Question: National PTA Requesting Money from newly formed PTO

Our school has just become incorporated and plan on filing for 501c3 status soon. The National PTA has send our school a letter asking for the funds in the checking account, minutes with vote to become PTO and all assets. My understanding was once we incorporated, we were no longer under the PTA umbrella and would stop using their 501c3 status and apply for our own. Can National PTA demand all of our money and assets? Does a member vote need to be taken or a Board vote?

Asked by Anonymous

Answers:

Advice from PTO Today

Rockne writes:
Hi Anon - Kind of need a few more details to help with this one. Sounds like you guys may have done things in an odd order, though that still doesn't mean you should give a dime to National PTA. Technically, a PTA doesn't vote to become a PTO. Rather, a PTA votes to disband. Did you do that? And is that why National PTA is now contacting you. My typical advice for groups/schools that have decided they'd rather be an independent group (PTO) is to do that disband vote last. If that comes after setting up your PTO (EIN, 501 app) and spending down your PTA funds, then there's really nothing to fuss over. Where are you folks in tjhis process? Tim

Community Advice

gmcorriea writes:
Vote taken to disband. Letter sent to NationalPTA saying PTA is disbanding. PTO Incorporated in the State, EIN No.obtained, in the process of spending down funds. National PTA is asking for all books, minutes of members voting to disband, and all funds in account after necessary expenditures. Other schools have changed to PTOs and not one received this type of inquiry.

Advice from PTO Today

Rockne writes:
Hi GM - Yes, your order of operations led to the letter. Much easier if you have nothing before you take that final vote. Key thing here is to make sure those funds are used for their original purpose, which is likely something like helping your school or kids or families. What does your school need? You do control the checkbook and the account and should continue to do so. There is no good argument that those funds shouldn't be spent on/for your school and your kids. Your doing things in wrong order invites the kind of letter you received but shouldn't change who those dollars benefit. Tim