Critter is right... We're just about to review our by-laws for the year and I can tell you that I'll be adding something about this!

PTO4allkids, hang in there!
Kelley
Madison PTO
Mount Vernon, WA

You aren't necessarily the same entity as the school. Whose tax id number was used to open the PTO's checking account? If it is the school's, or the district's, then your group is a committee of the school/district and the financial responsibilty ultimately lies with them (though ethically, it seems to be the PTO's problem, not the school's). If your PTO has its own tax id number, also called the EIN, then the school has nothing financially to do with it. Furthermore, if the PTO has its own id #, but as you said, is not incorporated, the leasing company could come to the officers personally for the money, if they really got snippy. That's why incorporation is so important, even if you don't apply for your 501c3. The next thing I'd do is go to the bank and find out what tax id number is on the account. Your school's business manager could tell you if that's the school's number, and teh IRS can tell you whose it is, also. You might even be able to look it up on their website, www.irs.gov.

Hopefully the leasing company will accept a payment plan that works for your group. Some money is better than no money to them.

All that aside, this is a very good lesson for all of us. Our bylaws are silent on the issue of contracts/signing. We need to take a look at a policy.

Good luck.

You are the same entity as the school, and you need to go higher up than the principal if she is saying she doesn't want to get involved. Contact your superintendent.

Thanks for the encouragement. I will try and keep you guys posted on the outcome.
I am new to PTO as President this year. We have gotten this year of to good start. At our first PTO Open House I laid it all on the table and explained that we did not have sufficient records provided to us, etc. It mad the previous board furious but I gained the trust of several volunteers and the school staff. I have discussed the issue with our Prin. The response was something to the effect that she knew nothing of the lease and could not get involved. Without us being incorporated, are we considered the same basic entity as the school???

I would think that since you aren't a separate entity from the school that the school is actually responsible for this. Not to pass the buck here, but I just don't see how a contract like that can be legal. I would get the school, superintendent, and district involved in this--it isn't just your responsibility. Plus, leaving a signature area blank seems negligent on the part of the leasing company as well. Turn it over to a higher authority--they have legal experts that can figure this mess out.

This situation stinks for you! I honestly have no idea what the legalities of this are. I think the only way you will know for sure is to consult a lawyer who can look at the contract agreement and your organization to see if you can be bound to it. Certainly you do not want to lose money consulting a lawyer, but perhaps you have a parent at the school who is a lawyer who can look at it for you or possibly the Lawyer for the school/BOE could look at it and advise you.

In the end if you find out that you are bound to the contract then I would try to work out some type of payment plan with the company. Even if they turn it over to a collection agency you can work out a payment plan.

Please keep us posted as to what happens as I think this is a very interesting topic to see what are our groups can be bound to by someone who signs a contract and shouldn't.