Question: Certificate of Deposit
Our PTO has held over 10k in a CD. There have been questions as to if this is legal. I am not sure why it would be illegal as our bank accounts are all under our 501c3 status? Any resource ideas to look into this would be greatly appreciated.
Asked by Kellygrout
Advice from PTO TodayCraig writes:
It's absolutely legal. Think about large tax-exempt organizations like the American Cancer Society or the Red Cross. They have to keep large amounts of money invested from year to year to keep enough capital on hand to run their organizations. The IRS isn't particularly concerned about how you save your money; it's much more concerned with how you spend it (ie in line with your mission).
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