With a modest amount of careful planning, the state PTA should get none of your money. Despite all the talk and threats to the contrary, I've yet to hear of disbanding PTAs losing loads of cash. The money has been raised by your school/kids and fo your school/kids. Push comes to shove, there's be a heck of an argument for keeping the $$ local.
That said, you can avoid the issue altogether by spending down funds before the final dissolution. That's the best advice.
You need to check your bylaws on the wording for what needs to be done to dissolve your PTA, as a first step. I know that here in Virginia, there is a whole specific section of the bylaws that dictates how a local unit should be dissolved.
As a local unit, you are really a part of a much larger (state) group, and your assets do therefore belong to the state group. Per IRS regulations, you are required to distribute your remaining assets to another 501(c)(3) group, which would most likely include your school, but may not include your PTO (depending on how/if it is set up--part of the reason many recommend that you get your PTO going before you dissolve your PTA). In VA, the bylaws are written such that upon withdrawal of a local unit's charter by the VA PTA, the assets are surrendered to the Virginia PTA. I think it's safe to assume many states have similar provisions. So, it would be best to spend down your cash prior to having your charter withdrawn. Of course, if you have a huge cash balance, because (for example) you're saving for a playground, there are other considerations, but that's the gist of the issue. Again, check your local unit bylaws and state bylaws first. Those should be readily available to you.
DITTO! I will be PTA President in two years and by then I (and our PTA Board) are hoping to be a PTO - but we have ALSO learned/heard that PTA can take all (or half) of our money?
I am FRANCTICALLY searching for a STEP by STEP how-to list for PTAs to get out and become PTOs.
The costs, the steps, the legal fees, problems....someone let me know - I'll be watching this site, but feel free to email me at This email address is being protected from spambots. You need JavaScript enabled to view it. THANKS!
No, the new PTO hasn't formed and I'm not sure yet who the new officers will be because those of us who have been the PTA (basically 2 members have done all of the work for the past 6 years) are not wanting to take on the task. We do still have a few months before the new year's dues would be due to the state in which to organize the new group though.
I belong to PTA, but am fed up with it. We want to change to a PTO, but we are unsure of the best way to go about it. What are the financial obligations we have to PTA? Doesn't the money we have in our school PTA account belong to our school?
