Continue to stay involved with kids via volunteering in the classroom when possible. I just love when the PTO officer's kids go home and tell their Mom's how much fun they had in class with me.
Continue involvement with the PTO by attending meetings (they will be nervous with you just present even if you don't say much) and chairing/co-chairing events. Make sure someone is chairing with you - preferably a parent newer to the PTO. It sucks and certainly isn’t fair but the quickest way to change the rumor is to have someone spout rave reviews about you. Make sure all items are inventoried and signed for if you hand them over to anyone – you keep a copy of everything signed.
As you work at events you will have the opportunity to talk with parents not yet involved with the PTO. Draw them into the PTO via co chairing with you next time etc. When another officer position comes up run with new PTO parent backing on how great you were with them on the events you were involved with – have support at the vote - you need to run the clique out. Take the high road when working with new parents - do not add to the rumor.
Legal issues; you need to decide how far you want to take the discrimination issues. Realize that any legal action you take can have negative implications to your daughter if the apple doesn't fall far from the tree which I am sure isn’t too far. It’s not fair but kids these days are much meaner than in the past. Perhaps educating the ignorant is your best route?

I still want to be involved in the PTO as a general member. I do want to fight for what is right. I want my daughter to see that it is ok for standing up for what you believe in. I just don't want anything negative to happen to her because of all of this. Yes, I do want to make this right and show them that I can't be pushed around or any of the PTO Members.

Mom#3 - I think the majority of us are still waiting for you to tell us what you want to do; thus your replies have been supportive but with little suggested order of action for you. Do you still want to be involved with the PTO and fight the good fight as a general memeber or do you want to only volunteer in the classrooms from now on and work it from that angle or do you just want to drop the whole thing? Personally I am a fighter. I will not allow our PTO board to disrespect the general members, the kids or the school in any manor. They know when I am involved in a issue being circulated by upset parents it's gonna be a bumpy ride so get those big girl panties on.

Thanks to all of you for you helpful comments and suggestions. The other day, I stopped by the school for my daughters book fair and when I went in to sign in, the people in the office treated me very coldly. Now before all this occured, I did a lot of work in the office and thought I had became friends with the office staff. Since the incident in October, every time I go into the office to sign in; I get the cold shoulder and they don't talk to me anymore. I have thought about what I should do: 1. They discrimminated against me 2. They slandered my name 3. I have always tried to do what's best for the school and the children. I thought the Pto Board worked togehther as a team and should have backed me up. I asked the Pres. and said to her "why do you not believe me" I would never make up something like that against anyone, I don't even know that lady well. What really bothers me the most is I worked so hard to get as many donations as posssible for two reasons.#1. To help the school have a successful auction. #2. and I wanted to show the president that I could still do my job and do it effectively. There are doctors and lawyers that have bipolar and they still own very successful busiess.
I originally had said that I wanted a public apology in the PTO meeting I also wanted to have a post-conference to discuss things that worked and what didn't. Also, with that much money involved, I felt like there should have been a pre-audit and post-audit. I honestly do not feel like she can be an effective President and she should be resign. The by-laws are not being followed, the only thing that matters is their clique. They all go to the same church together except two of us on the board. The President should run the PTO based on the by-laws set forward and when she makes a decision, she should back it up instead of changing her mind. The Principal really blew my mind with her comment. After I emailed her my resignation, she emailed back and just thanked me for all I did. I do know that if there is an audit done, it will not come out right because I was the only one that kept my receipts. I wrote a Policy & Procedure on the correct way to do a silent auction, (after extensive research) and I hope that next year, if they decide to have another one, they will follow my procedure. I gave it to the Parlimentarian for her to review. The next day, I called her and explained to her exactly what happened and told her I was resigning. She said for me to write down all of the events that happened and explain why I was turning in my resignation. Anyway, I did as she said and updated the Fundraiser book along with my Policy & Procedure on doing a Silent Auction. If anyone has anymore advice, I sure could use it. Againg, thank you all for listening and offering your advice.

Absolutley, stay involved with the teachers, staff and all other ways you can at the school. Really bizarre the princ didnt want to see to it that rules were follwed, esp where money involved. Doesnt give much comfort or credibility to onlookers from what youve described. I would definitely steer far away from the group and focus on working directly with your childs teachers. They will know you and support you for who you are. The rumor mongers, doenst matter much what they think or say, there actions speak louder than thier words and it is they that have lost face. The donators might also like to know for next year, how thier donations were handled.

Don't let this keep you from volunteering at the school. Stay involved in the classrooms or helping out in the office. You are important to the school, and they should be lucky to have a wonderful parent like you onboard.