Q&A

Money raised from past PTO

Our PTO has been raising money for a large campus improvement for two years. The last years PTO put the remaining money in a savings account and the money is being saved to go towards the purchase. The new board this year agreed not to touch the money and they would add to the project if any money is left at the end of this year. How do I keep that money safe and do they have a right to use that money or spend all the money.
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This is what I have found from my own reading on this issue. The safest way to protect money for a special project is to have the donors specify that their donations are only to be used for that project when they make the donation. Those funds must be considered temporarily restricted and their use cannot be overridden by the board or voting members. Sorry that's probably not much help to you at this point.
- wronkiew
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I would also ask is there any reason to believe that this new board would spend the money in a different way? Hasn't there already been an agreement made that these funds have been designated for the campus improvement project? I am wondering if this plan was discussed at regular meetings. If it was, then the agreement would be reflected in the meeting minutes.
- Rose H
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This might be more helpful. You could dispose of the money now. For example, donate it to the school with the written restriction that the money be used for the campus improvement project. Or, start the project now with the funds you have. In any case, restricting the activities of the future board is going to make some people very unhappy, so I suggest discussing this with a lawyer.
- wronkiew
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