Also a new treasurer this year. The school takes care of everything themselves except the big yearly fundraiser. Our PTC is just K-8, Primary, Intermediate, & Middle School, each have their yearly "big" fundraiser and I had to handle all the money and pay all the expenses and then when the fundraiser was over, I write a check for the profits and give the school, as they term it "a donation from PTC." I even spoke with a fundraiser company that handle one regarding who was paying the sales tax and they even told me that was why the school runs the fundraiser through the PTC, so they and the parents do not have to pay taxes...he went on to say that all the schools do this. I even spoke with our school district's business manager and he said the same thing, it is completely legal. Sure does not sound right. The other problem with this is we did a survey this year trying to get info from parents and teachers regarding the PTC. The biggest complaint was too many fundraisers and they specifically names the 3 main yearly fundraisers. Everyone thought PTC chose the fundraiser and then never stated what they were for, just to raise money for the school. We expressed these views to the principals and the next big fundraiser stated it was for playground equipment for the new school we are to have in the fall of 2006. Plus they ok'd us to put in our Newsletter that PTC did not choose these fundraiser, that we merely helped them with it due to tax reasons. The principals were quite okay with this, so it must be legal.
here is some clarification of my earlier post regarding school and a PTO operating under the same 501(c): an example would be, the school hosts a 7th grade night at a local club. The kids pay to attend and we pay the club. In this instance, the money the kids pay is by check and it goes into the PTO's account and the PTO cuts the check to the club. A similar arrangement is in effect for overnight field trips, etc. The school requires all 6th graders to attend Natures Classroom which is a 3 day event costing a few hundred dollars per child. If 300 kids go, a lot of money is going into our PTO account and we pay the bill. Does this help?
The school should not be funneling any of their money through your parent group. That does not make any sense to me either. If I were you, I would contact a local accountant who is familiar with non profit organizations and ask him/her their professional opinion of your situation.
According to our school district's financial person, the school/school district is tax exempt, but not under 501(c)(3). I'm not sure what code they fall under. Supposedly they cannot be 501(c)(3) if they are a government entity, which our public school is. But it's strange to think that any school may have to funnel their money through their parent organization...there is something about that that doesn't sound quite right.
I am the new treasurer for our PTO and we are a 501(c) organization. My question is: does our school need to have its own 501(c) designation or can the school's money (for fieldtrips and enrichment activities) be funnelled through the PTO's checking and savings accounts? If it makes any difference, I live in Massachusetts. Someone told me that in my state, schools are not allowed to seek 501(c) status and have to route all their money through the PTO. ANy guidance would be very much appreciated.
