The biggest advantage is you will have your own corporation, and can vote and make decisions with the board on where you want the money spent. You can apply for grants to fund your playground equipment being tax exempt. I suggest you get bonded, tax exemt, and tell your principle you are going to do this to protect the childrens funds.
I know there is a lot of advice on the "infamous" 501c3 on the forums. I am the treasurer for our PTO and we have decided to apply for the non-exempt status. The last few years have been pretty trying, considering we have had 3 different principals, and all our funds have been under the school's umbrella. One principal did some "creative" financial bookwork , then resigned, so all of our funds have been "frozen" for the last two years. They have finally finsihed the audits and we were told we have "x" amount of money. We also, have been raising money for a new playground and have received gift money. All of the monies are in the County Board of Education accounts. We have a new principal now, how do we go about asking/telling her we want all our money in our own account, without hurting feelings, including playground money? Also, she feels there is no reason to apply for the 501c3 status, we should keep the majority of the money in the school accounts. I have talked with an accountant and she advises we should be separate from the school. What are the advantages and why?
