Agreeing to have a PTA sponsor your Grad Night party can have many benefits, but it can also involve restrictions and problems
Word to the Wise: Contracts automatically obligate the PTA through its insurance Policy - if a lawsuit is filed, it is the PTA policy that will be used to pay attorney fees, court costs, and settlement damages).
PTO NOTE: Parent Teacher Organizations (PTO) typically do not have the same capabilities as a PTA. For example, PTO organizations typically are not 501(c)(3) "charitable" tax-deductible organizations.
Word to the Wise: Grad Night should also keep a copy of the vendor verification form.
Word to the Wise: If the PTA has purchased a bond, the Grad Night treasurer (and anyone else authorized to sign checks) should also be named in the bond. This may require a Grad Night representative serving on the PTA executive committee.
Word to the Wise: Non-profit organizations cannot solicit for one purpose (such as Grad Night) and then use the funds for another purpose. Unless otherwise stated in fundraising letters and publicity, all funds and items received for Grad Night must be used for that purpose. Funds cannot be reassigned to other uses such as funding a future class reunion or placed in the general PTA fund unless donors were made aware of this when the donation was solicited.
Word to the Wise: To file with the Internal Revenue Service, the PTA treasurer needs the following:
Grad Night might be required to do the following:
Yes, a PTA may work with another group; however, projects are required to be submitted for approval to the voting body of the local PTA unit. If funds are required for the project, the local PTA may bear its share of the expenses.
When a PTA participates in a joint endeavor, the PTA must make sure the rules of the PTA do not conflict with the by-laws of the organization with which they are cooperating. If there is a conflict, the PTA should withdraw from participation in the event.
The chairperson of the party should be a member of the Local Unit PTA Board. The chairperson should present a work plan to the PTA Board for approval. The chairperson should present a financial plan to be included in the local PTA budget and approved by the general PTA membership. The Grad Night chairperson should give a report at each PTA Board meeting on finances and an update of activities.
No. The PTA president is responsible for contracts. The PTA president should be the only officer negotiating the contract. One of the final approval signatures could be that of the Grad Night chairperson.
Yes. PTA bonding insurance covers all volunteers who handle money.
Word to the Wise: Although the money is the apparent property of the PTA, donation laws prohibit the use of this money for any purpose other than that which it was designated. If the money was designated for Grad Night, the PTA cannot spend this money for anything except Grad Night. This item needs to be carefully resolved with the PTA.
According to the PTA, all money raised from local dues and through additional efforts and other assets, including checking accounts, savings accounts, and certificates of deposit, are the property of the local PTA unit.
There may seem to be a lot of restrictions, but keep in mind all of the financial record keeping must be done whether or not a PTA sponsors your Grad Night.
Your Grad Night always has the option of finding other sponsorships. Be sure to check with the school principal before exercising this option, however, as you may find that he/she will insist upon Grad Night coming under an already organized and recognized group such as the PTA.