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The law permits a nonprofit organization to receive corporate sponsorship income tax free if the sponsorship is linked to a specific event that is held once per year. It is acceptable for PTA to receive payments structured as royalties which is a percentage of gross sales or to enter into sponsorship agreements with businesses, including e-commerce businesses. Under new regulations, it is acceptable for PTAs to agree to an exclusive sponsorship. An exclusive agreement is one which prohibits competitors of the sponsor from selling at the event. The portion of the payment which reflects the exclusion element is taxable.

For the payment to qualify, there must be no arrangement or expectation that the business will receive any substantial return benefit for its payment. The PTA may not enter into a partnership with a business. Partnership implies sharing in the profit and loss of the business and would result in unrelated business income and tax liability.

The PTA should acknowledge publicly the royalties or sponsorship. The acknowledgment of thanks can list the corporate sponsor’s name, logo, address, telephone number, and products.

PTA May

Hang a banner on the school campus with permission of the school principal per district policy.

Hang a banner where an event is being held after a Facilities Use Permit (PTA Use of School Facilities; Facilities Use Permit Addendum) is approved.

Place an acknowledgement in an event program book.

Announce event sponsors to the audience.

Acknowledge the sponsorship of a particular event in the PTA newsletter or school newsletter, if school district policy permits.

Distribute samples of the sponsor’s products at the sponsored event (if school district policy permits) or if a Facilities Use Permit (PTA Use of School Facilities; Facilities Use Permit Addendum) allows sponsored product distribution.

The PTA may provide a hypertext link from the PTA’s website to the sponsor’s website. PTA must be cautious in how this link is established. It is possible that the existence of a link might cause the sponsorship payment to be considered as unrelated business income, particularly if the link is in the form of a moving banner. A link would more than likely be seen by the IRS as retaining the passive character associated with corporate sponsorship, while a moving banner is more likely to be considered advertising. The duration of the link should correspond to the terms of the contract with the sponsor.

If PTA provides a Web link to an e-commerce business, a disclaimer must be included on the PTA website. For example:

“PTA does not endorse, warrant or recommend any of these products. PTA will receive a small percentage of every sale. If you decide to purchase any products, we thank you.”

An e-commerce business should be seen as a fundraising company acting as an intermediary or buffer between retailers and consumers.

While the PTA obviously would put some effort into promoting the use of electronic shopping, in order to do so without risk, the following conditions must apply:

• Use of the program must be entirely at the discretion of the user;
• Unit cannot have control over whether or not anyone will use the site;
• Unit cannot have control over whether or not they are entitled to any of the proceeds; and
• Unit cannot release member information to a third party.

A variety of e-commerce retailers, also known as charity malls, are donating a portion of purchases made through their sites in exchange for the goodwill the charity can generate. The charity mall allows customers to use the charity mall’s home page as a portal for shopping at any number of participating stores. For each online purchase, the PTA would receive a percentage of the sale. Working with the e-commerce business in this way, the PTA is less likely to be characterized as conducting a business, and instead, is simply receiving royalties.

Each fundraising opportunity must be evaluated individually.

Businesses Should

Understand PTA policies and procedures, especially in relation to noncommercial, nonsectarian, and nonpartisan policies;

Not violate PTA policies, positions and goals;

Exclude all websites that sell or feature firearms, tobacco, liquor, or adult content material;

Have a written policy that supports education opportunities;

Offer benefits to PTA;

Encourage participation in PTA;

Protect the privacy and security of users:

• Prohibit framing, the possibility that a third party is monitoring the transaction, when users are interacting with merchants;
• Have privacy seals from the Better Business Bureau and Trust; and
• Require individuals to provide only minimal information, such as name and e-mail address;

Not require mandatory registration or membership in order to participate in the program;

Ensure that program interface is clear, functional, and easy to use;

Structure payments to the PTA as royalties;

Specifically identify the unit as a separate and distinct entity receiving the royalties, rather than just listing the school site;

Provide a complete accounting for determining the share of royalties on a monthly basis;

Require a minimal amount of effort from the PTA in promotional activities;

Be seen as a fundraising company acting as an intermediary between retailers and consumers.

Note: Purchases made through e-commerce generally will not result in tax-deductible charitable contributions, unless the purchaser can demonstrate that the amount paid for the item exceeded its fair market value and that the excess payment was intended to be a gift to the PTA.

