We don't support any clubs unless it is to sponsor children that couldn't afford membership to one of our own offerings like a book club, our math 24 club, chess club etc. Then it is only to cover the registration fee and their need must be verified by the principal (I don't even learn their names actually). We've been asked to donate to smaller groups but do not -- we DO assist them in their own fundraisers with publicity as needed (through our emails) or manpower if requested (music department dance, educational teams etc) but don't take the lead.
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I'm in a small school/community. Our PTO also functions as our Band and Athletic Booster groups. We found that the same people were serving on all groups so it made more sense to combine them under one umbrella. Both of these groups have their own line items in our budgets and receive significant amounts of our funds (23%).
Most groups, like mine, indicates that the funds raised must be spent for the benefit of all students attending the school. And though there may be a small handful of the children in the outside group that you are supporting, it likely would not fal, within those guidelines.
At the same time, this all depends on your Bylaws. Though my groups, and the majority of others, indicate this requirement, yours may not.
If it does not then I would say that it is something that should be voted on by the entire group. You may also want to include a category for this in your annual budget. Vote on how much your group is willing to put towards it at the begining of the year and stick to it.
Do any of you fund extracurricular activities such as Destination Imagination, choral groups, Scouts, jump rope clubs, etc.?
Some years we're fortunate enough to have a bit extra in the budget and don't mind helping the extracurricular groups who have come to us for money. Unfortunately, this has set a bad precedent. This year we're saving for some new playground equipment and don't feel we can contribute to extra-curriculars like we have in the past. (Extra-curriculars have never been a line item in our budget, but teacher advisors usually go through our finance committee when the request is under $250.)
Does your group fund extra curricular groups? What if a team goes to a state or national competition?