I agree that the 20% cut off the top sounds odd. Our principal/administration has input on our annual budget just like our members do and she can make requests to us but it goes to a vote and she has one vote just like everyone else has.
We do have some fundraisers, though, that go directly to the school's 'activity' (petty cash) fund. They get a 'take' from Santa's Secret Shop and things like that. A local fast food restaurant started a punch card deal last year where you get a punch for every $5 you spend and when your card is full you get a free meal and your school gets $5 for each card turned in. As president of our group I signed the school up (the principal was out of town so I took it on myself but knew she'd be happy!) but I put it in the school's name and not our group's name so they got a couple hundred dollars in free money at the end of the school year. She called and asked if I was sure we didn't need the money and I assured her to add the money to her fund for things she takes care of. She was pleased and I think it helped to forge a stronger working relathionship between us because she doesn't feel I'm just looking out for our group at all costs. We have a large fundraiser/auction each year that funds our group and we also get money from Box Tops for Education and also the Fun Funds from Gordon Food Services, so we are fine and that couple hundred dollars helped them out and didn't hurt us at all.
Perhaps there is something like that that you could find to offer as an olive branch that you're willing to work with the principal. Also, I agree with the above post where it was stated that really 100% of our money goes back to the school anyway. But I wouldn't be comfortable with the school taking 20% off the top.
All our funds go directly back to the school in one way or another, so in essence, 100% our fund raising goes back to the school. Just about the only thing we spend funds on that don't go directly to the school is our office supplies, which basically go for paper, since we have to supply our own. The PTO has a great relationship with our administration. We work around ways to give 100% of certain things back to the school's library (such as our pie-in-the-face auction at our fall festival). Talk to your administration to see exactly what the expect from the PTO and start from there.
I think the 20% is unusual as well. Since you are just starting up I would sit down with the Principle, as was suggested, and find out what he/she thinks the role of the PTO is. If there is something specific that the Principle wants the 20% for maybe that can be worked into your Bylaws instead so you keep control of the funds. What is your Mission Statement? Get that down on paper and it will help guide you in your choices. Our Principle is a standing Board Member, which is written into our Bylaws, would this help you? If he/she knows they are involved and wanted, even expected to help in the decision making of the PTO it may make him more at ease. As a PTO President myself I would not just hand over 20% of all proceeds to our principle even though I like her enormously. I feel beholden to our parents and families that participate in all of our fundraisers, I need to be able to answer to them when the question arises of how all funds are spent.
We had a similar situation arise at our school a few years back. The administration wanted to have control over the funds that our PTO raised. The PTO wanted to say where the funds went. We were then told there was no need for a PTO and that our volunteers could be more useful doing other things. Our PTO was then disbanded and had a couple of miserable years trying to find our place in the school. We then reformed as a non profit 501-c3. This helped give us our independence and let us control our own funds. It did not help the working relationship between the administration and the PTO. My suggestion is to try to reach a compromise with the administration. Perhaps that 20% that they want from you could be earmarked for a cause that both the PTO and the administration deems worthy. Then as JHB mentions, the school has a vested interest in your fundraiser and can help make it successful. Then you are all working for a common cause. Good luck to you.
I actually rather like this idea. The school's increasingly need money of their own that isn't run through the PTO. The alternative is adding more fundraisers. And if it's a principal-owned fundraiser, then he has the pick of which one, timing, facilities, etc. Rather than compete with your own principal, this actually could work. Plus it gives the school even more of a vested interest in assuring the success of PTO fundraisers. Would I blindly hand over 20%? No. But if it could be a win-win for both sides - then probably yes.
While we may not have seen the percentage request, we have seen increased activity in the schools adding fundraisers or taking over some that had previously been thought of as the PTO's - and not necessarily with any reduced expectation of what the PTO would continue to provide.
I've seen several examples in our schools, but probably closest is our middle school dances. It used to be there were about 8 each year, using school facilities, teachers as chaperones, and the principal as a DJ. Different school groups (including PTO) signed up to run a dance, keeping all proceeds from ticket sales ($12-$1500), concenssions, pictures, and anything else they had planned. When nutrition rules changed and the vending machines were taken out of the schools, the principal HAD to replace those funds. The dances were changed so the school got ticket sales proceeds the sponsor group kepts the other revenue. That then sent 8 organizations scrambling to add more fundraisers to replace the big chunk they had always counted on.
Indeed, the automatic cut seems odd. Our principal gets the "revenue share" from school photos, but that's the only discretionary funding he gets.
On the other hand, he certainly does get to have input on the other expenditures, eg the PTO donated $20k for smartboards at the end of last year, on the principal's and staff's recommendation.
Actually, the 20% sounds bizarre, when I think about the details. Eg, our PTO pays for all the field trips and enrichment; why should the principal get 20% of the money you raise to fund those items? If more than 20% of the total budget goes to field trips, does that mean that the principal has no funds left?
I agree with JHB, you have to talk to the principal about what 20% really means.