Annual Historian Report – PTA Unit
Annual Historian Report – PTA Unit (Fillable)
Annual Historian Report – PTA Council
Annual Historian Report – PTA Council (Fillable)
Annual Historian Report – PTA District
Annual Historian Report – PTA District (Fillable)
Application for Youth Group Sponsorship or Renewal
Bylaws Submittal Form for Units and Councils (Fillable)
Conflict/Whistleblower Form
Event/Program Planning
…Evaluation
…Event Planning Worksheet
…Final Action Plan
…Needs Assessment Worksheet
…Service Provider/Speakers/Program Participants Check List
Facsimile Consent Form
Photography Release
Volunteer Tally Sheet

1. Form a committee. Participation on this committee falls within the Job Description for Legislative Advocacy Chair.
2. Determine whether PTA will sponsor the forum alone or with another nonpartisan organization, such as the League of Women Voters or a branch of the American Association of University Women.
3. Set the date, and obtain a facility that is centrally located, if possible. If it will accommodate the number of candidates, a school district board room is an excellent location, and the physical environment, including audience space is, in most cases, already set up.
4. Decide whether to videotape the forum. This can be done through a local cable TV station, a high school video production class, or by a volunteer. Video can be uploaded to an online videosharing site and the PTA website. Some local government TV channels are willing to work in partnership with the League of Women Voters and PTA to tape forums for replay. Note: The camera should focus only on the moderator and the candidates.
5. Draft invitations to candidates. Be sure to include:
   a)  Complete information on date, time, and place;
   b)  Guidelines and ground rules for the forum (e.g., there will be only written questions, amount of time allowed for candidates’ responses; topics of questions; forum format (including time for opening and closing statements, candidate order for statements and answers, etc.); rules prohibiting campaign literature distribution in the forum room; if the forum will be videotaped for replay on cable TV or displayed on a website; etc.;
   c)  A request for any information needed from the candidate for promotion of the forum; e.g., biography and photo;
   d)  Name, address, telephone number and e-mail address of forum committee’s contact person;
   e)  Due date for the candidate to respond.
6. Candidate schedules are often hectic. They may be contacted by many organizations with requests for information, personal appearances, and/or forums. Establishing a personal connection by calling all candidates or their campaigns to inform them about the forum, to extend an initial invitation, and to advise them to look for a more formal invitation in the mail can facilitate both the process of organizing the forum and communicating with the candidates.
7. Obtain home addresses and e-mail addresses of all official candidates from the Registrar of Voters, and send invitations by certified mail with a return receipt requested. The signed, returned receipts should be kept on file.
8. Determine physical arrangements:
   a)  Provide adequate accessible seating for attendees.
   b)  Seating for candidates should be in the form of a head table, preferably elevated so they are visible to the audience. Seating assignments should be done by lottery with each candidate drawing a seat number prior to the beginning of the forum. The table should also be draped and water provided for candidates and moderator.
   c)  The moderator is the forum facilitator and may either stand at a podium or be seated at the table with the candidates. If the former, the moderator should be provided with a chair. If the latter, the moderator must be seated in a location that allows for eye contact with all candidates and control over the forum process and decorum.
   d)  Provide an adequate sound system with microphones available to rotate among the candidates, with a separate microphone for the moderator.
   e)  Provide tables for any refreshments and for any literature pertaining to the forum, such as agendas, programs, packets of candidates’ biographies and questionnaire responses.
   f)  Follow facility use permit regulations concerning distribution of campaign literature. Note: If a table is provided outside the forum room for candidate literature, the opportunity must be offered to all candidates. The materials should not be made available until the conclusion of the forum to avoid having them brought into the forum room. It is generally a good idea to place a limit on the amount of literature any individual candidate can place on the table to maintain the nonpartisan nature of the overall forum environment.
   g)  Provide a table for question sorters toward the front of the room. Timers should be located in the middle of the front row and visible to all candidates.
9. Identify volunteer responsibilities:
   a)  Volunteers from PTA and co-sponsoring organizations that organize and/or staff the forum should have no personal ties to any candidacy, and shall not have publicly expressed support or opposition to any of the candidates.
   b)  The forum committee should arrange for the following: greeters for both candidates and attendees; hospitality; person to open the forum and lead the Pledge of Allegiance – may be the moderator or president of the sponsoring organization(s).
   c)  Secure a neutral moderator. Consider requesting a representative of the League of Women Voters or a respected political editor from the local media. The moderator or his/her organization cannot have casually or formally endorsed any of the candidates.
   d)  Question Sorters – Enlist one PTA representative with no personal ties to any candidate, and one representative from each of the co-sponsoring organizations.
   e)  Timers – one to keep track of time, and one to hold up signs to signal candidates.
   f)  Two or three volunteers to hand out blank index cards, pick up questions and deliver them to the sorters.
10. Publicity – articles for the newspaper, radio announcements, cable announcements, fliers for PTA newsletters, etc.
11. On the day of the forum:
    a)  Attendees enter, ushers provide blank index cards on which attendees may write questions for the candidates. Each index card should be used for only one question.
    b)  Begin with Pledge of Allegiance, welcome and a statement of the nonpartisan policies of the sponsoring groups.
    c)  Moderator should go over the basic forum guidelines and procedures that were distributed to all candidates, so the audience will also understand them and know what to expect. The moderator must specify the length of time allowed for opening and closing statements, if they are included, and must also specify the amount of time each candidate will be given to respond to each question. If the forum is televised, this statement will inform the home audience as well. The moderator will also include the following information:

