For informally run organizations, it's not uncommon to have no bylaws, or bylaws no one has referenced in years. It's not the best way to run an organization with money involved, but it happens a lot. Many times it takes some sort of major problem - embezzlement, problem with school officials, some well-meant activity that goes awry - before anyone sits up and takes notice.
Personal experience talking...while I'd never wish dealing with an embezzlement situation on anyone, it definitely kick starts formalization in a hurry.
As far as the principal being a check signer - that's organizational preference. Most agree the PTO should have a treasurer that controls the accounts and checkbook (unless the PTO is not independent and is under the school umbrella). However, some find having the Principal as a co-signer (2nd signature) to be very convenient; others consider it a conflict of interest. Part of it may depend on your organizational structure and if the Principal is considered a board member/significant stakeholder. I've been involved in both types.
Thanks for your opinion. Our school district has 2 elementary schools with 2 separate principals. Due to the demographic difference(one school generates more money than the other) we have always tried to keep things civil and equal opportunity for the kids by having one PTO with co-presidents and splitting the money 50/50.
My question comes from the fact that you explained that there are 2 Presidents because there are 2 schools. What does this mean?
Is there two sites with one Principal?
IMO, if there are 2 sites, even if covered by one Principal or not, I would recommend splitting into 2 PTO groups. I've seen nothig but problems here on the boards about the two site PTO groups. Split everything down the middle, have one group maintain the exisiting EIN and have the other group apply.
That's you best shot, plus it would be a great opportunity to define new Bylaws up front.
"Legal" is a relative term. Most healthy organizations are run by their bylaws primarily because that's how grown ups have decided to play. PTO's are ad hoc groups for the most part (unless your group operates directly under the school which may give you some sort of appeal authority) and while not following your bylaws can result in complaints to your incorporating state or to the IRS and thus possibly resulting in your loss of those two statuses...for the most part it isn't like there's a "higher" group to appeal things too. It is always difficult when groups just disavow their bylaws and I would think for sure that it would give you the fodder to go to the principal of the schools concerned and cry a "not fair" yell.
Maybe someone else out there knows something I don't but really this is supposed to be about adults coming together under an organizing umbrella to ensure good order and discipline (neither of which sounds to be happening in this particular case).
