Home baking is a very sore point at school. The local council has banned any foods from parents/others being given to the children due to Health and Safety 'concerns' in our LEA. Only commercial food is permitted, on account of the fact Mr Kipling's efforts are so much better for children than handmade produce. Our neighbour used to make the most fantastically decorated Christmas cakes for the school parties. Now they've been banned and the children have to have an additive-laden, tooth-rotting, stomach-churning bought alternative instead. You even need an H&S certificate to be able to butter bread for sandwiches in the kitchen.
The secret to the fund-raising is to throw it wide open to the local community! Everyone gets involved, not just parents, so you get the whole spectrum attending events, from newborn babies to crumbly old retired headteachers from the year dot, not to mention grannies, grandads etc. Some of the fund-raising was getting tiresome in that actually making a profit from events was getting harder so it was agreed to instigate an annual voluntary £30 donation for each family. It's made a huge difference as the school can put on more social events without financial concerns.
As well as that, each year they do the Macmillan Coffee Morning, wbhich raises lots of money for the charity and the school has supported a school in Ghana with money and school equipment. Everyone, pupil and adult, gets the chance to participate, which creates a lovely atmosphere of inclusiveness.
Wrt to the little boy you mention; that's obviously been badly dealt with but as you say, could happen anywhere. It would have been jumped on from a great height at our little school. On the one occasion I had to complain about my dd being bullied, it had been sorted out by the end of that day and never recurred.