Sharri - I'll second Mum and pals. The IRS doesn't care if your money sits there accumulating interest, whether or not there's a special purpose assigned to the money. (assuming your PTO is filing its 990/990EZ each year as a registered 501c3). But your parents should. If the money was raised specifically and publicly to fund computers, you probably have an implied contractual obligation to spend it that way (tho I'm not an attorney nor an IRS agent). But if the money is just unallocated surplus that's been quietly accumulating, then you have an opportunity to spend it as your members see fit. I would add you have a responsibility to make sure your members know it's sitting idly by...and give them the voting opportunity to direct it to some specific purpose.
Sherri after eight years can my group have that eight thousand dollars? I am not quite sure but as a non proifit I believe you can have money earmarked for projects. Someone like critter would probably be better, but why has this money not been spent. Our parents would not particpate on fundraising if they knew that the money was sitting there,,,we start the year with maybe $500.00 and end the year with maybe $500.00. You need to spend that money!
"When you stop learning you stop growing."
Sherri D;127133 wrote: I ws told that as a non-profit org. we are not allowed to keep money in a saving with no purpose for it.
Who did they say wasn't allowing it? The IRS? If that's the case, you should ask them to show you the part of the code that says that. They won't find it.
But, um, why would you have $8,000 for 8 years with no purpose? You don't say how much your annual budget is, but that sounds like a lot of money to continue to carryforward year to year without some plan in mind (like computers or a playground).
we have 8,000 in a saving account separate from our checking acct and we have had it there collecting 1%interest for 8years. I ws told that as a non-profit org. we are not allowed to keep money in a saving with no purpose for it.
Is this true?
And if it is, can we alot it for something specific like (computers) in 5years. or can we alot it for something general like cultural art and enrichment(which means what ever we want). If we alot it to computers do we need to work toward a goal and add to the balance until the goal is met.
Phil,
It is my understanding that if your gross receipts are less than $5,000 then you can operate as a 501(c)3 without having to apply. If your organization is an approved 501(c)3 you do not have to file the 990 informational tax return with the IRS unless your gross receipts are over $25,000 (although it is a good idea to to file the 990 with just the header info filled out if you are below this level).
Thanks, Phil! I was elected because the previous board of 3 years was stepping down, and no one else was stepping up to run. The President approached me, b/c I was volunteering about 3 times a week and room mom to 2 classes. WE (barely) managed to fill the 9 position on the board at elections. I have been reading about filing 501c, and I think it's a good idea. I just haven't brought it to the really pushed it yet b/c I'm already making so many changes the Principal'shead is spinning! =)Thanks for your answer!
