Collecting Counting and Depositing Funds

Anytime PTA Receives Funds

  • Deposit immediately. The Treasurer should arrange to deposit money in the bank as soon after receipt as possible, and at least daily. Night deposits, mobile banking and 24-hour banking can and should be used as needed. When necessary, the Treasurer should contact local police and ask for an escort to the bank. If the Treasurer contacts the bank about a night deposit in advance, they will provide a lock bag to place in the night depository.
  • Restrictively endorse ALL checks immediately “for deposit only.” All checks that are to be deposited should be immediately marked “For Deposit Only to the PTA, Account # ... ” and signed by your Treasurer with his or her title. Get a stamp with this info at the time your bank account is opened.
  • Record the transaction. Duplicate deposit slips should be made so that the Treasurer will have a copy to retain for the record. Issue receipts of purchase for any cash received and reconcile the receipts issued to the bank deposit.
  • Don’t take risks. Never deposit any funds (i.e., checks, cash, or money orders) in anyone’s personal account or in the school account, and never leave undeposited funds in the school building or in someone’s home. Do not allow other groups to deposit their funds through the PTA bank account. A PTA may jeopardize its tax-exempt status by helping another organization avoid compliance with tax laws.

PTA Fundraisers

When your PTA is planning a fundraising activity that will involve large amounts of money, train the chair and committee on the procedures to follow for handling money. Assign duties.

  • Chair - Ensures Treasurer receives all revenue immediately after completion of the activity or upon receiving the funds.
  • Treasurer and another volunteer counts the money received, and both should sign a cash counting sheet verifying the amount and prepare a bank deposit slip that equals the total from the counting sheet. A receipt should be given to the chair for the entire amount.
  • Treasurer - Deposit funds at least daily into the PTA’s bank account even if the project is continuing over multiple days.
  • Treasurer or Chair - Within a few days of the conclusion of the fundraising activity, the Treasurer or Fundraising Chair should complete a detailed report of all receipts and expenditures and the profit received from the project. That report should be presented to the board and membership at the meeting following the activity with the monthly financial report.

Joint Fundraising

A PTA is a separate legal entity and not a school organization. It is imperative that this distinction remain clear. If a PTA sponsors a project or program in cooperation with a school, all funds should be accounted for and separated immediately. PTA funds should be deposited only in the PTA account, never in a personal account, a school account, or any other organization’s or group’s account.

Likewise, a PTA should never deposit school money into its account, even temporarily. All money deposited in a PTA account will be considered PTA funds by the IRS and must be reported as such. PTAs should not share their EIN numbers, their sales tax exemption or their banking details with schools, principals or school districts.

If you find you need to clarify this relationship with your school or another entity, see the sample letter to clarify schools versus PTAs. i