I've involved with a public jr. high/high school that would like to do a fundraising activity where students would get sponsorship from family, friends or local businesses to read books onto webcasts that would then be posted for free viewing on you-tube. Would we need to gain permission from copyright holders to do this?
No, not for a free use, I wouldn't think. It would just be if you were asking people to pay to view the webcasts. The only money involved is a charitable activity to get the books recorded, if I am understanding you correctly. The only thing you might want to look into is whether you need a temporary fundraising business permit in the community where you want to do this. Have fun, and good luck!