Question: What happens to existing funds if we change to a PTO?

I am president of a local PTA and we are considering changing to PTO. The PTA has it's own EIN and is a 501c3. If we switched to a PTO, would the state PTA board be able to access the funds remaining in our bank account since we are our own 501c3? The balance is substantial so we have much to lose and this could be the deciding factor.

Asked by number3son

Answers:

Advice from PTO Today

Craig writes:
No, the state PTA can't access your funds. They might ask for them, but they can't take them from your account. How easy this process goes seems to depend on the particular state PTA. One way a lot of groups handle it is to start the PTO while the PTA is still running. You'll need an EIN and a separate bank account for the PTO.

The PTA continues to operate, with the money being spent as needed -- quickly or over time, depending on how much money is involved. Meanwhile, any fundraising is conducted by the new PTO and money raised goes into the PTO account.