Question: Reserve Fund Disclosure Yes or No

What is PTO Today's stand on disclosure of reserve funds?

Asked by Anonymous



Community Advice

rgibbs writes:
Since being a part of the PTO/PTA for awhile, I strongly agree with the others who state "that funds that are raised within the school year should be spent within that school year." Since there are no concrete rules or laws saying that we have to leave ex amount for the incoming board, we should use the PTA guideline only as a tool of measure. But I my opinion, perhaps as a courtesy, leaving an agreed nominal amount would greatly benefit to the new board any way. Parents who participate in school fundraisers really want the organization to do right by their hard earned efforts. We as an organization should want to be open and gain their respect so that they will want to help us instead of shy away from us.

Community Advice writes:
I was actually hoping to hear from a PTO representive regarding the PTO policy on whether the actual amount of the reserve fund needs to be disclosed to all the members or can be reviewed and monitored by the Finance Committee alone. Our PTO has a long standing policy of maintaining a reserve fund. This reserve allows us to respond to emergencies and responsibly enter into consultancy agreements for a number of different services for our children. My question was whether or not to have a reserve fune, but whether there is a specific PTO policy regarding disclosure of the amount of the reserve fund to the entire membership. Thanks

Advice from PTO Today

Rockne writes:
Hi dawnas - There is no "official PTO Today policy" on this or any other matter. PTOs are independent organizations that can make their own bylaws and operating systems (as long as they are within the law). We do have opinions and advice that usually come from our own experience or from our experience in working with so many groups over the years. To your question, I think that carrying over funds into the next year is a good policy for the reasons mentioned and more. Should it be disclosed? Sure. I think all your finances as a PTO or a PTA should be an open book. Why not? Your members might not agree that a carry over should happen or with the amount you choose to carry over. That's a perfectly fair discussion, and I know good groups that operate with no carry over just as I know good groups that operate with large carry overs. Hope that helps. Tim

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