PTO Today Q&A

Question: Mishandling of money

We had a fundraiser to raise money for an annual big event that PTO gives. The only person whose can write checks is a teacher, so the principal and staff spent all of our money towards our event. Now I'm hustling getting sponsors for it. I don't want any money I'm raising to be deposited into that account for fear that the money will be spent. Can I open another PTO at another bank, so that no one has access to the money other than the executive board members?


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Answers:

Advice from PTO Today

Craig writes:
Most PTOs have their own bank account. However, some groups are required to deposit their funds into a school account. What's highly unusual about your situation is that the account is controlled by a teacher who isn't a board member. Typically, that account would be controlled by the PTO board.

You can certainly open your own account. To do so, you need an EIN from the IRS. You may already have one, but if you don't the application process is simple and quick. Here's a link to apply online:

https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Apply-for-an-Employer-Identification-Number-%28EIN%29-Online

An alternative would be to keep your current account and require two signatures on every check. Checks could be signed by the teacher who currently manages the account, but they would have to be countersigned by either the president or treasurer of the PTO. That's a reasonable safeguard that a lot of PTOs use, even if they control their own money.

Good luck, and please let us know what happens.


Community Advice

Kknkmama74 writes:
Thank you so much!!!


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