Question: What to do with unsold spirit wear inventory when converting from PTA to a PTO?
We are considering disbanding our PTA and starting up a PTO concurrently the next school year. We will have no problem spending all money in PTA bank account by the end of this school year, however, we have $3,000 of spirit wear inventory in the school store. Is this property of the PTA and how do we sell it and then "donate" money from sales to the new PTO? Can we transfer the inventory to the new PTO? THank you !
Asked by Anonymous
Community Advicemum24kids writes:
It is the property of the PTA. It's a bit tricky because you have to transfer your assets once you dissolve to another organization that is a 501(c)(3) at the time you do the transfer. When are you going to actually dissolve the PTA? Most, if not all, PTA membership years run from October 1 to September 30. So, not sure how long it would take you to run through the inventory, but one idea is to try to sell it all at the beginning of the next school year, and then give the proceeds to the school or spend it on some beginning of the year event. Or, I guess before you dissolve, you could get the members to agree to transfer the responsibility for selling spiritwear to the PTO and just give it to them (or sell it to the PTO for a dollar and take a loss on it). Technically, it's before you dissolve, so I guess it's within the letter (if not the spirit) of the law. But really--what is the state PTA going to do with a load of your spiritwear??
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