Question: Switching from PTA to PTO - Transferring the money

We are seriously considering making the switch from PTA to PTO. However, when it comes to our bank account, the only advice I've found on the site is to try and spend down to $0 before dissolving the PTA. That's not possible in our case. How do we switch the money from PTA to PTO?

Asked by AlecaSullivan



Advice from PTO Today

Craig writes:
Legally, you are allowed to donate the money to another 501c3 organization. If you apply for 501c3 status for your PTO, it will be retroactive to the PTO's start date. You may also donate the money to the school, which certainly has a vested interest in making sure the parent group gets off the ground. Some state PTAs have vigorously claimed that the money belongs to them when a local PTA closes, which is why it's helpful to have nothing left in the bank account when you officially disband -- whether you spend it or donate it.

Community Advice

AlecaSullivan writes:
Thanks so much. We are in Illinois - is there any precedent I should know about in our state?

Advice from PTO Today

Craig writes:
Not that I know of, and the issue is more one of making the transition easier rather than being in actual danger of losing the money. By the way, there are helpful resources on our Bylaws/Nonprofit page for setting up your PTO. Also, our PTO vs. PTA page has information to help with the switch -- but it sounds like you've already found that. Good luck!

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