It's definitely not an IRS thing. There's no such federal IRS regulation.
I'm not sure about Connecticut, but I doubt it's a regulation there either. If there is a regulation in CT, I bet the maximum is far, far higher than any PTO need be concerned with.
Remember, nonprofits come in all sizes. A relevant example is the national PTA. National PTA has same legal status as most local parent groups (501(c)(3)). National PTA carries over millions each year, and that's just fine. It's smart financial management in many cases.
Nonprofits don't have to spend every dollar they bring in the minute they bring those dollars in. That's a common misconception, and it often leads to groups forever chasing money.
I am co-president of our school's PTO here in Connecticut and also on a committee to revise our bylaws.
Does anyone know what the regulation is that a non-profit (in Connecticut) has to have no more than XX dollars in its account at the end of the fiscal year?? Someone told me that nonprofits in our state can't have over a certain amount and I have been all over the "Net trying to find out what that magic number is and can't seem to. I dont know if its an IRS thing or a Connecticut law.
