We don't have a set budget. Never have. We have financial reports given at each meeting. Our members know where the money is and where it is going. There is voter approval for just about 99% of our expenditures. We have put in two big playgrounds and just last year did a major overhaul of basketball courts, including resurfacing, lining and new poles and baskets(4). We get requests from teachers for items which are always put before the general membership for discussion and vote. Requests from teachers as well. We ask for suggestions at the beginning of the school year what major project we want to work for and take suggestions and then vote on it. We have operated this way for as long as I can search through the records and that goes back 20 years now.
I'd caution against stating what is and what is not against federal law (and especially what does and what does not lead to "big trouble"), unless we're going to an attorney (or an IRS agent) for the straight scoop.
It is actually against federal laws for any nonprofit group to NOT have a goal for earning money. Your PTO org cannot just do a bunch of fundraisers and say it is going over there. They have to have a plan, and show how each one gets to that plan. If the IRS ever audited them, they could get IN BIG trouble for doing the things the way they are.
Where is your treasurer?? They should be keeping accurate records of income and expenses, and giving a treasurer's report at each meeting so that everyone knows what is going on financially. Is the playground the only thing you are having all these fundraisers for? Aren't you doing anything else with the money that can be used NOW for the students and teachers? The treasurer needs to make up a budget, and everyone appoves it. Have an expense line in your budget for the playground. Work with the BOE, if you will ultimately need their approval for the urchase of the playground, to start getting prices and such on playground equipment. Survey the kids in the school to see what they would like to have for playgrond equipment (that'll make them feel important, and that they get a say after all that fundraising they are doing). If your treasurer is really lost as to where to begin to make a budget, then ask a parent with accounting experience to help get the budget started. I'm sorry I can't give you any more help -- I'm a PTO secretary, not a treasurer -- but I do know that a PTO can't function without a budget to work from. Remember...a budget is never set in stone: all you need is a vote to change it! Good luck! Let us know how you make out!
~Francine
We are a brand new PTO and seem very disorganized. In our district, new schools do not come with a playground - you need to fundraise. We have already had a ton of fundraising (community garage sale, candy bars, Happenings Books, food sale at Dedication, gift wrap, book fair, and a general letter sent to all parents requesting $$) 90% of our fundraising so far has been set aside for the playground.
It seems like we are always asking parent for $$, but we don't have a Budget yet for either the PTO general funds or the playground.
When questioned about this, the Boards answer is that because this is the first year, we don't know how much will have. I point is that we especially need a budget with this being our first year. They have not gotten any bids for a playground- they just want the money.
How can I get the board to realize that they need a budget?
