PTO Today

This time the stealing from the PTA was done by a couple! Ugh. When the parents at Erdenheim Elementary School in Erdenheim, PA, decided to switch from a PTA to PTO an audit was done and numbers just weren’t adding up… to the tune of $17,000! Ouch. Unfortunately, this group learned the hard way about the importance of fiscal controls in PTOs and PTAs.

Yup, in the world of what PTOs and PTAs can and can’t do in the political realm, this one is definitely a no-no.  Neither schools nor any 501c3 non-profit is allowed to specifically endorse candidates for public office.  This Idaho group did and is now on the hot seat.

As an FYI, it *is* OK for a non-profit to be involved with politics, but only in approved ways.  Example:  it is OK for a non-profit to try to help educate voters on an issue.  Additionally, OK for a non-profit to hold, say,  a “meet the candidates” night.  Big difference, too, between supporting a particular candidate and supporting a cause.  OK, for example, for the cancer society, to advocate for more cancer research funding.  Wouldn’t be OK for cancer society to promote a particular candidate by name, even if that candidate was loudly for increased research funding.  Subtle but key difference.

Trouble (legal trouble or just ill will within a group) often starts when school staff or district officials push the parent groups to endorse a bond levy or tax override vote.  Has your group been in this position? 

Wow — this is the harshest sentence we’ve seen yet for a PTO or PTA embezzle case.  This Arkansas treasurer convicted of taking $23,000 (and that’s just what they can prove).

We do like the fact that this case was prosecuted and taken seriously. Too often, groups or schools try to sweep these cases under the rug or prosecutors downplay the damage.  Make no mistake — this is stealing from kids and violating a trust.  There’s also often even further damage to the support and involvement at a a particular school for years.

More than worth it to use smart, basic money hanbling procedures.  And to get insured.

Former president from outside Denver arrested — after her kids tried to play lookout on her getaway effort  –  for stealing from her group.  Grrrr.

In this case, the method was forging her co-signers signature on dozens of checks.  Our most basic of financial best practices – making sure that a non-signer opens the checking statement each month — would have likely prevented this one.  Also hope they’re insured. 

Two quickies that will be of great interest if you’re affected and not so much interest if you are not.

1. Peanut Butter scare hits clients of Sweet Success fundraising (including several California schools), as some fundraising cookie dough tubs are recalled.

2. Hearing that Varsity Gold fundraising, a pretty big group especially with high schools, has filed for Chapter 11.  The question on our message boards (in some fairly heated exchanges between insiders and anonymous posters (likely competitors) is what happens next. 

Over the ten years, we’ve been tracking PTO and PTA embezzle stories, two things have been true:  1) they just don’t seem to ever go completely away; and 2) there have been several periods where the volume seems to pick up markedly.  Sadly, I think we’re in one of those up-cycles now.  (Guess we should call it a down-cycle.

Here’s a bunch more:

Massachusetts town uncovers 4 cases.

Illinois HSA victimized.

As always, here’s our feature on preventing theft in your PTO or PTA group.  These basics steps are worthwhile. Please.

Leave it to the local news station to blow this up into some Watergate-level cover-up, but I think this media treatment of a school theft case is great evidence for my argument that groups should address these issues openly (and obviously enact systems changes immediately) if there’s a missing money issue.  This principal is far from alone in advocating a hush-hush treatment, but 1) these things almost always come out eventually (school communities aren’t widely known for a lack of rumors); and 2) groups and schools get far more credit and have far fewer problems when the issues are addressed profesionally and openly.

The media may have covered the story anyway, but the headline would have been about the poor PTO as victim and the lout who stole the money.  Instead, the story focuses on the principal and paints an unflattering picture of the school.

Worth re-linking to our “Financial Best Practices for PTOs” to help the next group avoid this issue altogether. Also hope these guys have PTO insurance to cover this kind of loss.

This stinks. This group saved for years for a new school sign, paid a (too) large deposit, and now the sign company is gone. Poof.

My read: yes,l I realize the local vendor was only a franchisee of the national Sign-a-Rama chain, but that parent company needs to do the right thing here. There is a connection.

Better news: we have some great, reputable school sign vendors in our School Signs yellow pages.

Few details at this point, but former volunteer under arrest in $40,000 theft. Hope these guys have insurance.

Sentencing comes through for former PTA treasurer convicted of stealing $180,000 (yes — nearly 200 grand!) from her group over 5 year period. Appreciate the fact that other officers and school parents prosecuted and advocated for harsh sentencing. However, looks like the sentence will be one year of home confinement.

There are so many basic tips for solid money management for your PTO or PTA, but here’s one straight from the article: don’t have bank statements mailed directly to treasurer’s home. No way!

Is your group protecting its funds?