I definitely don't think it would be fraud.

And I do think there's a fairly easy, good happy medium here.

It's a really good best practice to highlight what you're raising funds for. It creates a much better connection between your group and your cause and your supporters. And specific (playground, new computer lab, 22 fieldtrips) is better than general (support our PTO).

But technically, I think you can be specific without overlly restricting yourself.

You can talk a ton about how your big goal this year is the new playground. You can mention that on your fundraising flyers. You can have posters about that and the big thermometer in the school lobby. You can do that without saying "all funds will go towards the playground."

There's also a big difference between a pledge drive ("would you please donate $500 towards our playground?") and a traditional fundraising sale ("would you buy this $6 roll of gift wrap?). The donor in the first example likely expects that she is funding the playground and only the playground. The buyer in the second it's not nearly as clear (and there really isn't a "donation" anyway...).

I believe your worry is misplaced if your doing typical PTO activities.

If you are doing a major direct-pledge fundraisig campaign, then you should likely do some homework and get bids ahead of your pledge drive to know just how much you need.

Tim

If you need to state a purpose, just leave it vague enough to give you some flexibility.

I'd stick to whatever you'd publicized, though.

I think you may be trying to hard, if your goal is to raise 10,000 and you raise 12,000 but your project is only costing 10, does that mean you have to find a higher quote in order to spend every penny on that project. How many groups actually do that, I think it is common pratice that as long as you spend most of it on what you said then your parents should be happy. If they aren't they need to do pto and get a reality grip! sorry...if this sounds harsh but we are volunteers doing the best we can!

I am thinking that what you read as far as Minnesota law is more based on donations involving cash, pledge drives, company donations, etc. I see a fundraiser like cookie dough, catalog, pizza, as a totally different situation. just my thought...anyone??

Couldn't you solve the problem by adding a simple line explaining that any extra money collected from donations would be spent on other PTO activities (list out a few things that you do spend money on like books, field trips, assemblies, etc...)?

Thanks for your input.

I've been searching the net and have so far found a list of legal responsibilites on a web site for Minnesota council of nonprofits. Although I don't live in Minnesota, I'm sure Nevada would have something similar. It reads "comply with the terms of donations; promises made to donors are legally binding. Funds given for specific projects or programs need to be kept separate."

It would seem that if we send out flyers that funds raised were to be used for computers then ALL monies raised, including the change, would at some point in time have to be used for computers. The flyer would be legaly binding, at least in Minnesota.

If anyone knows about Nevada laws regarding this please give me some feedback. Our account was never set up to keep track of each fundraiser activity seperatly and I have know idea what monies would be considered as general funds and what money should roll over for the next year for specific projects. I've been trying to do the audit, in five years it's never been done.

When we have fundraisers, we tell parents that the money raised will be used for programs, activities, field trips, and treats for the children. I'm not sure about legal issues, but I don't see the harm in the PTO changing their minds regarding use of funds. As long as a letter goes home explaining the change.