If you have parents who want to be involved in spending decisions, then by all means include them! I would be thrilled if we had that situation. What we do is take requests once or twice a year, depending on how many fundraisers we do and how much money we have available. Teachers must fill out a form specifying what they want, the cost, and which educational benchmarks it meets. Staff must write a simple proposal explaining what they need, the cost, and how it will be used to benefit the school. All requests are brought to the general membership for a vote. I really do think parents should be involved in spending decisions since it is their money. If you don't, you run the risk of people wondering what you are hiding and feeling alienated--thus leading to fewer active members.
How do you handle requests from staff at your school? We are having a little disagreement about this right now. In the past if we received a request from a staff member (teacher, etc.) for something for their classroom we would discuss it at a board meeting, make the decision, and go from there. We have a couple of parents that have been comng to our general membership meetings that have said that is illegal. They think we should wait and bring every matter up before the general public. We have meetings once a month and we usually have about 5 to 10 parents show up. I would appreciate any advice on how other PTO's handle their requests. Thanks.