I doubt they are a 501(c)(3). The IRS would never have approved their bylaws without a dissolution clause. It's one of they key checkpoints during the application process.
Since you are a seperate organization the principal should have no authority to dissolve you. The authority they have is to not allow you to operate within the school building.
Lets see what your standing is and how your group was set up. If possible I would spend every last penny buying things for the school and the kids so that no cash is actually handed to the principal.
Our lovely principal has just informed us yesterday that she has dissolved the pto at our school. We have had many problems with this principal, starting last March.We have tried going to the school board with our complaints and concerns, but I guess that are not interested in what we have to say. Our superintendent along with our principal came to this decision without any discussion or meeting with any pto board members or officers. WE know that she can not get her hands on the money right now, she is not on the authorization card. But we would like to know what we can do with this money? It doesn't automaticly go to the school does it? It does not mention in our bylaws what happens if the pto is dissolved. So we would like to know what right we have to say where that money goes. Any HELP?!!! Thanks