keepsmiling,
pennysue is on the right track. We see these types of questions here on the boards all the time and we always have to ask a couple of questions.
One is whether your group has Bylaws, and what they indicate regarding your Principal's role, control of funds, allocation of funds, etc.
The other is whether or not your group is an independant organization. Most independant groups are registered as a 501(c)(3). Some groups that are not considered independant, nor are registered as 501(c)(3), fall under the school's "umbrella". I believe you see this more often with private schools though...
So, assuming that your group is an independant group, and that your Bylaws do not indicate that the Principal controls the funds, holds the checkbook, or has signing (most groups would not have this); then I would say that your Principal is slightly over-stepping his/her place.
IMO, the way to "combat" this type of Principal is to have a defined yearly budget and use that as the guide for the allocation of funds. If the budget indicates that 50% of the profits from a certain fundraiser is to be allocated to a "teacher's supply fund", and this budget has been approved by committee vote, or by whatever means the group's Bylaws indicate, then that's the situation.
I would say that the next best way to try to fix this problem is to set up a meeting (possibly private, or with just Executive members) and discuss expectations for the year. Be understanding of the financial difficulties that the Principal is under and see if you can become a team to work on this. If he explains what the need is, and you feel that it is indeed justified, then you can inform him that you will bring it up at the next meeting, allowing him/her to "convince" the cimmittee of this need. Maybe there presently is not enough funds available, but you can try to approach this issue by proposing a new fundraiser, specifically for this purpose. Maybe try to get the Principal and/or his staff involved.
This is something that has worked for my group in the past. When the new Principal came to the school and explained that he wanted to try to create a portable laptop cart that would cost around $15K we did so by holding a new Golf Tournament fundraiser. The Principal was actually the chair of the event and used his staff to contact local vendors for donations and such.
Now it is possible that this Principal would not be willing to do this. If not then you could still try to run your own new fundraiser and allocate those funds to this need. If you only raise half of what he/she states is needed, then thaat's what is allocated.
The truth is that most groups control their own funds, but with input from the Principal. But without the Principal's support you will find it more difficult to do all of the good things that you do. Trying to become "partners" is the best way, so how you handle this issue may end up have some very lasting effects.
Good luck,
PresidentJim