Thanks for this info. The old PTO is not being sued at this time. As an active member of the old PTO I was never consulted on this decision so I am looking for legal counsel and have considered the DA once I have more info. Four members of the old board have hired an attorney using "my" funds to keep "my" money protected until a judge decides whether I have submitted enough evidence to reclaim my stakes in the fund. Before assets were frozen plaintiffs took reimbusement of their own stakes-over $6300! Their attorney seemed unaware of this when I questioned him. Bank statements document this. By Laws are "lost" according to the old board. Their attorney says he's looking for them. If all the funds are not claimed by a particular time it is speculated it will all be turned over to Texas. The money goes away. There is no new PTO but I am acting as Interim President until a new organization is started from scratch. Pro Bono counsel is likely if I can find it. Thank goodness Google directed me to PTOtoday!
THe IRS's standard dissolution clause for 501c3 organizations stipulates that in the event of dissolution, the group's assets must be donated to another 501c3. There may be a similar requirement at the state level for incorporated non-profits. Even if your PTO wasn't federally registered, it still operated in the spirit of 501c3 and probably should adhere to the IRS rules.
If you still have open claims against your PTO, how can it be dissolved? Sounds to me like it's still alive, even if there's no school to connect it with. Read your bylaws - look for a dissolution paragraph and/or rules about approving expenditures and who has the right to do it. It's a long shot, but a call to the local police department or state attorney general's office might be in order. Where is all the other money that was withdrawn? Don't you have members? Just reading what you wrote, sounds to me like the old board is doing something borderline illegal.
Wow, what a terrible situation. I am assuming this is a private school as you said "The owner changed the name"? so I am not sure how you are established. Do you have a school board like the Board of Ed?
Certainly there is a lot going on here and I do not know what the details are. Why is the PTO being sued and needing legal counsel? What have the been accused of? Is it the owner of the school who is suing them? What are the individual claims being handled?
Certainly they should not be able to use the money for personal legal fees if they were up to no good.
Without knowing more, it might be wise to see if the parents could get a local lawyer to help you out pro-bono or if you have a parent who is a lawyer who could represent you so that you can protect that money and know the real legal facts behind what is going on.
My child's school administrators dissolved his school and the new owner has changed the name. The old PTO board has resigned and supposedly dissolved the organization,but not before withdrawing several thousand dollars,some of which was dispersed to retain legal representation to freeze funds in an account where a judge is handling individual claims for them. At the final PTO meeting the attorney could not provide the attending parents with ANYTHING but a copy of the documentation stating the funds had been frozen stating he represented the PTO and could not provide legal counsel. What can I do to see our children's money is not squandered on attorneys?
