If it's used for advertising, it's commercial use. You could be a homeless shelter advertising your free soup kitchen. It's still commercial use.
I agree it's best to have a contract. Better yet if you can work with your attorney on a form to use. Sometimes people (school district administrators) fail to plan properly and get themselves in a time crunch. This is when you weigh the risk/reward of offering the license on a verbal agreement and make a decision. Truth is, both parties in this relationship will benefit by negotiating in good faith.


