Safeguards for Conducting School Fundraisers
We have received inquiries from District Officials around the rules for Parent Teacher Organizations and the respective limits that their PTO/PTA bank accounts can hold.
The IRS requires completion of Form 990 when gross receipts for PTO income exceed $25,000 for the year. Some regulations are specific to certain states, but most of the content applies to PTA groups throughout the USA.
Below we’ve included a link to a site that may help you to find answers to additional questions you may have specific to your state, and we’ve also summarized a few points that may be of interest.
SAFEGUARDS FOR CONDUCTING FUNDRAISING PROJECTS
To protect the PTA and its volunteers against loss, theft and mismanagement of funds, the following procedures must be followed:
- Ensure that the proceeds of the project are designated for a specific purpose that meets the purposes of the PTA.
- Read all contracts carefully.
- Ensure that the contract is signed by two elected officers of the PTA, one of whom must be the president, after the membership has voted to conduct the project.
- Follow the financial procedures required by the State PTA bonding insurance program.
- Ensure that money is always counted by at least two PTA board members in a secure location.
- Plan for the safe-keeping of money until it is deposited in the bank.
- Follow correct financial procedures:
- Deposit receipts promptly.
- Keep accurate, current records.
- Provide treasurer with a written report.
- Use the Payment Authorization Form (Forms 411).
- Pay bills by check (not cash).
- File IRS Form 990/990EZ when gross receipts for all PTA income for the year are over $25,000.
The following link displays PTA rules and guidelines by State.