We went from a PTA to a PTO two years ago, and the District PTA did come and take all of the permanent PTA files and PTA tool kits. The district rep did ask about PTA money, but there was none to talk about and the account was already closed. There were a few items that were considered PTA property (ice chests, a nacho machine, a digital camera and other supplies) and the district rep did not take those.
This rep was a little annoyed we did not properly "wind-down" (dissolve) the unit. She asked why there wasn't a meeting to discuss dissolving the unit, and I told her there really was no PTA board at the time to conduct a meeting, much less properly wind-down the unit.
A few months later, we received a letter saying the PTA unit was dissolved.
But, each state is different so try to follow your state's guidelines for dissolution as close as possible.
Couple of details/thoughts on PTA "taking your money":
1. Most importantly, I've spoken to hundreds if not thousands of groups that have gone through this process to one degree or another -- using all different kinds of approaches to the money -- and not a single one of them ever lost a penny.
2. Push come to shove, the dollars in your local checking account are controlled by your local leaders. Who's names are on the account as signers? Who actually holds the checkbook? No matter what PTA says, they can't get a dollar without both of those things or cooperation from the folks who control those things. I've never seen it come to that, but it's relevant as a last resort.
3. I basically agree with the posters who say you can just transfer it (provided the new group is 501c3 with similar goals), and the groups I've seen do that have wound up fine. That said, spending down your funds to at or near zero is so simple and so clearly takes away any debate that we often recommend that route as the cleanest. Nothing to argue about if there's nothing there.
jcarar - this is a minor clarification, but some people read these postings very carefully and might be confused...your new group's EIN, also known as the tax id #, is FREE from the feds. Maybe you're referring to a state incorporation fee which could be $30, or a fee from an outside advisor, but technically, getting an EIN costs nothing.
We had the same problem with gifting the money. We decided to avoid aqny problems, we gifted the money to our principal who in turn cut us(the PTO) a new check for the same dollar amount. We were told by our county PTA reps that they are entitled to take away our PTA money because we raised the money as PTA not PTO. Just be careful how you handle it.
Can you hold an executive meeting a little before the pta rep shows up or hold a meeting a few days before your regular meeting just for this.I am sure that the rep's job is to talk you into staying. Or let everyone know before hand about the acct. & $$ & when its time to bring it up that you need another acct for savings. What you do with your $$ is none of their business as long as your fees are paid.Even though you belong to a pta, you are still your own group in a way. pta/pto...it depends which one is right for your group. My pto would never be able to afford the dues since we are a small group & believe the money is better spent at 'home'. Good luck!!!!
I am thinking of opening an account for the PTO. We would need board approval to spend the $100 for the minimum balance to do so, and to spend $30 for the EIN. At our next board meeting, there will be a PTA rep there (they say it's unrelated to the PTO issue, but I know better). Is there any risk in bringing this up to the board while the rep is sitting right there?
