I think the descriptions of PTOs above is right on. You are an independent group, and if something untoward occurs, you'll need to deal with that yourself. May mean going to authorities. May mean going to outside places (here, for example) for insight into the particular challenge. May mean bringing in your principal to help mediate a dispute (if, for example, there's a parent who isn't playing nicely...).
But your question pre-supposes that things are very different if you're a PTA. And they're really not. That's the little known fact.
If you're a PTA and you have an embezzlement, the state or national PTA doesn't come in and investigate and give you your money back. If you're a PTA and a particular member isn't acting nicely, the state PTA doesn't take her aside and make everything right.
Best practices ar ebest practices and can be practiced by both PTAs and PTOs. When things go awry, both PTOs and PTAs wind up working internally (perhaps with some outside advice/guidance) to get things back on track.
whether your PTA, PTO, Jaycees, Kiwani you are a separate 501c3 governed and accountable to your bylaws and members.
Any hanky panky, embezzlements, etc must be dealt with thru bylaws procedure and law enforcement just becuase your 'under' a national organization doesnt mean they can do anything.
<font size=""1""><font color="#"black"">Liberalism is not an affilation its a curable disease. </font></font><br /><br><font color="#"gray"">~Wisdom of Shawnshuefus</font><br /><br><font color="#"blue""><font size=""1"">The punishment which the wise suffer, who refuse to take part in government, is...
Your bylaws need to cover any of those "what if" questions. If it is a matter of embezzlement or theft of property, the matter should be dealt with by law enforcement.
in practical terms, princiapls supers and boe's typically steer way clear of these matters, when the group is INDEPENDENT.
the schools and districts have enough on thier plate to get involved in 'because its the right thing to do, and yes we do have a bit of influence (true)' things that are delicate like that.
their job is to focus on admin and educaiton, one would thingk parent group issues relate to educaiton, but when tested, they usually say, oh no, we cannot take a position, we have no jurisdiction, etc etc etc.
the members are the only ones that have a say in matters when the group is indepeppndent.
Independence is a double-edge sword. A PTO is a stand-alone organization and really not accountable to anyone except its members.
If someone broke a law such as in the case of theft or embezzlement, the PTO could seek assistance from law enforcement in pursuing a criminal charge.
If the PTO is a 501(c)(3) and violates IRS rules for maintaining that status (for instance stakeholders profited personally), someone could report them and perhaps the organization would lose its 501(c)(3) status.
But in the day-to-day operations, there is no entity that enforces compliance or that ensures the PTO follow its bylaws. That's up to the members.
That being said, the school and the district are certainly important stakeholders. Depending on the circumstances, they may have influence.
For the most part, the PTO has to police itself. That can be good; it can be bad.
Our school is prepairing the presitation for switch from PTA to PTO .. a very common question seems to be "If there is a problem such as stealing money or something similar who does a PTO turn to to handle such problems? I would assume you would go to your school princple or board of Ed but I was hopeing someone who has gone through this can help me with a definate answer?? Thanks!!