We operate on last year's funds this year and raise money for next year this year. This is because our major fund raiser is not until March and we have a lot of things we need the funds for before then.
We don't worry about the fact that the kids who raise the money should get the benefit, because other than the 5th graders, they'll mostly be here next year anyway. Also, there were funds other kids raised there for them whenever it was they entered the picture.
Someone in this post indicated that the IRS will flag your 990 if you show rollover as more than half your annual budget three years in a row. Has this happened for the school that indicated it rolls over 30K each year? If so, what did the IRS say/do?
Consider this....if you start the year with $30,000, and end the year with $30,000. then you never spend the $30.000. It's not benefitting the school or the students if it's still there, year after year. If you raise enough every year to cover your total annual budget, then you probably don't need to keep so much on hand over the summer.
Our bylaws require a minimum of $2,000 carryover, but we raise $18,000-$30,000 each year. We budget to spend all we raise, except for the $2,000 that we need to get the next year started.
Well we have about 800 so it is all relative...although 30K seems like a TON to me I guess it is about having an honest budget and standing up for what you're doing regardless. Sounds lilke bland is above board and willing to do that so I'd trust it!
Holy Cow!!! We are a small school (140 preK & K students.) We just raised our roll over total this year from $500 to a whopping $1,000! WoW! I could not even imagine what fun stuff we would be able to do with that kind of money.
We roll over about $30,000 a year, but every bit of it is budgeted for committees and activites for the following year. Every activity that we are doing next year is already budgeted for. Fundraisers next year will pay for a couple big gift items to the school and then work to end the year with $30,000 again. It prevents any stress about whether we will have enough funds to do what we want to do.
I'm not sure that most families know we opporate this way, but they get a fair amount spent because if you start the year with 30K and end the year with 30K - you actually did spend everything you raised that year.
