For the particulars about IRS issues, I would ask for advice from JHB or Critter. I am not as familiar with them as they are. You now know pretty much what I know on the subject...lol... I would seek their advice on what to do when someone doesn't abide by the bylaws as well. I just want to caution you that if the 'someone' is the principal, you have to tread lightly. I still stand by what I posted earlier:
Also keep in mind that if your group is meeting in the school, using school resources and/or students to make the money or promote events, this does give the principal a say in how things are run. Again, our principal would never utilize that power, but she has it nonetheless.
Holy moly! At first I was bummed that we didn't know we could go under the school's umbrella when we went about setting up our group, but the more I read I'm glad we bit the bullet cost-wise and did it ourselves! We took some flak, but when our superintendent told us we were smart to do it that way it made it all worthwhile.
MetzyMom--if a PTO uses the school's EIN, but has it's own bylaws, can it incorporate? Or does it already have that status with the school's nonprofit status? When a PTO has bylaws, what do you do when someone won't abide by them?
My question is this: Is your PTO operating under the school umbrella or is it listed as a separate entity by the IRS? If you are not listed as a separate entity, with your own EIC number, then your group belongs to the school, which belongs to the principal. Our group is not separate from the school. I keep telling them that the principal could and is entitled to any monies they make. Our principal wouldn't do this, but she could.
Also keep in mind that if your group is meeting in the school, using school resources and/or students to make the money or promote events, this does give the principal a say in how things are run. Again, our principal would never utilize that power, but she has it nonetheless.
The problem that you have is the Principal. Knowing that your group is raising funds for his/her school and they want to make sure they decide where it goes. The Board members are responsible for adhering to the current bylaws and any changes to the bylaws should be in accordance with current directives stated in the bylaws. To do things correctly, any actions taken by the "PTO" as a group should be voted on during a regular meeting. Whether you're raising money, spending money, changing the bylaws or making the simplest of decisions, it should be done as a group and not by any individuals, especially someone outside of the PTO. As a board, the decisions are yours to make and not the principals. Make sure that you follow your bylaws and if changes are necessary, then they need to be addressed at your next meeting and voted on by those in attendance. Not sure if this will help any but thought I'd apply some things I've learned in my short tenure on a PTO Board.
The rest os the story I have posted in the PTO rules forum. The part above just happened today. The Principal is basically attempting to take over control of the PTO, bring in a "Parlimentarian" from another school along with 3 district staff members to regulate 1) How the meeting is run, 2) How the Bylaws can be changed..if they allow that at all, 3) Who has what authority. I need some concrete answers about his and the districts authority. We have had a great relationship with the school until this situation and we don't want to lose that, but we don't want to be run over either......
Whoa....slow down...why would your Principal want the District to take over your group for starters?
There's more here than we know and yeah this is crazy but there has got to be a reason why. Also, yes the PTO is for the parents and teachers BUT the Principal is often held accountable for EVERYTHING that happens in HIS/HER school by their employer, the school district.
