An Important Year-End Financial Tip

An important consideration as the year wraps up.

by Tim Sullivan


Here’s something we’re asked frequently: “Is it OK for our PTO or PTA to carry over funds from one year to the next? Or do we have to spend all of our money each year?” 

With this year heading toward the finish line, let me tell you: Yes, it is 100 percent OK to carry money over from year to year. In fact, I highly recommend that you do so. The most well-managed groups do this.

It’s a myth that nonprofits can’t carry over funds. Plain and simple. Imagine if you were saving for a huge playground, for example. You could carry over tens of thousands of dollars for many years. And that would be perfectly OK.

And by carrying money over, you can also avoid a real involvement-killer in August, namely the desperate desire to fill the bank account back up at the start of the school year. I much prefer using the first few weeks of the year to serve and connect with parents (and hold the fundraising until a bit later). I think it’s a much better model, and it’s really only possible if you have some money from last year to fund the start of the new year. Give it a shot.

Want to manage your funds better? Try our Finance Manager software program. And check out these additional resources.

How To Close Out Your Financial Year

10 Tips for Handling and Protecting Your Assets

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