We are fundraising for a new playground and some don't want to use PTO 501K status to hold the money until needed. The president doesn't want to be held liable to any money given to us by companys we solicit. Would the President be liable? The President & Treasurer names are on the check book
Asked by Anonymous
Advice from PTO TodayCraig writes:
I don't know much about 501k status, which as I understand it is a means for childcare centers that provide a full educational program or serve low-income children to obtain 501c3 tax-exemption. For 501c3s, there's no limitation on holding over money, and many groups do carry over large sums for special projects like a playground. The president would certainly not be personally liable unless, for example, she were guilty of some criminal act in misusing the money. Is your group insured? Director and officer insurance would protect you, as would the so-called corporate shield if you're incorporated. A brief consultation with an attorney (the school attorney?) might also quell your president's concerns.
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