We, too, have a surplus in our account. My co-pres and I are determined to zero it out this year, though. It was raised over 4 years ago at a large fundraiser and has been sitting in the bank in a sep. account because people weren't quite sure how or on what it should be spent. We feel there is plenty to spend it on - all to benefit the kids. I'm curious though if there are hard and fast rules about this type of thing. It may make it easier if we are challenged about spending it for us to be able to point out the rules and regulations about such things. Any CPAs/tax attorney's out there?

I am wondering if this money is being "saved" for any one project, such as a playground, etc. I would be careful about having too much of a surplus, once parents find out that you aren't spending all of the money and if you aren't saving it for a major project it could hurt your future fundraising efforts. Parents want to see their efforts put back into their child's school, they may wonder why you are fundraising. Now if you are saving it for a major project then i see the surplus, Im not sure but I thought that i read you could save for a few years....not sure

I'm fortunate to have stepped into the presidency of a PTO with a budget surplus, and the high probablity of an other one for the upcoming year as well. We already have the surplus set aside in our savings account, but I am looking for any guidelines, legal requirements, etc. about how this money can be/should be kept until its use is decided upon. Is a trust appropriate/necesary? Are there legal limits on the amount of surplus, and does this vary by state? Any suggestion on how to find these things out without opening a can of worms from any previous boards?
Thanks....