Hello Craig,
Thank you for your thoughts and insights. You have given me hope that all is not lost. Making lemonade from lemons is truly a possibility and I shall carry this idea with me as a motivating factor in building the new organization. The existing relationship with the principal is strong and I know she will do her part in allowing the group to put down roots in the garden, no matter who designed it. My hope is that the board above her will do the same. Thanks once again for taking the time to respond! I will follow up.

HI Kidfriendly -- If you are looking for a philosophical argument rather than a legal one, here's mine: Parent groups that are micromanaged by the school are rarely successful. One of the main motivators for people to participate in organizations over a period of time is a feeling of accomplishment. I don't have my fingers on it at the moment, but there's actual academic research about that. What we've seen when schools try to take too heavy a role is that it kills parent involvement. Talented people who would normally be leaders and drivers become frustrated and move on to other places where they feel their efforts make a difference. The group loses creativity and energy, there's little sense of accomplishment, and people stop getting involved.

This classification doesn't mean your group has to suffer that fate. I think the key is to convince school administrators that if they want robust involvement, the way to get that is to create a partnership where they help guide the group and maybe assist with the business aspects but allow the leaders to be creative and dynamic in running the organization. No matter what the legal setup is, groups are most successful when there's a real partnership between the principal, especially, and the parent group. When that happens, the benefits for the school can be amazing.

And by the way, every school administrator knows the importance of parent involvement, but if yours need reminding, here's a summary of the research:

www.ptotoday.com/pto-today-articles/arti...what-to-tell-parents

Good luck, and please let us know how things go.

Craig

Hello Mum24kids,
Thank you for your reply. Our PTA has never had any issues whatsoever with fiscal or other discrepancies so this amazes me. Truly. I believe this is a way to have ultimate control over the parent group, which goes against my gut. Our PTA voted to disband in order to form a new organization that is non-PTA to have flexibility in monetary areas. We didn't realize this would happen. The bottom line is that there is a lack of trust that this new organization will comply with its bylaws otherwise there wouldn't be a need to have this 509(a)(3) (type 1) distinction! What an awful way to begin what should be an exciting, empowering venture. I am disheartened. I have researched for other groups who might also be in this category but have found none. Although I cannot change the distinction to a type 2 or 3 on my own, I am searching for supporting arguments to plead my case. I have extensive experience as a board member (school and pta) and come from an educational background. Comments appreciated! Thank you

For the benefit of anyone who doesn't know (which I'm guessing is most people), this doesn't mean you wouldn't be a 501(c)(3), which is the term most people are more familiar with. You're a 501(c)(3) AND 509(a)(1) or (2) or (3)--the distinction comes from how you earn and spend your money.

I've never seen another parent group set up under 509(a)(3), but that doesn't mean there aren't any out there. All the ones I've dealt with have fallen under 509(a)(2), so they are independent of the school.

So I'm guessing that the school wants to elect and control the Board of the new organization, and then have the new organization give most/all of the money it raises to the school? Why? Was there something that went wrong with the PTA that they are trying to avoid? Is this how other parent groups in your area are set up? There has to be some kind of reasoning behind their decision.

Hello!
I have a dilemma. Our school board has decided that our new parent organization shall be a 509(a)(3) where they would have total oversight of the parent group. I'm sure you all have an opinion on this one and I need some assistance in convincing the powers that be that this is not as positive of an organizational structure as one with more autonomy but has solid bylaws ensuring accountability and oversight. We have 40+ years of solid PTA affiliation and I am uncomfortable with this new organizational design. Please chime in!