I do have to agree with JHB on maybe a percentage to the new pto group, only because as I read her response I remembered how hard it was to start from nothing and try to plan an event with no funds.
What percentage of the children will go to the new school? And what will happen to the others? Also, how much money is involved? And, lastly what will happen to the furniture and supplies in the old school.
It's not as if the principal is asking for the money for himself (but for the new PTO) and it sounds like at least some of the current children will benefit.
One the key decisions driving this should be what's best for the children. Most PTO's keep a reserve in place for kicking off the following year. I'd think letting that reserve (or a percentage relevant to the % of students moving) would be fair for the new PTO.
As for the funds you'd normally expend - if this weren't an issue, how would you use them? On more consumable events like a party, supplies, or one-time program? Or on things like books for the library or equipment that might be used THIS year by the children, yet moved to the new school and benefit them as well.
Perhaps a party would be a nice way to end, adding a sense of closure. But I wouldn't feel right about just blowing the money to simply use it up. I'd still want the kids to really benefit.
P.S. Yes - donating to the school (to hold for the new PTO) should fit in the IRS rules of donating to another non-profit (unless it's a for-profit school).
The IRS wording for a 501(c)3 is "Under the dissolution of this organization, after paying all debts and obligations of xyz group the remaining assets will be distributed to xyz school/xyz school district. If the school ceases, the remaining assets shall be distributed for one or more exempt purposes within the meaning of section 501(c) 3 of the Internal Revenue code, or corresponding section of any future federal taxes code, or shall be distributed to the federal, state, or local purposes for public purposes."
Now that is for 501 groups, does your group fall under that. Me personally would fight the principal and have a wild, fun and crazy family party to say good bye to the school, depending on how much money you have the sky would be the limit. those families raised it! You could buy each child a shirt, and so on!
The school is closing, a new school is being built and not all the kids from this schools PTO will go to new school. The PTO at the demands of the Principal is thinking of saving the PTO money and bringing it over to the new school that this principal will be the new principal at the new school. He is demanding that the PTO by-laws be changed to let him have the money for the new school's, not even formed yets PTO. The new school will not even open till sept. 2007. Instead of using the money on the children who are in this closing school, he wants to have it for the new school that doesn't even have a PTO yet, that will have to apply for a new Federal ID, and State ID. From what I understand the PTO money has to be spent or donated to anouther PTO to hold in trust untill the new school's PTO is formed. Does anyone know what the legal aspects of a non-profits folding and what they are legal allowed to do with the money?
