Arghh! Can we close this thread??? This same topic has been posted at least 3 times now in slightly different versions.... I know I managed to answer in at least two of the other threads. Use this one instead:
ally to me it seems like it would be ALOT of extra bookwork for this, if they need to do this WHY is your school itself not willing to do this since they are a federally funded program and through the district. If you are 501 then your group is suppose to be seperate from your district and doing your own books, etc. What is your district response to this? It seems the district would be the first choice so I feel funny with this? I always caution mixing money..find out more.
One other thing why don't they apply for their own 501 if they are always running into this problem? Who is this ran by?
"When you stop learning you stop growing."
It sounds like that school never formed their own PTO and filed for their own Federal EIN number. Which is fine. Our district has 5 elementary schools and each have their own. However, in a meeting with the district's auditor, she said that its easier if we all file under one EIN, but have our own school records seperately under that EIN. (Kind of how the large corporations work their subdivisions of smaller companies.)
It's no problem for you to hold money for them and then pay the bills as long as you set up a separate line item for them on your budget. Deposit the money under that line item (ABC school) and all expenses paid are under that line item, (ABC school). Have the new item created during a meeting so it is on record and all requests for bills be done via form signed by that school representative. Since it is money going and coming only via that one line item on your budget, it will not interfere with the rest of your budget. Do not plan on it when you determine your needed income for the year since it's not "your money".
You then have your paper trail and record of the budget changes as well as all transactions for that school kept separately, but going in & out of your school bank account.
our PTO is a 5013c organization. The program is completely seperate from our school. In one of their emails they had stated that the money needed to be deposited into a 5013c acct. Why they don't have their own acct is unknown. My guess is they are trying to get out of paying taxes on the money
Depends on PTO's tax ID status- does it use schools? or its own? - Bylaws and probably depends on how or what the Fed funded program is (or states $$$ can be used for- some even Title I have broad definetions)
Would need more info- check with district or school legal advisors??
<font size=""1""><font color="#"black"">Liberalism is not an affilation its a curable disease. </font></font><br /><br><font color="#"gray"">~Wisdom of Shawnshuefus</font><br /><br><font color="#"blue""><font size=""1"">The punishment which the wise suffer, who refuse to take part in government, is...
I need to know if this situation is legal or not. We have a program at our school which is federally funding and it is through our district. These children are included in our schools enrollment. The PTO deposited a large amount of money that was donated to this program for a new playground. The PTO then wrote the checks to the builders. They want this years PTO to hold onto some more money and we have said no. Is this legal?
Thank you
