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Has anyone had this happen?

15 years 7 months ago #145602 by LeadingtheWay
Our principal tried to strong arm us into allowing the school store in one building be a fund raiser for a certain group.

This group invites all, but every child doesn't join, therefore it's not to benefit every child. That is one of our guidelines. We don't give separate money to band, orchestra, save-a-pet club, K-kids, etc as they are clubs and groups and should either raise their own funds or require a fee to participate to cover the expense.

When we informed her that we'd be happy to hand over school store, as it's a lot of work for little money, and mostly there for the benefit of the children, but that we wouldn't be able to guarantee her volunteers to run the store, order the supplies, price everything etc. That the group that would be benefiting would basically be on their own, she changed her tune quickly.

Student council, just like senior class, band and other clubs within the school don't have to have their own 501c, they can usually run their fund raisers through the school's activity fund. They should have their own fundraiser unless your membership votes to support them with your fundraiser.
15 years 7 months ago #145599 by JHB
Replied by JHB on topic RE: Has anyone had this happen?
I think we do need more information.

1) Does STUCO stand for Student Council?
2) When you say "we must pay them a percentage"... pay whom? The teachers/school people or STUCO?
3) Have you been told what the purpose this new rule is?

If they are trying to unfairly control your group - of course I don't support that. But, for example, if they are putting in new guidelines that any schoolwide fundraising will be done as a 50/50 partnership with benefits and responsibilities on both sides, that might be different. Are they trying to consolidate the areas of fundraising? If your proceeds are likely to be diminished, are their expectations of what the PTO provides also decreasing.

At our elementary, only 2 big sales fundraisers were allowed each year. Initially the PTO owned both. Later, the school took over one. The actual process didn't change much. For both, parent volunteers still organized it; classroom teachers still promoted sales and collected money. But the reasons behind the changes were explained and we were all on board. Frankly, it wouldn't have been much different to have had both co-owned with the proceeds split. A few years later, the district took over both fundraisers, asking PTOs to focus less on fundraising and more on volunteers, parent involvement, and communication. The money earned still went for a lot of the same things - field trips, extra supplies. It wasn't that they wanted "our" money; they had reasons for wanting the PTO role to change. Because we all understood the plan - and because the kids still got what they needed - it all worked fine.

Can you tell us more about your situation?
15 years 7 months ago #145596 by PresidentJim
I think I would have big problems with this...

First you indicated that the "district" came to you and told you about this. Who exactly are we talking about? Was this something that was brought up at the citie's School Committee? Is this from the School Superintendant?

This would be the first question because it will indicate how "real" this request is. If this is via the Superintendant or even the School Committee, then I might recommend reaching out to your school's Ward member. Ask for their input and see if this was done officially and/or was already a rule in place. See if you can get in it writing as indicated in the above post...

Next, understanding that STUCO means Student Council, I would want to know how exactly they could have funds raised via a fundraiser, since more than likely they are not a 501(C)3 organization. To be able to raise the funds without being required to may taxes, as I understand it, the group must be non-profit and the 501(C)3 status often provides this. A Student Council is usually an internal school group and does not have non-profit status...

Next, did they tell you who to give the money to? Since you indicated that the said spreading it our among the classes, does this mean the teachers get the money? That would be a big no-no I think.

Now if they indicated that your group needs to allocate funds per class, then that would be a bit more acceptible, but I would still investigate it is I were you...

Also, what does your Bylaws indicate about funds? For example, my group's Bylaws state that the Executive Committee decides how to spend the funds without any outside influence.

Good luck,
PresidentJim
15 years 7 months ago #145585 by gjcoram
I think, actually, that giving a percentage to volunteers makes them not volunteers any more, and you may be subject in those cases to a tax on "unrelated business income" according to IRS guidelines. And you may have to withhold income tax, etc.

It might be OK for a teacher who helped out to get extra PTO funds for classroom expenses, but I'd insist that the district research the tax implications of paying "volunteers" directly.

What does STUCO stand for? (Student council?) Does that organization need funding, and maybe you could propose some joint fundraiser where they'd be doing their share of work? Can you explain to the district that your budget is voted on by the members and the members won't want to help with a fundraiser where the money is diverted to a second organization where they have no say on the allocation of funds? I mean, as a hypothetical, can the district see it would be bad if STUCO decided to use their "share" to run an all-school program that they thought would be fun -- but that 90% of the PTO thought was a poor use of funds?

I'd start with a conciliatory approach with the district, though, since I think they probably have the ability to ban you from the building (eg, you can't pass out your cookie dough order forms on school grounds).
15 years 7 months ago #145584 by Jewels3
Is it only the cookie dough sales or are they going to attach this stipulation to some other fundraiser if you choose to abandon the cookie dough project? If it is only the cookie dough -- why?

While the part about paying a school teacher/staff for his/her time is logical, I would ask "them" to see where it says that PTO's in your district are obligated to split your profits from fundraising. Let's see something in writing. AND, while you're at it, start making calls to the PTO President of every other school (of your grade levels) in your district and discuss their experiences with this.

Yes, it's okay for a board member to conduct business with a school or with the PTO for profit. Your PTO may wish to stipulate in your by-laws that, in the interest of propriety, the PTO seek at least two competitive bids for products or services prior to approving the expenditure. Your school probably already has this caveat, or some other purchasing procedure, that will guide them when purchasing -- whether with a PTO board member's business or with any other business.

And, while we're on the subject, it's not prohibited (per Robert's Rules of Order) for the PTO member to vote on the motion to approve purchases from his/her business. He/she may wish to abstain from voting on such motions, but is not obligated to do so.
15 years 7 months ago #145573 by Dawn McKnight
Hi we are a brand new school and we are a PTO. Here's my dilema, our district has come to us and told us that we have to split our money 50/50 from cookie dough sales with STUCO. They divide it out among the classes. They also told us anytime we use a student, staff member or any school person to volunteer we must pay them a percentage. I am all for giving a percentage to volunteers, but to give 50% of our fundraiser to STUCO is ubsurd, especially when we are going to allocate the money to being spending on each grade. How are we suppose to have any money to do anything else for the school if we are having to split our fundraisers? Does this make any sense and has anyone else gone through this with their district?
Also is it okay for a board member who has their own business to make things for a school for a profit???
Thanks for any and all suggestions.
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