I think Tim (Rockne) makes a good point about the timing. I'm a big proponent of the PTO being seen primarily as a volunteer organization, not a fundrasing machine.
Unfortunately, what we are seeing around here is that fundraising is becoming so competetive with the many schools and levels of schools that the primary concern of timing is to beat the others to the punch.
In my daughter's middle school, we recieved the first school fundraiser, the band fundraiser, and school pictures all in the first 2 weeks of school - right on top of a ton of other expenses. They understand the issues, but with more than a dozen different groups on campus doing multiple fundraisers, they can't afford to wait.
In elementary school, we wait until after everyone has settled in and run it the second or third month of school.
I strongly recommend carrying over enough money so that your first month each year doesn't have to be focused on fundraising.
The challenge/goal for so many groups is to get more parents involved, and what's the first thing many parent groups do in August/September? Hit parents up for bucks.
Much better, in my opinion, to hit parents with several welcoming/family/fun events and services in order to build a strong connection with those parents. Funny thing is that your fundraiser will actually do better once parents have that strong affinity for your group (an affinity built by the events and your spirit of service).
As far as wanting to spend what you earn the year you earn it -- I hear ya. If you make a sacrifice one year only (keep, say, $3000 or $4000 in bank for next years' start-up), then each year thereafter things will work out fairly. Group will start with $3000 that wasn't earned that year and will leave $3000 at end that was earned that year. It just takes one year's work to get on that pattern and it will pay off for years and years to come.
We try to carry over as little as possible. ($1200 to be exact) The school of thought is that it is the parents and students who raised the money, let's spend it on the children. We have the teachers give us a wish list of items they could use for their classrooms, and we purchase items for them or for the school as a whole.
our carry over is only $600. this last year we had $5000 - we delayed purchasing some outdoor water fountains until we saw how our state budget was going to effect the school. i live in california and as you all know our budget woes are still unresolved. these carry over difference have not been a problem for us. so long as you have a purpose in mind,california has a problem with larger amounts. you can probably find out the answer to your specific questions on your secretary of state website under non profits.
Some people are under the mistaken impression that a NON-profit organization must be NO profit. Not true. There's no problem as far as the IRS is concerned with a 501c3 saving money from year to year. It's more a matter of what your group's mission is and how the group wants to see their money used.
Our Bylaws require a minimum of $2000 to be carried over each year, but we historically have carried over $5000-$7000.
If a PTO never dips into that carryover, and never ends the year with less, then we might as well take it out of the bank and stick it under the mattress for all the good it's doing our kids. I think we had carried over so much because no one was willing to be aggressive - too afraid we would "need" the money for some unforeseen situation. Well last year we worked extra hard, pushed the principal to identify needs, and spent our surplus down to $3500. Our budget is a little leaner this year, since we started with less. But we did the right thing in making sure the money is used, not just stashed away.
