Question: Money in our PTA account before switching
Hello! Out school is thinking about switching from PTA to PTO. Our funds were raised as PTA we have a large amount of money say 75,000.00 plus. Our fund raisers just netted approx 70,000. this month alone to add to the 50,000. We can't imagine spending all that money. Does it all need to be spent before switching to PTO? How have other schools handled this?
Asked by Anonymous
Advice from PTO Todayegraham writes:
Congratulations on your successful fundraising! Most groups try to spend down their balance before making the transition from PTA to a PTO. Some state PTAs have claimed that the money belongs to them when a PTA disbands, but if the money has already been spent in support of the school, it's not an issue.
Legally, you are allowed to donate the money to another 501c3 organization. If you apply for 501c3 status for your PTO, it will be retroactive to the PTO's start date. You may also donate the money to the school, which certainly has a vested interest in making sure the parent group gets off the ground.
In your case, you may want to consider the timing of a switch to a PTO, and do it after spending the majority of your funds and before a big fundraiser, so that the proceeds from the fundraiser come in after you've made the switch. Good luck! - Emily from PTO Today
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