1. 201 Money Matters

2. Local Unit Bylaws What do you know about local unit bylaws?

3. Local units are governed by their bylaws. Rules on how local unit will operate. May be general or specific May never be suspended Bylaws vs. Standing rules? Policy and Procedure Book?

4. Duties of Officers President Elected representative of your PTA Only personal legally authorized to sign contracts, tax returns and all other legal documents Signatory on all financial accounts Cannot serve as member of audit committee

5. Treasurer Elected custodian of the PTA’s funds, financial records and official membership list. What are the treasurer’s duties?

6. The treasurer is a signatory on all financial accounts May not serve on the audit committee.

7. IRS AUDIT Be prepared to provide all records to document the PTA’s activities for the period in question. Do not assume that as a non-profit, tax- exempt association the IRS will not perform an audit. It could happen to you!

8. UNRELATED BUSINESS INCOME TAX (UBIT) As a tax-exempt organization, PTA revenues are not subject to federal income tax if the revenue is related to PTA’s tax-exempt purpose: Educational – for members and the general public. Take a look at Page 5 and 6 in your course book. Let’s explore some activities that generally will be classified as yielding unrelated business income.

9. If your PTA’s unrelated activity starts to rival its related activity, so that the unrelated activity is perceived to be dominant, the PTA may no longer be considered as a charity supporting itself with some unrelated business income.

10. It may, instead, be viewed by the IRS as a business with some charitable activities. At that point the PTA may lose in tax-exempt status. For more information, visit the IRS Web site: www.irs.gov/pub/irs-pdf/p598.pdf

11. FISCAL YEAR The IRS requires that all non-profit, tax- exempt 501 (c) (3) organizations maintain a fiscal year. Calendar year vs. Fiscal Year

12. PTA AS A CONTRACTOR OR EMPLOYER It is not recommended that PTA units become employers or pay the salary of any individual. This would require having W4 and W2 forms completed and withholding and remitting state and federal income taxes and social security. Other possible forms: Form 1099 Misc. Form 1099 K

13. FUNDRAISING PTA funds should be raised by the members of a PTA in order to meet the mission and purposes of PTA and the budgeted goals approved by each local unit. What are appropriate uses of PTA funds? Why should we consider uses of PTA funds?

14. Children should never be exploited to solicit funds for PTA fundraising projects. Children should never be involved in any activity that might place them in an unsafe situation. What are some ideas of fundraising events that could properly involve children?

15. TAX-EXEMPT STATUS Why is it important to protect PTA’s tax-exempt status? What could threaten a PTA’s tax-exempt status

16. GAMES OF CHANCE “Pay to play” State and local law or school policy may have prohibitions or special requirements www.irs.gov/pub/irs-pdf/p598.pdf

17. CORPORATE SPONSORSHIPS A sponsor endorses the PTA, the PTA DOES NOT ENDORSE THE SPONSOR.

18. CONTRACTS Who is responsible for and signs contracts for your PTA? What name should the contract be under?

19. U.S. POSTAL REGULATIONS What are the rules and regulations regarding a non-profit bulk-mailing permit?

20. COPYRIGHTS Do PTAs have to worry about copyrights? Can they just copy and distribute anything they wish to?

21. AMERICANS WITH DISABILITIES ACT (ADA) Under the ADA, PTAs are required to provide reasonable accommodation for persons with disabilities that is easily accomplished and able to be carried out without much difficulty or expense when they are utilizing a public facility.

22. Records Retention Schedule for your future reference.

23. ADVOCACY “Insubstantial Rule” “Lobbying or Not?” Any expense for an activity considered “lobbying” should count towards the insubstantial effort. Keep accurate records of activity.

24. “(H) ELECTIVE TEST” RULE Lobbying activities governed by Section 501(h) of the Internal Revenue Code. Allows more than an “insubstantial” amount in lobbying expenses Requires completion of an IRS form and very careful record keeping.

25. SCHOOL TAX REFERENDA It is appropriate for a PTA to “enthusiastically support and actively work for a school tax referendum”. However keep in mind: “Insubstantial Rule” “Local Political Committee?” “State Political Committee?”

26. What about COALITIONS?

27. CANDIDATES FOR PUBLIC OFFICE PTAs are encouraged to express positions on issues that affect the welfare of children and youth. PTAs can never support or oppose candidates for public office.

28. CANDIDATE FORUMS This can be a debate, lecture, panel or forum. Candidates for public office are given the opportunity to present themselves and their positions to an audience. Every candidate for a particular office must be invited. The forum can be held even if all candidates do not attend.

29. PTA Members Running for Public Office PTA members who choose to seek public office may not request or receive PTA endorsement at any time. PTA service may be listed as part of a candidate’s qualifications.

30. IRS Resources Illinois Resources