Michelle B: - we in Texas also pay sales tax. We are allowed two tax-free days (i.e. events per year) as a tax exempt entity. But we collect and pay sales tax anything other than those. Naturally, we choose the two bigget events for our exemption.

It's not a big deal. We just file a form once and year and send in the payment.

Michelle: We are in OH, a silly state that allows us to charge $$ for events 6 days per year exempt from sales taxes, but if we have 7 or more, we are considered a business and must pay sales taxes. Our group was under the impression that 6 events (not days) was the limit.

As a non-profit, we are exempt from state and federal Income tax, but we must pay sales tax on most events, with some exceptions (packaged food, prepared food "to go", magazines, scrip and a few others).

Yeah, it's kinds illogical having to pay the tax and all, but the only way around it is to schedule fundraisers and events that are exempt from sales tax. This is why you see so many magazine and food fundraisers (exempt), and scrip is really popular (exempt as well). Boy and Girl Scouts sell popcorn and cookies (Exempt!).

Our total budget is $33,000, and includes everything, including the cost of fundraisers, so our spendable cash is about half of that amount. We do need to start budgeting and spending this $$ on field trips, supplies, arts programs, etc. instead of saving it all year long and buying $8,000 worth of expensive technology gifts for the school at the end of the year.

Not only does this limit what our kids can do during the year, it make the parents wonder why they are raising $$ that doesn't directly benefit the kids. This results in less-than-warm-and-fuzzy thoughts about our PTA. We raise bunches of money, and we STILL charge full price for everything. Our teachers don't schedule field trips because they can't get enough parents to drive and chaperone to keep the cost down (the list goes on and on!).

We have the PTA resource guides and training but apparently they were misunderstood. We have lots of $$, but it is misguided. We have a membership of 150-200, but it is unmotivated and misdirected. These things will change starting in November, and I'll probably post the gory details when they happen. Thanks for posting!!

Hey Ren,
I just read the post (I know I'm a little late but I have been so busy!!) and I don't understand the whole tax situation? Why are you required to collect taxes when you are tax exempt? I've never heard of such a thing?
Could you please explain?
Also, does your State office provide unit training? If so, (and you may even contact them yourself to find out because they should) then what you and your treasurer have discussed is already being done, quite successfully, elsewhere. If not, I'd contact National and ask for some materials. Find out who is a certified BSP trainer in your area and request it for your group. Really good workshop! Your unit should have gotten a resource book (that comes from National) I'd track that down too! It can help you tremendously. It also sounds like you and your treasurer should keep pushing. You are both heading in the right direction. Besides, if you have earned $33,000 and you haven't been helping with field trips, arts, school supplies, etc, What have you been funding? Rock the boat baby! It sounds like your PTA has been stagnant for too long!

As we prepare for our General Meeting this evening, here's where we're at: I've received some calls, talked with a bunch of people. The Treas has confirmed that we must make start budgeting the taxes into our events and so that part's figured out.

As a bonus, the treas and I have discovered that we have a mutual interest in:
1. Eliminating fees for most of our events and absorb the expense.
2. Start paying for field trips, arts performances, buses 4 trips, school supplies, and more.
3. Reducing the PTA dues to a token sum instead of using dues as a fundraiser.

It turns out that the treas kept suggesting these items at meetings and nobody would speak up to agree with her because they didn't want to "rock the boat" or extend the meeting a single extra minute. She didn't know I had enough votes in the board to approve her ideas, as I had been working behind the scenes talking up the same ideas. SO, our PTA is going to look totally different come next fall, with some changes made to our spring events.

This is a great example of a PTA that never moved forward because people kept their opinions to themselves. Don't be afraid to offer your ideas and opinions to your PTA - You never know what might happen!

Hey, update time again! I sent another email last night that apparently is getting some results. Calls were made today that confirmed my information; we're meeting later this week, and yes, notes will be taken, by me if necessary.

I'm not sure that they got 100% good advice re our prior years, but it's a start- At least they hopefully understand that I'm not trying to be a crank, and that it's not a personal vendetta towards anyone. I'll update on the progress, and thanks to all!!!!

(DAVEP - Days like this I wish I was in your state - Crazy OH Laws!!)

PTA,

Nice to get an update on this. As for that "secret" meeting. You may want to refer back to some of the law I gave you on this! They are required to keep minutes and if those minutes include any discussion about finances, those are public records. I sure hope they keep minutes and accurate ones at that! You may wish to point out this is not an option they are required by law to provide the information I stated before and all the supporting documentation to it upon demand (not request, the law says demand) by anyone! If they refuse they can well lose their non profit status as well as paying rather heavy fines, I dont think they want that to happen, I know you don't.

I wish you luck and you are correct this is not and should not be a them vs you situation, you all have a really serious problem and it is going to take all to solve it working togehter.

Might I add be thinking pro bono lawyer also! [img]smile.gif[/img]