundraisers that aren't student body powered (like a rumage sale that can be advertised in the local newspaper or on the local TV station). This may be the way to go because you aren't using the school or the students to make the money you so desperately need.
Lastly, when you said that you gave the principal some money:
I might also add we have given our Principal money this school year to help him, he has seemed to forget that.
does this mean you gave over everything from the fundraiser? I can only add that unless this is the case, it would appear that you and the school are working against each other in the long run. The reality is that unless your group and the principal have the same agenda for where the money should go, this whole thing may be for naught. You need money to keep your school open? You need money for extras? You need money for what? What exactly are the powers that be looking to shut your school down for? Have you asked the principal what your group can do to help that doesn't necessitate a fundraiser? Maybe money isn't the big issue. Could be test scores, in which case tutoring would be more helpful than a fundraiser... Know what I mean? Seek (answers) and ye shall find...
Good Luck!