Check your Articles of Association regarding the Purpose of your Organization.

Ours states that one of our purposes is to provide Repository services for class project monies.

We have specific funds set up to hold money for things such as the Chess Club or the Choir. This is money that they have raised themselves or have had donated for their specific purpose.

My advice to most questions such as this is go back to your Rule Book which is your Articles of Association and By Laws. We each are organized a little differently and what may be correct for one is not necessarily correct for another.

I agree with IMove.... it really is quite inappropriate for the PTO to be managing school funds. Co-mingling is an accounting no-no.

One question though, why is the 5th grade fundraising, and for what purpose? If these funds are to be accounted for separately from other school accounts.... the school's financial manager should be able to set up separate accounting codes. If that isn't possible, a parent volunteer could do it.... but I would think that advisable.

If the school/district prohibits the purchase of books with these monies (though I couldn't imagine why)... then aren't they asking you do do something that would "counter" school policy?

We do not do that - but I would not suggest co-mingling of funds EVER. This can only cause problems in my opinion. While I can understand and appreciate that it is easier for them to have it handled another way and certainly appreciate your PTO's willingness to help where you can - I think it would only open up opportunities for questions from both sides and I hate to see that happen if it can be avoided.

The fifth grade with permission of the principal has asked our org to deposit their fundraising funds and disburse the money to them as they need it, because the account they have doesn't allow them to purchase books. One of the parents who works in another school district approached me and told me this was an inappropriate function for a PTO. First, classroom fundraising funds have certain spending restrictions that shouldn't be avoided. Second, it might not be a good idea to start a precedent of managing school funds. Our treasurer works fulltime as it is! Do other PTOs manage classroom funds and accounts (where 100% of the money belongs to the class not the PTO)? Thanks, CougarPrez