Question: Money Carried Over
Are there IRS limits to how much money can be kept in our PTO bank account and carried forward year to year??
Asked by Anonymous
Advice from PTO TodayRose H writes:
There's not a specific dollar amount limit from the IRS, no. What you want to make sure of is that you are living up to your group's mission, which is about supporting and funding programs, projects, and events for your school. Holding onto a giant amount of money goes against that general principal. Many groups carry over enough money year to year to help get started up each year. So, they hang onto enough money to cover welcome packets, a welcome back event, and other back-to-school activities. (This means your group doesn't have to immediately do a fundraiser to kick off the year.)
Answer this question: