Julie,
I'd look at prior history for your PTO. Just look at
1) things for which you normally expect to need money, prior to the fundraiser
2) things you have typically spent money for that are unepected expenses and the liklihood they will occur.
3) things you need to spend money on in order to make the fundraiser successful.
4) a contingency fund in case things go wrong (for example, what if the fundraiser gets snowed out)
We have had a savings account for as long as I have been involved with our PTO. We have money in a Money Market Account and it earns good interest. Two years ago, we invited 2 area banks to give us the best rate and we made a decision based on what we could get from each bank.
Our problem (which is a good one to have) is that we have more money in our account than we have budgeted for this year. We typically have kept money in the account so that the incoming board has some funds to work with until our fall fundraiser concludes in November. Does anyone have a suggestion as to the proper % to keep in your budget for the following year? It looks as if we need to make some purchases for our school with the money we have. We need some advice on balancing spending and saving.
We purchase short term CD's all the time when saving for larger projects. We also carry all our money in a money market account. We act as a funnel for all funds in the building (bookkeeping nightmare but helps the teachers alot) and make about $3000 a year in interest income from these things.
I always thought it was funny as well but our accountant says it is the only responsible thing to do with as large a balance as we carry year to year with all the holding accounts. We win, teachers get their money much quicker than if the district handled the accounts, parents would rather make the checks to us than the teachers personally. Just glad I am not treasurer.
I am a first year president of our schools PTO. We are a title 1 for we really do not have much money coming in. I would like the put the rubber mulch in our pre-k, kinder playground, but it cost so much we will have to save for it. I was wondering if a PTO can open up a savings account and put money aside and save for the playground. I did not no if this was legal or if or anything like that. Please any help will help me out.
