You might want to set a minimum of a few hundred dollars so that you don't have to start the new year with a fundraiser. That might be best as a written policy, however, vs being part of your bylaws. A group's financial situation can vary significantly from year to year -- your school might have a big expense that you need to help with, or you might have disappointing fundraising results that make it difficult to carry over the amount that you would like, for example.
This is a point of disagreement within our own PTO group. The clique of 4 who are always the officers, etc., LOVE to keep a $15,000+ balance at all times, increasing fundraiser events, etc., while the teachers are left begging parents on a weekly basis for things that should/could easily be provided by the PTO funds.
In light of how frequently there is news of a PTO person stealing funds, I strongly feel there should never be more than $500 at the end of the school year in the accounts.
This is our first year ever that we will have funds left over because that is what we planned. We are planning a rehaul of our playground and with every fundraiser, 1/2 goes into budget for next year and 1/2 goes into the playground acct. After a horrible fall fundraiser last year with the prior Exec. Board, we never want to go through not having money to cover everything, especially at the start of the year!
Right now we have approx. $9900 to carry over to the fall with our budget usually around $11500. Does it seem like a lot? Maybe, but we can't get things accomplished if we are always playing catch up. The current Exec. Board runs the PTO like a business and what business spends all their money??
Our principal has a "say" in the money but she is usually on board with whatever we end up doing...we ultimately control our own finances.
We've never had petty cash before this year either. We started with approx $250 only because we had Spirit Wear left over that was a mistake and we weren't charged for it because it was the wrong sizes. So, we sold it at a discount and opted to have a petty cash fund. I think we still have over $175 in it and we will just carry that over to next year. The principal does not have access to any of our money including petty cash...the treasurer keeps it all.
It's not always easy to spend down a large balance if it's realized late in the school year. We ended up with $12k leftover last year due to a very profitable May carnival. We tried, and voted at our early June meeting to give grants to several school departments, but at that late point in the school year, it was surprisingly difficult for them to spend the money thoughtfully. That said, I would never PLAN to carry over that much money unless it was officially allocated for a long-term project.
If you're doing the work of the typical parent group, you're not in danger of carrying over too much money in the IRS's eyes. There's no limit.
Our principal doesn't have control of our funds. She does have a vote with what we do with them. She can also tell us that we can't do things in or with her school, as she is responsible for it.
On another note, we do not ever use cash for any reason. If our principal want to spend money, she has a discretionary amount that she is allowed to spend however she sees fit. As long as she stays within that amount, she is reimbursed for expenses when she submits a receipt.
From past issues, we have really tight controls for cash handling and NEVER have any sitting around.
Good Luck.
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
