Why do you come here to get an explanation? Contact your state PTA's treasurer. They can explain to you exactly why it is considered funneling, money laundering, etc.

I was told by our state pta office that the pta should never hold money for groups such as music or the media center, etc. They said that was funneling money. How do I explain this to people I'm discussing this with. We do hold the music fundraiser money ( which we don't have a part in) as well as the media centers bookfair money. Maybe I don't really understand exactly why we shouldn't do this to begin with. Can anyone help me get a better handle on this subject? She did say that it would give the IRS the impression that we collected more money than we actually did. Thanks for the help.