Thanks for responding. We just sent out info on our Spring fundraiser and I'm thinking this money (when collected) can go to the new PTO. We'll have plenty for start up costs. Some remaining funds would have to stay in the PTA account anyway to "provide for debts and obligations..."
This has been a great source of information (and support!) Thanks again.
I think if you have the majority of your membership on board, the rest will fall into place. I can't say for sure, but I think you're right about once becoming a 501c3, I don't see why you couldn't "donate" to your new group. I would strongly advise against using any PTA money for your initial startup costs...such as filing fees and insurance. But once your 501c3 is established, its only right that the $ raised by the school stay at the school. (just my opinion)
Good luck and keep us updated!!
Suzi :confused: <~~~that is exactly how i feel all the time
Thanks to all of you who replied! I truly appreciate everyone's input and it has prompted me to re-check our bylaws.
ARTICLE V Section 14 (A local executive committee or board considering a recommendation to dissolve a PTA shall [img]smile.gif[/img] f. arrange for the proper disposal of PTA funds and property according to the provisions of these bylaws;
ARTICLE IV h. Upon dissolution of this organization, after paying or adequately providing for the debts and obligations of the organization, the remaining assets shall be distributed to one 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.
I'm thinking we can "distribute" the money to our newly formed PTO after the 501 (c)(3) goes through. Of course now I'm wondering about the complications of having basically two parent groups at our school. Will people understand the process.
I certainly see no requirement that we turn over the funds to the state or national PTA. Does anyone care to weigh in on all of this?
<blockquote>quote:</font><hr>This local PTA is obligated upon withdrawal of its charter by NYS PTA; To yield up and surrender all is books and records and ALL ASSETS and property to the NYS PTA or to such an agency as may be designated by the NYS PTA, or to another school local PTA organization under the authority of the NYS PTA."<hr></blockquote>
susie, this is a seperate article and section of the first part of your quote from the bylaws. (article V sec 8...NYSPTA bylaws) This is the case when NYPTA revokes your charter for some agregious act that your org may have committed against its charter. (ie endorsing Pres Bush and his vouchers) OUCH!!! This has nothing to do with voluntary dissolution.
As a matter of fact, Article V sec 7 reads: "the charter of this PTA shall be subject to withdrawl and the status of such org as a PTA unit shall be subject to termination, in the manner and under the circumstances provided in the bylaws of NYSPTA" That refers to sections 1-6 of article V, which basically sets the conditions of your charter.
Dissoulution is explained in Article IV paragraph h, which is the bylaw marked by **, which means it is a NATIONAL PTA bylaw, and NO OTHER amendment may supercede it.
There is a vast difference between dissolving a unit and having your charter revoked.
I've seen this information posted several times, so I'm speaking from second-hand experience. I think the key is "upon dissolution". Yes, we've heard that remaining funds revert to the PTA, but most organizations manage to SPEND the funds before they dissolve, so there is nothing to transfer. I believe this is what Tim meant by there being ways around it.
What's frequently been posted is that the parents start a PTO while the PTA still exists. New fundraisers (and incoming funds) are run by the PTO and go into that account. Meanwhile, the funds in the PTA account are expended down to zero. We've seen a few cases where the groups said they transferred the money to the school, who later "donated" an exact amount to the new PTO. I've no idea if a school would be willing to do this (ours wouldn't - the auditors would go nuts!), but obviously some have. We've also seen some postings where the PTA finished what purchases it wanted and then just donated any remaining funds to the school for their use. What they CAN'T seem to do is simply transfer the money from the PTA account to the PTO account.
I have re read by bylaws for our PTA "Upon dissolution of this organization, after paying or adequately providing for the debts and obligations of the organization, the remaining assetts shall be distributed to one or non profits funds, foundations, or organizations which have established their tax exempt status under 501(c)(3) of the Internal revenue Code." "This local PTA is obligated upon withdrawal of its charter by NYS PTA; To yield up and surrender all is books and records and ALL ASSETS and property to the NYS PTA or to such an agency as may be designated by the NYS PTA, or to another school local PTA organization under the authority of the NYS PTA."
We have been informed that any monies left in our PTA account and all property left over after all debts are cleared would be turned over to our district PTA which I charted under NYS PTA.
