Reading Phil and Ira's post reminded me of something that was being discussed by our administration a couple of months ago: groups providing financial records to the administration.
There was a club at the high school that had some funds allegedly misappropriated by a teacher sponsor and it made the administration realize how little they actually knew about the financial status and practices of the groups in the district including parent groups. We haven't heard anything further than that first discussion of maybe starting to request records, but it wouldn't surprise us to have it happen.
I wouldn't be bothered by that request unless the district then started to tell us how to spend our money. The additional audit might be nice.
Just to clarify, the flyers being approved by the school are the ones being distributed through the school to children or other school means. Ones mailed or delivered without using the school do not have such a restriction (although it doesn't hurt from a courtesy point of view).
The financial reporting to the school system and principal are written into the bylaws, but there is no legal (read that as IRS) requirement to do so.
However, it is better to keep the school departments aware of the financials and other goings on to enhance the working relationship between the PTO and the schools, and have another set of eyes to forestall fraud of any sort.
Ours is also an independent 501c3 and so we do not need to ask the district for permission. However, we do need to clear flyers and such with the Principal of the school.
We do need to provide the school disrict a financial accounting for the year, but that is after the fact, and wouldn't include donated items (although it would include cash/checks deposited).
Our group does not do that. However, we are our own independent 501(c)3 organization that exists to benefit the school. If our school board asked us to do it we probably would. I guess I couldn't see a problem with it unless they suddenly wanted to start telling us what we could do with the donations.
Does your group operate independently or under the non-profit status of the school? What reasons has the school board given you for wanting this information?
When you are asking for donations to use as prizes for contest at your school, do you have to notify the local school board and report any donations to them?
