The majority of parent groups (that participate in discussions here) seem to be separate legal and financial entities. If that's the case, they should be set up with their own structure, ID's, bank account, etc. and they should control their own funds.
However, there are also groups - especially in private or church schools - that simply serve a volunteer arm of the school. The fundraising performed by the parents is on behalf of the school for things like a new roof, equipment, salaries, etc. And the funds are pretty much controlled by the school.
Either model can be "right" as long as everyone understands the expectations up front. That's the key.
[*]As a volunteer I gladly participate in fundraising events for my church - never with the expectation that the committee working on it would control how the funds are used. [*]As a volunteer of a PTO that is very much its own entity, I would certainly expect the PTO would control funds raised from our events. [*]As a PTO, we also help run the school-owned fundraisers, where the funds go directly into the school account.
Each case entails the exact same volunteer effort, but we know from the begining what the roles are and who "owns" the funds. That's what makes all the difference.
It sounds like you are dealing with varying interpretations of the intent at your school. But at least once this set of problems is ironed out, you can try to clarify things for the future.
That is a great question! Anyone got any answers? To follow up on my situation, the headmaster thinks that our tax id # belongs to the ptso. I know that it cannot because it is registered for the school with no mention of ptso, patrent organization or anything! Surely, if it was ptso it would have that in the title, wouldn't it? Help!!!!
Does money raised in the school's name belong to the school? Or does money raised for the school under the PTO's name belong to the PTO in trust for the school?
We have bylaws (that need to be changed) to follow and I think that everyone thinks that we are separate. Everyone that is, except the board of directors. The only organization that is not under the school umbrella is the alumni association. I know in the past that ptso board members have been told that the money belongs to the school, and if they want it they'll take it. Really, it shouldn't belong to the school like that. We are really going to be ROCKIN THE BOAT! I'm so sick of hearing "It's always been done this way". As if I'm going to say "Oh well, then it's the right way". I just want to scream!!!!
LUV MY KIDS gave you some great advice. This past winter i also went to 501 land after finding out that in the state of new york it is basically illegal to share a tax number with the school.It seems to be assumed by the other elementary schools in our district that they are seperate from the school when they aren't. We had funds from a old parent group account that the district took because it was in a "district account". After being incorporated and tax exempt the district doesn't bother us at all because they see us as our own enity. Yes somewhere it might haunt us being our own "thing" but we as legal as we can be!! That's what you need to think about...of course you sound like you will get some grief from your district but point out the way it is suppose to be done. The IRS and state adviced me to get our own paperwork. Good luck!!
"When you stop learning you stop growing."
We also shared a tax id with our school, however they didn't have the control over the funds that yours appears to have. In researching, I found that it wasn't the correct way to do things according to the IRS and the new school district business manager was uncomfortable with it also so away I went to 501c3 land. First we applied for our own tax id number--a very simple process. We then wrote a constitution, articles of association, and bylaws and had it approved by membership. Then I filled out all the paperwork to apply for our 501c3 non-profit status. We are now a non-profit organization of our very own, instead of being under the school's umbrella. Mind you, this may not eliminate the problem of the school trying to control your funds, but it will get you all "legal". The control issue is something that will have to be hashed out by your membership--how much are they willing to accept and the powers that be in your school--how much are they willing to give up. A session with your board and the school representatives is in order to determine what is expected from both sides and how to get structure put togethter that everyone can live with.
