Finance - Local Leader Kit

Finance

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Maintain Organizational Health with Fiscal Responsibility

Your PTA’s board is responsible for the financial health of your association. It is important that all board members, not just the treasurer, understand your PTA’s finances.

PTA Finance 101

This guide shares best practices for budgeting, banking and conducting a PTA audit, with specialized information on contracts, incorporation, insurance and federal tax requirements.

Budgeting & Special Funds

A budget shows a plan for how your PTA will raise money and spend money to implement the PTA mission. It represents what your PTA intends to do. Additionally, there are certain circumstances under which the expenditure of monies are restricted.

Insurance & Liability

Your state PTA and bylaws will have information about what types of insurance your PTA is required to carry. Even if not required, PTAs may want to consider fidelity bonds and liability insurance.

Handling Money

The processes of collecting funds, disbursing payments, and managing dues must be directed by effective PTA procedures. These procedures minimize likelihood of missing funds, but if a loss occurs, it will be found quickly and covered by insurance, less the deductible.

Your 501(c)(3) Status

It is very important that a PTA maintains and protects its tax-exempt status. As a 501(c)(3) organization, a PTA enjoys multiple benefits, but must not violate certain restrictions.

Reporting

Local PTA Treasurers are responsible for submitting monthly and annual reports to the board and membership. You and your Board are also responsible for the reporting to the federal government or IRS.

Conducting an Audit

Auditing involves examining financial records and transactions to ensure that receipts have been properly accounted for and expenditures have been properly authorized and recorded, in conformity with PTA bylaws, standing rules and budget limitations.

Templates, Tools & Resources

These basic finance tools and templates are designed to help a PTA president or treasurer navigate the intricacies and law surrounding fiscal responsibilities.