I have just started working on a PA Board of our Catholic high school that does not bring our amount down that low but does historically ove funds back tot he operating budget. We have found that the way to avoid this is to write up a simple strategic plan of things you want to accomplish over more than one year and how much money you will need. This gives the school the idea that your funds are targeted and therefore will leave them alne. For example, we started a fund to patch our parking lot or to buy new uniforms. We made an agreement with the Prinicpal that all those funds remian with the PA until there is enough to do what we wanted. He then is able to show that to the school board and they were fine with it. They can then adjust their budget for next year so they do not count on that amount.

I am the President of a small Catholic school's HSA. We are in the same boat as you. Our contributions directly help keep the tuition as low as possible. Yes, it would be nice if tuition paid the salaries and light bills- but since this is about private schools, we do have to operate differently than public schools. I agree with Tim, there are probably things we don't know about school finances. We do, however, leave 40,000 in our end of year checking account for the next year (do you have by-laws approved by your principal and pastor? Our's state this.) We raise over 50,000-150,000 every year (we have a bi-annual gala every 2). Communication with our principal and development office is crucial. But without HSA our school would not be what it is. We are blessed we have such great parental support! Also, our HSA President serves as a voting member of the school board and is on the finance committee, leaving us re-assured about the use of our funds. Again, without our financial support, tuition would be a lot higher and therefore, forcing families to not be able to afford our school. So while it would be more fun to buy ice cream for the kids, or a fun assembly, the basics are more important. That's not to say it doesn't get frustrating being obligated to raise X amount of funds each year. But it's either that, or raise tuition. You're in good company!

Legal? Assuming you're a small Catholic school, I'd say definitely. Wise? Guess that's another question. If the small Catholic school is struggling to pay its bills and stay open and if its parents can't afford a tuition bump, then your Principla may be doing all she can to keep the doors open.

But if it's more just a standing habit of the school, then I agree there likely is a better way to operate for all involved.

The key thing here -- like many answers -- si to discuss. Have you had this discussion with your princiapl? Have you shared your ideas with others? maybe there are some financial things you don't know about? or maybe they'll lvoe your ideas, if you present them. Not sure.

But legal? Yes.

Tim

This will be my second year as president and i question draining the pto account at the end of the school year back down to $500, with the money going to the schools operating funds. Schools should have the light bill and summer salaries covered with tuitions, and since i have been on this forum, have some great ideas on how to spend the momey in the spirit it was raised - but, is what my school been doing legal??65978