If your "old" PTA was incorporated as a non-profit organization (501(c)3), then you cannot simply transfer funds to another organization that is NOT a nonprofit.
However, if your oranization was never incorporated in your state as a non-profit (as opposed to being a "member" of the national PTA organization), I don't think you have the same restrictions.
Our state does not allow us to run PTO funds through the school/district accounts unless we are willing to use the same voucher/purchase order system the school uses. In other words, every time we'd want a check, we'd have to submit the bill/purchase order through the district and wait for them to cut a check. Not acceptable when the pizza guy arrives with 42 pizzas for the talent show!
Instead, we have our own taxpayer ID number and do our own accounting. You do NOT have to be incorporated, either as a profit-making venture or as a nonprofit, to have a taxpayer ID in Arizona---though this may differ from state-to-state.
Technically, if your PTA is in good standing then it is a 501(c)(3) nonprofit organization. And nonprofits -- upon dissolution -- need to donate their funds to another (official) nonprofit. If your up and running PTO becomes a 501(c)(3) of its own, then you should be fine moving the funds from the PTA to the like-minded PTO. Some state PTA bylaws have specific restrictions, so you might want to check yours.
It's definitely OK to start forming your PTO while your PTA is still in existence. They are separate legal entities. And it's definitely OK to run all your new events through the PTO accounts. I'd be careful not to mix PTO and PTA funds.
Another option for you is for your existing PTA to spend the remaining $$ before you dissolve. You could buy a piece of playground equipment with the $$, if that's what you've been saving for. Then there's no question of who gets your money, as there'll be no money to argue over.
At the end of the day, if you're spending the PTA dollars on the right things (in line with your PTA bylaws -- things for the school, things that promote parent involvement, things that are great for kids), then you'll be fine.
Hope that helps some. There's also a good deal of similar discussion in back topics in this Forum. You might try changing your "view topics from" button (top right) from "past 45 days" to "past year."
Ok, first of all Hello! and thanks for all of the great discussions, they have really helped me so far! I am the new PTA Pres. for this year. We definately want to switch to PTO. This is the way I understand the process. We currently have $15,000 in our account, mostly for playground equipment. Can we form a PTO and distribute information and membership signup at enrollment for only the PTO? We are planing on running our money through the school activity fund under PTO's name. Can we deposit all membership fees to PTO fund and then make a donation of the $15,000 from PTA to PTO account? If we have no money left in the PTA account and we do not send in membership fees to State PTA in September, there is no school PTA so the State PTA can't touch us? Is this right? It seems too simple!
PLEASE, help me! I am 1 of 7 people who show up to any meetings and we are trying desperately to figure all of this out when last year's board left us nothing to go by!
Thank you for all your help! [img]smile.gif[/img]
