I am currently strugling with the same question (you wouldn't believe how much last year's board has carried over and won't spend, you think $10,000 is alot it's about a 1/3 of what we have!)We spend on the average of $45,000 a year on the school. We have one large fundraiser with 4 small ones sprinkled throughout the year (they raise about $1,000 - 2,000 each after expenses) we have more than enough even with the current threat of budget cuts and layoffs for next year. No one wants to spend because of the loss of money going to the school yet we can't pay for teachers salaries so what do we do with this money we are, in my opinion, hoarding. Even with the increase that is planned for field trips and teacher reimbursements we still have a lot of money left over. How can I convince them that we should be spending? They won't even buy music and library materials because that is the city's job :confused:
Is $10K too much to carry over? That all depends on your group. I would suggest that the important question is not "how much did we carry over?", but "how much did we spend?"
If your average annual expenditures are roughly equal to your average annual fundraising, then you do need to ask how much carry over is needed. How much you will spend before your first significant fund raiser is the real deciding factor. I don't know how big your school is, I don't know what programs you support, I don't know enough to evaluate the validity of a $10K carry over.
If you are raising more than you spend, then you need to stop "saving for a rainy day." This is an issue that is difficult for a many not-for-profit organizations to embrace. My employer needs to retain earnings against future business shortfalls. I need to save money for my future. But my PTA is an organization where the rules are different -- this is not a for-profit organization, we need to spend the money we raise.
If you are spending more than you raise, then the $10K carryover is a problem that will solve itself.
So yes, it is valid to ask why such a large carryover. Beyond that, nobody here knows enough to really say.
We also would consider 10K way too much. Our bylaws specify a minimum of $2000, but we usually try for $3000. Unless we were saving for a specific long-term item that couldn't be purchased in one year, we wouldn't carry more. Our goal is to speand as much funds earned within the year as is possible. We want the students and families who helped raise the funds to benefit from them.
Our Bylaws require that we carry over a minimum of $1000, but it has always been closer to $4-5k. We are working hard to monitor our budget so we spend as much of our current balance as possible before the year ends. This board is trying to get it down to about $2-3000. We really don't need the money right at the start of the school year like some schools might.
Consider this: if your PTO consistently carrys over excess money simply for "comfort", then your PTO doesn't really need that money. You could just as well take the excess and put it under a mattress because you are never going to spend it. I agree that the cushion in the checking account should be spent - we are not-for-profit, after all.
I do agree that $10,000 is to much money. But unless your school needs a big ticket item, it's going to be hard to spend a good amount before the end of the school year. If you want to start a new playground fund or an art project for your school (such as paint a mural) or buy furniture for the library, then my suggestion would be just carry it forward, but plan something good for the beginning of the year.
But whatever you do, don't NOT do Fund Raisers. People get used to not having them and then when the money is needed it's harder to have one. Maybe don't be as agressive, or pick something that doesn't make a ton of money, but you need to keep people used to supporting the organization.
We were left with a good amount of money in our checking account a couple of years ago, the past PTO thought that it looked good in the account. Well the current President and some new parents on the board have found ways to spend down that money. We bought new Socceer Nets for outside, new playgound equipment (balls and such), we brought in extra functions to the school at no costs to the parents. That's what the money is supposed to be used for.
I agree you need to carry over some money, but not that much.
I think $10k is way too much. Unless you have a specific plan for the money for next year. Why don't you poll the teachers/principal and see what they need. How about gym or music equipment? Do you need trees or picnic benches around the school? Have you thought of a weather station? That runs about $5k.
If you do carry over the money, I agree that you do not much fundraising next year. Your parents will get the feeling that all you do is fundraising. I read somewhere that you should think 3:1. For every fundraiser, you should have 3 non-fundraiser events. Can you schedule some speakers to talk about Family issues. Have you planned your last Family Fun night? Throw a big icecream party! Or look into MadScience.org for a presentation/science experiment at your school.
