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The United States Copyright Office states that, "If the movie is for entertainment purposes, you need to get a clearance or license for its performance." See: http://www.copyright.gov/help/faq/faq-fairuse.html

Movie License USA also provides a list of criteria to determine if you need a license to show your movie at a school. See: http://www.movlic.com/k12/faq.html#4

Edit: Um, I'm pretty sure that "entertainment purposes" means going to the movies or a drive in theatre. If "you need to get a clearence or license for its performance", then people would need approval merely to play the movie anywhere. So I think it's okay as long as it is the right age group according to rating.

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Q: The school wants to show several movies to an audience for fundraising The school is not planning on charging for the initial movie only for concessions Is this legal even with the FBI warning?
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