The best fund raising idea I know takes a lot of work and would definitely require getting in touch with the other People to People... people. This is what we did for band fundraisers for when we would go on major trips. I've noticed a trend toward drama (the discipline, not the llama) from your daughter, so if there are other like-minded and talented students in the group it would work perfectly.
What we did was hold a concert and dinner, but instead of the normal crappy spaghetti dinner we made it a fancy dinner and charged $50 - $100 per head. We served French Onion Soup, Salad, Salmon en Papillote, Rice Pilaf, Steamed Asparagus, and a Chocolate Raspberry Truffle Cheesecake for dessert. The parents did the cooking, the students benefiting from the fundraiser served as waiters for the evening, and at the end there was a concert by those same students. This was where I learned that even though my mom did almost all of the cooking while I was growing up, my dad was the chef in the family, as that's his menu.
Like I said, it takes a lot of work, and you would have to coordinate with other people to bring it off, but we raised something like $6,000 in a small town, with a music department that consisted of approximately 100 students. Damn it Dave, this really makes me wish I could be out there and help you put something like this together, it would be awesome.