Hey everyone! Let me set the record straight,it is not legal for them to just take your funds and put them into the districts internal accounts! Only in a bad situation, where monies have been stolen or are under investigation, that's the only reason the school district has the right to step in. I have just been put in this situation last year and we came up with these little tidbits to share. As a PTO,you are not paid by your district as an employee. The PTO is a seperate entity of your school. You are affiliated (sp.) but not associated. What your organization does has to be approved through the district yes, but money wise, no, only the parents and thier vote at the PTO General Meetings is where that money ends up. Dances, committees, programs that's why it is so important for their involement! Because you do work as your own entity you should investigate your states Tax Exempt Status. You are a Non-Profit Organization, this does apply to you. Make sure you do your homework first though. Contact a lawyer, and or an accountant to gather information like the paperwork, filing fees, their fees. Also, consider purchasing insurance to "Bond" your Board members, it's safer for everyone! Call your sister schools in the neighborhood and see what they are doing? What information do they have? Then take it to the PTO General Meeting for approval. If you do file for Tax Exempt try to set up it's own Allocated Budget Account and get everything copied. I can't stress this enough! Create the PAPER TRAIL! When I first started the board three years ago, every year we had to start from scratch just looking for the simplist things. We created "Event Folders" for every thing the PTO had to do with. Dances, luncheons, soup labels )everything). The chairpersons collected information made copies of flyers, inserted budget costs with a list. Phone numbers, copied receipts, catalogs, and order forms or letters. When the next year came or the new volunteer was handed the job. The paper trail was there to help them make the job easier, they already have the flyers from last year, just change the dates and jazz it up for this year. For Board members the Paper Trail is essential!!! Checks written, always two signatures. Requests forms for money, teacher needs an advance on let's say a nature hike outing? Fill out a request form two signatures yours, and theirs, make sure they pay it and then file it. Bills paid, two check signers, file the bills. This also helps when you have to set up the next years budget to have all that paper trail to look up past accounts. This is also great for the "NEW" Board members. If the information can be found they won't be so stressed having to hunt everywhere for it. It will take time to set up the tax exempt status and to create the paper trail but belive me it worth it! I hope this has helped you all.