To clarify the confusion on this issue in our school, our bylaws state that the budget runs from September to August. This means that the money has to carry over and means that new officers have a chance to get their bearing before deciding on funding for enrollment and other things that happen before the first meeting fo the year. Our principal is also not given any power to oversee but an equal vote, if she decides to come, as far as finances.
The irony of commitment is that it’s deeply liberating-in work, in play, in love. The act frees you from the tyranny of your internal critic, from the fear that likes to dress itself up and parade around as rational hesitation. To commit is to remove your head as the barrier to your life. --Anne Morris
The "let those who raised it see the benefits" theory has a fairly big hole.
As long as you start the year with a surplus and end the year with a surplus, then the kids/families in that given year have gotten all their benefits (meaning they benefitted from "others'" earnings at the beginning of the year and then left earnings for the next set of "others" at the end of the year. It's a wash.
I don't think there's any doubt that carrying some funds over is a wise move. How much is up to your group and can be changed each year depending on: a) preferences of current members; b) long-term $$ needs; c) success of that year's fundraisers.
We have a large surplus at the end of each year that we do not spend. We make our field trip and classroom grants available the first day of the school year. This means we need at least $6,800 at the beginning of the year.
I like to think of it as similiar to your own checking account. You could not function if you had a zero balance and the beginning of the month and financial advisors suggest having at least of 6 months savings in reserves. Imagine if a fundraiser flopped or if a disaster occured in your town and funds were being raised for other causes and you took in less funds as a result.
I think to keep some surplus funds is fiscally responsible and ensures the health of your organization for the long run.
To address the issue of spending the money for the children who raise it doesn't make much sense. Most organizations don't allocate funds only to children whose families participate in the fundraising. The money benefits all of the children whether they raise fund or not. Picture it as incoming K students will benefit from money they have not raised and outgoing seniors will not benefit from money they raised and it all evens out in the end!
Just my thoughts but this is a topic that has been long disputed in all non-profits for some time.
This is also a topic that I have been discussing with the other officers. We are all new officers this year, I am the treasurer, and we started the year with over $12,000 in the club's account. I felt this was way excessive, along with other members. Our community just past a vote to have a new K-5 school built, along with remodeling the Middle school, building a new HS gym, along with other things. However, this is not scheduled to be completed until fall of 2005. We were told by the former President of PTC, that some of the principals would like to see some of the money held onto for the new school. I personally believe that, as stated above, the people should see some uses for the money now, some of these kids will be in HS by then and will not see the benefits of the fundraisers; our HS is not involved with the PTC. We just started a new Math program and all new items had to be purchased for the classrooms. There is one bag of games that is suppose to be for the kids to be able to take home and play with their parents (all part of math), but with the cost, only one was purchased for each classroom. I fill this is exactly what some of the money could be spent on, to buy more of the bags for the classrooms.
I also feel that if there is no "purpose" for fundraisers but to just raise money, that it will cause people to stop helping with the fundraisers.
A very new person to the Parnt Teacher Club and still learning. I so much appreciate this website, it has given me a lot of in sight. Melissa
Sounds to me like what you're doing is good, sound management.
Carrying that surplus over means that -- now that your one fundraiser has underperformed -- you aren't forced to run another right away or radically cut your programming/support plans. That's what a rainy-day fund is for.
And now you're thinking of whether you need another fundraiser, but you're thinking about calmly and rationally, rather than from a "we don't have any money" emergency.
Nice job. I'd thank this parent for her input, explain the great benefits of what you're doing for the long-term success of your group. And then I'd ask her to help out with one of your "fund-spenders" to help make it great.
This is such a timely post. Last night at our PTO meeting, we had a teacher/mom ask why we continue to have fundraisers when we had 10% of our budget in a savings account. First let me say that we just started our 4th year as a school. Some history: By the end of our 2nd year we had 30% in our checking and was trying to decide what to do. Like you are deciding now. From what we've heard in articles and at the shows, you lose momentum if you don't have a fundraiser and we only had one. We cut out the Spring one. In a 3 year old school that has 1/2 empty library shelves we can't afford a drop in the future. We were also faced with the problem of spending it wisely and timely.
So we put the surplus in a saving account. We did make $200 in interest over that time. As early as November we voted to double the teachers grants; to give more to the school that staff think up to enhance the school with materials for education, safety and technology. We knew by then our fundraiser was successful enough to get us through the year. In February, we asked the Building Leadership Team to give us some big ideas, we still had some surplus. They came up with a ton and the parents voted on the favorites and we spent all but the 10% we now have. Our fundraiser this year looks like we'll be down a little and we'll make up that short fall with savings. We have nothing in continency, so any emergency or summer spending will come out of savings. Next year we will have to decide if we need to have that second fundraiser again.
Savings or surplus is not a budget line item. But you should have a aggressive plan to spend it. The thing that got me is she kept saying she'd been involved for 9 years and none of the other schools have held over this much. Well maybe it's because we are different that we are the only ones with a surplus. What percentage does everyone's PTO typically carry over?
