I see you posted this a while back. You might want to repost your question in the "Bylaws, Legal" board. I think the old posts from 2004 are outdated now that so many groups are becoming PTOs.
Our bylaws say this:
This association is obligated, upon withdrawal of its charter by the California State PTA:
a) to yield and surrender all of its books and records and all of its assets and property to the California State PTA or to another PTA or PTSA organized under the authority of the California State PTA;
b) to cease and desist from further use of any name that implies or connotes association with the National PTA or the California State PTA or status as a constituant organization of the National PTA; and
c) to carry out promptly, under the supervision and direction of the California State PTA, all proceedings necessary or desirable for the purpose of dissolving theis association.
It also says that the CA State PTA SHALL Have the right to collect and transfer any funds... and also shall cease and desist from further use of the IEN. And finally.....
This part is in all caps..
THE COUNCIL AND DISTRICT SHALL BE CONSULTED AT LEAST SIXTY (60) DAYS PRIOR TO ANY VOTE BEING TAKEN TO DISBAND THIS association.
I'm going to repost this on the other board along with your question.
I realize this is an old post but under the gun as to what we are going to do. Here is our thoughts: 1. Continue to push forward in organizing and getting our PTO up and running while the PTA finishes out the year. 2. We assume that our regional PTA office is going to want to send someone out to speak with us as soon as we let them know. (June) 3. Our PTA President doesn't think we should officially vote until then so we will ask if there is anyone who strongly feels we should stay PTA. (don't think there is anyone) 4. Now our questions are ... do we pay our insurance in June or not and can the PTA donate what funds are left to the PTO which is certainly a non-profit charitable organization!!! ????? We would rather not spend the funds down and definately could not in the 2 months left. We would like to start our new year as a PTO. Someone - anyone with experience or insight HELP!
Originally posted by Rockne: Actually, I think it's more typical for the PTA bylaws to talk about disbursement of the funds to another 501(c)(3), but it's certainly possible that some state bylaws suggest that remaining funds go to the state PTA.
It's definitely gray. There always seems to be some agita over who gets the funds, and state PTAs quite frequently use the funds as a leverage point ("if you leave, we'll take all that money") even if their interpretation is not correct. Push come to shove, I've yet to see a single leaving-PTA group lose its funds.
But because the issue can be contentious and because there's such an easy alternative to avoid the agita, I usually recommend just spending the funds down to zero or near zero. Start your PTO now. Run fund raisers through your PTO. Run fund spenders through your PTA account until it's zero. Alternatively, buy a large-ticket item that your school's been angling for. Or prepay a whole bunch of your expenses for the coming year (bus company for field trips, maybe a reputable agent who will bring you 4 arts & enrichment performers). Or donate the funds to the school account (you can even ask -- though likely not demand -- that those funds be used for a certain purpose.)
The conclusion: not surprised you're hearing that you'll lose funds. But there's no way you should. Tens of thousands of groups have gone PTO and I don't know of a single one that had to give up funds to PTA.
reruho is correct, this article of your bylaws is standard across the board. However, I remember a while back reading that PTAs in NYC were not the same as National PTA. Are you in NYC?
I am a PTA President, my bylaws state the following:
Article IV: Basic Policies, section (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 nonprofit funds, foundations, or organizations which have been established their tax exempt status under Status 501(c)(3) of the Internal Revenue Code."
Since this section has a double star, that means it is required by the National PTA and can not be changed or altered.
I think that is pretty clear. It is a decision your membership must make, since it their money and not just the Executive Board's.
Actually, I think it's more typical for the PTA bylaws to talk about disbursement of the funds to another 501(c)(3), but it's certainly possible that some state bylaws suggest that remaining funds go to the state PTA.
It's definitely gray. There always seems to be some agita over who gets the funds, and state PTAs quite frequently use the funds as a leverage point ("if you leave, we'll take all that money") even if their interpretation is not correct. Push come to shove, I've yet to see a single leaving-PTA group lose its funds.
But because the issue can be contentious and because there's such an easy alternative to avoid the agita, I usually recommend just spending the funds down to zero or near zero. Start your PTO now. Run fund raisers through your PTO. Run fund spenders through your PTA account until it's zero. Alternatively, buy a large-ticket item that your school's been angling for. Or prepay a whole bunch of your expenses for the coming year (bus company for field trips, maybe a reputable agent who will bring you 4 arts & enrichment performers). Or donate the funds to the school account (you can even ask -- though likely not demand -- that those funds be used for a certain purpose.)
The conclusion: not surprised you're hearing that you'll lose funds. But there's no way you should. Tens of thousands of groups have gone PTO and I don't know of a single one that had to give up funds to PTA.
