Sorry about the subject title - I'm at a loss for what else to call it. Hopefully someone out there can help me with this - We are a preschool/special needs school. We were part of a bigger school but due to the way our town is growing we had to move to a new location for more space. We are currently still part of the PTO of the old school but are forming our own PTO to start with the next school year. The school has been doing it's own fundraising this year and the principal has been taking the money and putting it into her school account and then spending the money the way she wants to. She is over budget for the year so she is using this money to fill in the gap. I am in the process of getting all of the paperwork done so we can be tax-exempt, etc for next year. As soon as I can get an EIN we will be setting up a bank account. Now she decided that she doesn't want to "go through all of that". She just wants to have us give her the money and she'll put it into the school account. I've been on the PTO for my older daughters school for 2 years so I have an idea of how things should work (at least for that school). I guess my question is - is this legal? I have a hard time trying to push fundraising, and supporting the fundraisers, if we have no control over where the money is going to be used. Next year it will be even worse as they have cut the school budget by over a million dollars. Thanks for your help!