I have heard of folks doing a collection of songs specifically for non-commercial purposes such as fundraisers or other humanitarian efforts and I think it is pretty standard practice to seek permission. Usually for these types of things performers/artists are happy to participate and there is a simple written agreement that covers the legality issue.
I tend to be one to err on the side of caution when the law is concerned and I do think it is also a matter of respect for the artist.
Best,
Jayne
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