The school collects dues from the families. Even though the dues are technically optional they do appear on a bill from the school along with other fees due. The school keeps the dues until the last week of school then writes a check to the PTA for the money (aprox $10,000!!). A week later the PTA write a check for all funds raised that year to the principle discretionary fund leaving only 500 in the PTA account. When I learned this I was not happy. Anyone else ever heard of such a thing? Is this ethical?

Hi London -

Could use several more details?

Sounds like a private school. Is that right? In the U.S.?

How much are the dues? Is the PTA an independent 501c3 organziation?

Tim

It is a private school
We operate under the schools EIN so we aren't an independent org (the parent body doesn't know this - it is not a secret just not discussed)
The dues are 50 per family
Yes in the united states
we have a separate bank acct

Hi, it seems kinda weird. Our PTO is self managing, we have our own accounts and raise money to go towards different things, one year we bought a sign, last year we bought level reader books, etc Our fee is just $1 and that gives you the right to vote on a major election. We raise enough money for our small K-6 school that we would never charge that $50. What do they do for the kids and teachers???

PTA's and PTA's are upheld to different "RU:ES" when it comes to money. Can you clarify if you are a PTA or a PTO.

Well, PTOs and PTAs aren't always held to different rules. If group were a 501c3, then rules would be the same.

I don't think this group could be a formal PTA, as it isn't 501c3 (and PTA, too, is primarily made up of public schools).

London -- your situation certainly sounds unusual, and I question why the fancy accounting maneuvers. Usually when I see those, I suspect something amiss. That said, private schools *are* different animals. If we were really going to get into this, then there are even more questions:

Does the parent group have the funds it needs to run operations? Does the principal actually use the funds collected to fund parent group activities? Does the parent group board understand the reasons for these transfers? Are they supportive? Stuff like that.

My first assumption in something like this is to presume good intentions. What do you think they are here?

Tim