I agree. That is way too much money to just hold on to. You have fundraisers to help your child and her school. It just looks bad for you to hold on to the money. The way we do things, is that each dept/member must have a rough estimate of how much money they need for the year. That steers you in the direction of what type of fundraiser you need. You can't just have a fundraiser for the sake of having one.
Have input from all your board members as to how much money they need to do their job. Ask the teachers for a "wish list" and have your members, along with the principal prioritize the lists. Then everyone votes on the expenditures.
We have a Family Fun Night Coordinator, Program Coordinator and Special Events Coordinators. We do get lots of donations from local businesses to help us with food, drinks, etc., but we still need a little money to complete our tasks. Schedule a big Spring Carnival! Or invite your local Playhouse/Theatre to put on a big production. Let your parents know the money is being put to good use. Of course, use the money to add to the library's supply of books, or buy computer programs, gym equipment, etc.
Remember, this is not your money. It belongs to your children--in pursuit of a finer education.
You guys have a great opportunity to use those funds toward growing involvement.
Do you have family events that bring parents and kids into your building?
If no -- now's a great time to start. Speakers. Fun nights (game nights? college funding night? etc.). Fairs. Reading night.
If yes or no -- it's also a great time to start using your funds to make them even better. Admission fees? Drop 'em or eliminate 'em. Buy 20 pizzas.
Create a new committee called your "family involvement committee" and tell them they have $10,000 to spend creating a great, welcoming environment at your school. Who knows, but you have a lot of great options with that kind of dough.
Your treasurer might be reacting to knowledge that your PTO should be a registered non-profit 501(c)3 organization (which I'm guessing it isn't yet), but even then, there's no limit to the amount of money the IRS says you can have in the bank. I think there are two issues in your posting - filing with the IRS, and spending money for the sake of your school.
Regarding the IRS: any PTO can become a federally registered 501(c)3 organization by completing the proper application process. There is alot of information about that to be found here on this website and through NPN. It's the right thing to do, and your treasurer is probably the right person to lead the process.
Regarding your bank balance: in my opinion, $30,000 is alot of money to have in a PTO account unless you have specific, publically known plans for the money. We have a $22,000 annual budget with about 20 spending categories and we try hard to get our bank balance down close to the $2,000 minimum by the end of the school year. You're right to be unhappy with the Treasurer's surprise remarks. But maybe she's just expressing her opinion that it's time to spend some of the money.
Does your PTO have a spending budget plan? With that much money on hand, future confrontations can be minimized if you implement a spending plan now, that all the members approve. For example, you could propose an account in your plan for "audio visual equipment repair". It's been my experience that tempers flare over money (even small amounts) when there's no preapproved plan and everyone thinks their project is the best.
Also keep in mind that parents might start to ask what the fundraising is for, if they don't understand the details of how the money will be spent. When that happens, participation in fundraisers drops off, and the payback is less.
I agree that you should have some padding in the bank account for the unknown. However if you have scads of money and no special projects you are saving it up for why keep fundraising so much? Also why not spend the money on events, programs or equipment that will benefit the kids now? Why not poll the teachers and your parent group to see how they would want to spend some of the money. I highly recommend a book author. Also books for the library and classrooms are always a good idea. How about computer equipment or software? Also what about some no charge family nights? As a parent I would be upset to think that the money being raised won't benefit my kid now, but maybe five years from now when my kid has graduated on. Just food for thought.
At our last meeting, the treasurer announces "we have too much $ in our bank account" (about 30k) and "we need to start spending it right away before we get in trouble with the government." we don't file a tax return. It's a relatively new school and we bring in at least 10k a year thru lots of fundraising. As the President, I was floored by her bold announcement, which she didn't discuss with me prior to the meeting. Our new principal is tickled pink cuz now she wants 10k for new books and says we can give teachers School Store gift certificates and do other things to get rid of our money. That way, she comes out looking like a hero. I work 25 hrs a week organizing a very successful PTO program and am mad that all my hard work at stretching our dollars is for naught. Who is right here and what do I do? I'm thinking of forgetting any other fundraising events for the rest of the year. Why should I bust my butt if we "have too much money"? Our teachers are well taken care of and it's a great school. We just haven't needed to replace many things yet cuz our school is new. I figured the high balance was a great asset for when things start needing replacement. PLEASE ADVISE !!!
