| | Fiduciary Responsibilities of the Board Sue at: Treasurer@westernregionpta.org
The entire executive board, not just the treasurer, is responsible for the financial well-being of the PTA. The executive board consists of the elected officers, appointed standing committee chairmen, and others listed in the bylaws.
When an individual becomes a board member, either through election of by appointment, that person becomes legally obligated to act in a prudent manner and to exercise/practice reasonable care and diligence to assure that the best interests of the PTA and its members are protected and preserved.
The fiduciary obligations of board members involve core principles that have remained essentially unchanged for many years, but their burden to prove that they have acted in good faith on those principles has changed. Courts are showing impatience with boards that appear to be ill-informed and ill-prepared when making decisions.
ALL PTA CHECKS MUST HAVE DOUBLE (2) SIGNATURES!!
BUDGETS
The budget is an outline of estimated income and expenses. It explains the kids of programs and PTA development you want to carry out and how much money is needed to be raised to carry out the program. For more information click here.
PROTECTING PTA TAX EXEMPTION
New York State PTA and all units/councils in good standing are exempt from federal income tax as a charitable and educational organization under the provisions of section 501(c)(3) of the Internal Revenue Code.
Certain restrictions that apply to 501(c)(3) classification must not be violated: Each PTA must be organized and operated exclusively for charitable, educational, or scientific purposes. Its resources and funds cannot be used for private benefit of an officer or board member. Upon dissolution, its assets must be distributed for one or more of those defined exempt purposes. It cannot engage in substantial amount of lobbying activity. It cannot engage in any political activity. Tax exempt 501(c)(3) organizations are forbidden to support candidates for public office, including school board elections.
For more information click here.
Donations of Equipment to School Districts
The primary function PTA is child advocacy. Each PTA unit is self-governing and operates under the guidance and structure of National, State, and Region PTA.
PTA is an educational organization and should not be expected to provide the needs of their school district or individual school. It should not allow itself to become the provider of services, supplies or equipment for schools, even during times of financial strain. For more information click here.
Frequently Asked Questions????
Does my unit/council need to file income tax?
What is the 3 TO 1 Rule?
What activities are covered under the insurance?
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