Question: carry over funds
If the PTO board is not filled can the organization become inactive for a year? If so can the PTO money be held in escrow for that year?
Asked by Alvareza
Community Advicefirefighter464 writes:
Our PTO was dormant for a few years and that's more or less what we did. Don't know actual legalities. I would advise, however, that something official be put into writing as to how much $ is there and the official in writing intent is to hold it in account until the reformation of a new PTO. And take any former officer names off the bank accounts and secure the checkbooks. Otherwise, you may find that money gone when PTO reforms. Another option is allowing outgoing officers to call a special meeting of membership--make an all-out effort to advertise this meeting and maybe you will instead find new interest in PTO and not need to go inactive--to decide a good use for the money now so the kids aren't waiting for apathy in PTO to resolve to get some benefit from your funds and fulfill the mission of your PTO. That will take diligence and strong decision-making skills to get good ideas and decide and spend all at once. You will also want to look at any on-going income (escripts, BoxTops, investments?) to secure it as well or else transfer it to some other entity (again with an official in writing sort of thing--do you see my trend here?--that it is temporary until PTO reforms) if you are inactive.
Community AdviceParttimeparli writes:
Remember, the IRS doesn't care if your org. goes "dormant"; your pto still needs to file a 990 each year regardless of income.
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