If you've identified that the same parents, time and again, are the ones passing NSF checks, why penalize all parents by requiring cash or money orders? Why not just restrict the NSF parents to cash/money orders and allow the rest to pay with checks?

We have a budget set for this, It started at 500 and we only have 50 left, we will be looking at going to cash/money orders next year at there is no way we can deal with this each year, the bad thing is that is been the same people time after time.

One additional note that we have considered in our discussions about how to handle this very issue--After sending notes home via the kids, and calling each family, we have several students who have either not paid for fundraising items or we have nsf checks. We decided to send a letter with a signature of receipt so that we could file this with our accounting records. Uncollected amounts still look as if you've received the funds if payment was expected. The IRS might think it is suspicious if the amount received by an organization doesn't match the anticipated amount received. The paper trail helps to protect the officers and the whole group.

I agree with the suggestions of putting the debt in writing and of not allowing participation in PTO events until the debt is paid. I realize that this may expose the kids to the issue, but they can also be great reminders and motivators because most kids want to be involved.

Regarding the NSF fees, our PTO was able to make an agreement with our bank that we would not incur fees for bounced checks because we are a volunteer organization raising money for the school's benefits. Perhaps other banks would agree to that, also. It is certainly worth asking.

If you haven't already, you need to send her written notification of the NSF checks, with copies, and a demand for payment by a certain date. Offer to allow her to make payments (say 3 equal payments two weeks apart to be completed by "x" date) if that would help her be able to satisfy this debt.

If she still ignores the debt, you could take her to small claims court but the expense of doing so will be more than the amount she owes you.

Your "ace in the hole" is to not allow her family to participate in any PTO activities until the debt is satisfied. So, if your school has an end-of-year carnival, etc., the children won't be able to buy tickets to attend until the PTO is made whole.

Also, even if she does make good on the checks, the PTO ought to stipulate that she is to be a cash payer for the remainder of the year for all other activities. She'll have another chance to again pay for activities with checks beginning with the new school year next fall, but the consequence for bouncing checks this year is the cash-only restriction .

Beginning next year, your PTO may also want to consider making participation in the Santa Workshop a pre-paid activity so you can head off losing both the money from the NSF checks and the value of the items. Although you had just 3 NSF checks this time, there may be far more in the future due to the economic situation.

We had this happen this past December for our Santa's Secret Workshop as well. It was held the first week of December. Checks were deposited on Friday of that week; the 3 checks (written by one parent--1 check for each child) were returned on Monday.

Of Course, the kids already had shopped at school and had their presents.

The parent called me at home and let me know that she wrote the checks out of an account that was closed. (I don't understand how that could happen, but whatever). Anyway, I checked with the bank, they didn't charge us fees, so I told her to leave the $50 from the amount of the checks in the office in our mailbox.

I checked 3 times over the next 2 weeks and there was nothing. I called her at work with the phone number she gave me and reminded her. She said she would go the next morning and drop it off. Nothing there when I checked that afternoon and nothing the next day.

Should I pursue this any further?? Like others have said, I don't want us to have the reputation of a collection agency, but $50 is a lot of money to our very small organization. I do see her shopping once in awhile and I am tempted to ask for our money back, but I am too chicken.

What is everyone's opinion????