Our (new) principal suggested this at the beginning of the year and we politely declined. Then later we found out how messed up the activity accounts can get in our district.

Currently, we will write a check to the school for approved items they have purchased with a P.O. and it gets deposited into the activity account. Sometimes however, the amount charged to the account gets changed, depending on whatever deal they have going on with a particular vendor. Transactions can take months to post into the account. It is very hard to keep an eye on this account and to reconcile it. One mistake with an account number could mean a lot of hassle.

I would avoid it if at all possible. Our principal backed off after he found out we had bond insurance and regular audits (bimonthly).

Regardless where the money is deposited, you need an annual audit. That doesn't have to be from an expensive accountant, but could be by a small committee not involved in day-to-day transactions.

Since you are already set up as a 501(c)(3), I don't see any real benefits to the school holding the funds.

There have been some good examples on the Forum where the school took over the treasury function. Depending on the circumstances - and assuarances that the PTO still controls the funds - that can work. But it doesn't seem to be what you are suggesting.

If they are sincerely offering this as a "service", then I'd want to know more about what benefits might be.

If the district is concerned about the security of funds raised by school-related organizations, then I'd look at what the PTO can voluntarily do to reassure them, perhaps providing a copy of the proposed budget, the annual audit, and the annual financial statement.

I'm all for PTOs maintaining their independence. But I also believe the school is the most consistent and mature stakeholder in the organization, giving them an obligation to assure good practices are observed - especially with funds.

He who controls the purse strings controls the organization. That's why I wouldn't do it (or recommend it for our group). Audits are NOT that difficult and you'll usually find someone to do it gratis. If you are raising 60k a year invest in yourselves and hire someone to do it once a year...that is certainly not a misuse of your money. If you want to stay as a separate entity, and be connected but monitored by the district I would vote to keep the money separate. Just my 2 cents...d

We are a 501(c)3 organization, operating for the purpose of raising funds for our school. Our district has suggested that we deposit our funds in the school's "activity fund" for better protection of the money, and no need for an independent "audit" (and I use that term loosely - it's not an official audit). This year we have raised almost $60K. We have been told that we will not receive the interest generated from the monies, but will instead go into the district's pool of money.

I'd like to know why, or why not, you would consider doing this with your PTO's monies. Anybody out there with a bad experience with this?