Question: Abuse of PTO funds
One of our committee chair persons took $6,300 out of our PTO account without the knowledge of the treasurer, vice president and president. She took this money out to pre buy some script cards to sell at a holiday fundraiser hoping that they would sell. These cards did not sell and then our PTO parents had to rally together to buy these cards so that we wouldn't take a loss. Our PTO executive Board has also given our chairperson who is in charge of our major fundraiser over $3,000.00 to buy gifts for an upcoming fundraiser but this amount was never disclosed in our yearly budget that was voted on at the beginning of the year. After researching our bylaws I have found that they have already violated at least 3 bylaws for the $6,300 worth of funds that were taken without anyone's knowledge. My question now is have we as a PTO violated any IRS laws and have we now been placed in a situation where we might loose our 501(c)(3) status that allows us to be a non-profit organization?
Asked by Anonymous