If this system is working, I wouldn't necessarily rock the boat. It does mean that in a technical sense your group isn't independent -- you are part of the district you are serving. And the money belongs to the district, not to you. However, the district is giving you control of the money and independence in deciding what you do. It doesn't seem like you need to establish yourself as an independent entity at this point. The reason to do it would be to protect your money, in particular, in the future. If it's in your own bank account and not one with the district EIN, the district can't just take it from you. If you start having issues in the future -- a more contentious superintendent, for example--it would certainly make sense at that point to get your own EIN and apply for tax-exempt status from the IRS. At the moment, you're functioning under the district's tax-exempt status.
- Craig
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