Good point ademom74. We did that with a surplus we had this past year. We earmarked it to cover our teacher discretionary fund for the next school year. It felt good to know that our biggest expense was covered, especially since we were going to be trying a new fundraiser and don't know how that will come out.
Maybe your group could use the surplus to cover this year's budget and take a break from fundraising and/or do more free family events, or get something really big for the school.
I also agree with Luv. Families should reap the benefits of the funds they raise as quickly as possible.
You can take any surplus monies you have and 'earmark' it to next years budget. The trick though is that you must vote on which line items you are earmarking towards and this money cannot be altered in the coming years budgets.
This topic comes up many times here on the boards.
There is no cap on the amount of funds a non-profit can hold in their account.
However, my personal opinion is that unless you have some specific project the money is earmarked for it doesn't make sense to keep a large sum in your account. Most families participate in fundraisers to see the money benefitting the school. If it's sitting a checking account, it's doing nothing for the school or the families. We do hold over a couple thousand for start of the year so we don't run into the negative before our fundraiser comes in.
I was wondering if anyone could tell me if there was a "maximum" amount of money that we could keep in our treasury at any one time? Our past president claimed that there was and spent almost the entire amount. I would like to know for sure so that we can clear this up. Thanks!
