I don't know why we're resurrecting an almost 5 year old thread, but I feel compelled to point out the factual inaccuracy here. Perhaps, Curtis, your state is different. But in my state (Virginia), the local unit bylaws state the following (and I've seen similar wording in other states):
g. Upon the dissolution of this local PTA/PTSA, after paying or adequately providing for the obligations of the association, the remaining assets shall be distributed to one (1) or more non-profit funds, foundations, or organizations which have established their tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.
The "obligations of the membership" consist of the obligations in the budget passed by the membership. The members get to decide how to spend their money; the state PTA doesn't get to swoop in and override the membership. There's no provision for that in any local or state bylaws in my state, and I doubt you will find them in any other state.
As for money leftover after the obligations are met, it quite clearly states that those funds can be distributed to another 501(c)3. It does not say "distribute it to any other 501(c)3 except a PTO."
If you find bylaws that support your statements, please cite the source for everyone's benefit.
Funds for a PTA can NOT be sent to a PTO. Local PTA's get their status from the National PTA and as a local PTA are bound by both the State PTA and National PTA bylaws both of which state that you cannot transfer money when disbanding. Thank you
Just FYI...before paying bus companies check with your state PTA insurer. In MD, I don't think we can pay for any transportation service (bus, limousine, van) without a bunch of prior insurance steps. We can, however, donate the money to the school so they can pay the bus service.
First of all, I think that is not true at all. For example, the bank account is yours and all the signers are at/with your current group. State PTA has no authority over it. State PTA is not the IRS or the government.
That said, it's still easiest just to have no dollars left in the PTA account when the disband vote is taken. You're an active PTA and you can do anything legal you want with your funds up until you disband. If there's zero dollars left at the disband time, then there's nothing to argue over. Easiest thing.
I was told by the PTA that if a unit disbanned, the Region PTA is entitled to any funds in the account prior to disbanning. According to PTA bylaws the PTA can back into your bank records to see if there was money left and transferred into a new organization.
I believe in most states, it is against PTA bylaws for a disbanding PTA to donate to another group unless that group has already established their 501(c)(3) status.
