Ally is visited by Nelson and the rest of his music class, including their music teacher at Sonic Boom. Nelson asks Ally if they can borrow the instruments since the music class's instruments got ruined, and Ally grudgingly says no after her dad tells her that they can't afford to let them borrow the instruments. Nelson and the rest of the class sigh and walk out, and Ally, feeling guilty, tells them to stop, saying that they can use all the instruments. Misinterpreting this, Nelson thinks that Ally said that they could take all the instruments for free, so all the students take the instruments.
After accidentally getting rid of all the instruments, Ally and the rest of Team Austin brainstorm ways to get the money to get all the instruments back before finally thinking of hosting a fundraiser. They then decide that Austin performing will be their main act, but when Austin's bad grades cause him to get grounded to study, he sneaks out to perform, thus earning the required money Ally needed. Unfortunately for Team Austin, Nelson's music teacher thinks that Ally raised the money for HER and thanks her, running off with the money. Due to this, Ally gets in trouble for the first time, and her punishment is not being allowed to read any books for a week.
Note that even though Ally has stage fright, she got up on the stage and spoke to the audience and camera multiple times. This could possibly be because her stage fright has gone away. Also, she wasn't all freaked out when she was featured in Cheetah Beat.