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What a strange and sad story from Colorado. If the parents stop coming, so it's a "principal/teacher organization", will the principal charge the teachers to pay for his slush fund??
I would think that all that's necessary to stop the $500 is for enough people (parents) to come to a meeting and take a new vote. The $500 isn't "owed" to the school; that's nonsense about being in arrears.
However, it sounds like your principal is a nutcase, and you may have to be more subtle about it. You might want to try a motion to "temporarily" suspend the $500 payments while the playground fundraiser is ongoing.
You may also need to mention that, per IRS regulations on "restricted funds," if the current fundraiser is specifically saying that funds will be used for the playground, your organization cannot use it for any other purpose. (Some posts on this site talk about how it's smart to say "playground and other items" so you aren't locking yourself in.)
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