Our system is like melloweer's with one addition: one of the PTO's officers delivers the letter to make sure that isn't misunderstood. We want to include everyone, but we do have to protect the interest of the organization. Most parents understand and we rarely have repeat problems.
The above example is how credit cards and banks do collections. There are obviously, other options.
I like the suggestion melloweer had; it does the job without creating a scene.
The families that stiff us the previous year we send out a letter privately to them letting them know that if they would like to participate this year they must prepay otherwise we do not allow them to participate... I don't remember exactly how the saying goes but its like screw me once shame on you, screw me twice shame on me (cept I don't think its screw me) we kinda go by that lol
Question: Would it be wrong to keep tabs on who stiffs you, then refuse to let those families participate in any post-pay fundraisers (like whe you go to the grocery store and they won't accept checks from certain people)? I understand the embarrassment factor involving their kids, but couldn't a way around this be found, like those families pre-pay?
Also, rather than a collection agency, why not small claims court? A hassle, but you get your money back, not pennies on the dollar.
Critter, I did wonder if it was worth it to just accept some losses. What percentage would be acceptable?
Just FYI, this is what the pros do for unpaid debt:
1-30 days late - 1 letter, 1-2 courtesy calls
31-60 days late - 1-2 letters, 1 weekly call to try to make an arrangement (break debt into payments or find a day to pay balance)
61-90 days late - 1-2 letters, 1-3 weekly calls trying to make an arrangement, sometimes accepting a 50% settlement. (After one broken arrangement, they ask for payment over the phone at that moment)
91+ days unpaid - Some places will charge off the account to a collection agency or simply write it off as uncollectible. Either way it shows as a bad debt on their credit report. (Some wait until 180 days to do this and continue more vigorously with MUCH less kind collectors.)
At a collection agency, they can put a tax lien on property, garnish wages or report debt as unclaimed income to the IRS. They also add expensive fees to the balance. But in the end, the original people owed only get pennies on the dollar.
The longer a debt goes unpaid, the less likely it is to get payment.
Two years ago our middle school PTO was convinced to use the post-pay method for its major fundraiser (the rep assured them it would make more money). Wow! The project grossed way, way more than the previous year.
After 4 months of hassling with 2 or 3 families over their outstanding balances of about $1,000, the fundraising committee finally agreed to write it off. Were they frustrated that families would steal from the PTO - you bet. Were they worn out trying to collect the money? Yes, though I don't think they tried the collection agency route. So, they said "no way" to post-pay.
This year they held the same fundraiser as a pre-pay program. Their profit was about HALF of the previous year. That got their attention.
Next fall, the middle school PTO is going back to a post-pay policy. At least now they know they will have to accept some write-offs as the cost of doing business. Would I chair a post-pay, no way. I like having the project come to a neat end the day the products are delivered. But it's hard to deny the results the MS PTO had with their post-pay event.