i.  The order of questions will be rotated among the candidates in random order.
ii.  Whether all questions will be in writing or if questions from attendees will be permitted.
iii.  All questions will be screened for relevance, to avoid duplication, and to assure adherence to the guidelines and ground rules. Personal questions or attacks on any candidate will not be acknowledged.
iv.  If a question is directed to a specific candidate, it must be issue-focused. The candidate will have a set amount of time to respond. All other candidates may have an opportunity to respond, if they so desire.
If a question is directed to all candidates, each candidate will have up to one minute to respond.

d)  Timers should hold up signs to signal speakers:

i.   Green: start
ii.  Yellow: 15 seconds left
iii. Red: stop

e)  The moderator should state that verbal interaction between the audience and the candidates during the forum will not be permitted. The forum is neutral territory for a sharing of philosophy, ideas and information, not campaigning.
f)  Begin forum. While candidates are giving their opening statements, screeners can begin sorting questions to be asked of the candidates. If questions have been received through outreach efforts prior to the forum, they should be included in the mix. After the opening statements, the moderator asks the candidates questions received from the question sorters. (Note: In the event attendance is small at the beginning of the forum, the moderator should have a few questions in hand that were collected prior to the forum. This is even more important when the forum is televised.)
g)  Moderator or other designee should close and thank cosponsors, the TV station and home audience, if applicable, and everyone in the forum audience for attending, reminding them of the election date and encouraging them to study the candidates and cast their votes.

Figure A-3

Programs and Member Services

A PTA graduation or prom night event is coordinated by a committee whose chairman is an appointed or elected member of the executive board. The committee members can include other members of the board, the principal, a faculty member, the president (ex officio), and other PTA members appointed by the president.

The major responsibility of this committee is to provide a safe, healthy, legal and supervised recreational event for students in cooperation with the community. A secondary responsibility may be to raise funds to host the event.

Revised January 2011 – Community Concerns

PTA activities in citizenship are designed to provide information and inspiration, to help members engage as citizens. By reminding members of their privileges and responsibilities and involving them in community projects, PTA makes an important contribution to the democratic way of life.

Areas for PTA Involvement
Chairman and Committee Procedures

If the event is held in collaboration with community organizations or other PTAs, each participating unit, council or district PTA should follow the proper approval procedures specified below.

California State PTA strongly urges unit, council or district PTAs to refrain from serving alcoholic beverages at PTA functions. PTAs may not engage in the sale of alcoholic beverages. (See the Insurance and Loss Prevention Guide, Red Section, Alcohol; and Toolkit, Alcohol and PTA Events)

This section defines or explains terms that financial officers and chairmen may encounter in their PTA work.

• Approval by Membership – The requirement that all expenditures, programs and projects, including those specified in the budget, must obtain approval and/or ratification by the membership. All approval of expenditures, programs and projects MUST be recorded in the minutes.
• Authorization for Payment – An authorization for payment documents approval to pay bills for services or supplies, or reimbursement to a member for expenses. After approval by the association, the completed authorization for payment permits the treasurer to write checks. All bills, receipts and invoices should be attached to approved authorization.
• Bylaws – Specific rules of operation for the orderly conduct of business adopted by vote of the members. All PTA bylaws have certain specified, starred sections in common which cannot be changed. Any change in bylaws requires approval of the state parliamentarian, a 30-day prior notice and a two-thirds vote of the membership.
• Cash Verification Form – A form to document receipt of coins, currency and checks from membership, fundraisers, and donations, which protects and safeguards volunteers’ handling of PTA funds.
• Carry-over Funds – These funds represent the amount which is set aside to begin operations at the beginning of the next PTA fiscal year, prior to the onset of fundraising activities.
• Certificate of Insurance – A document issued by the insurance broker certifying that an insurance policy covering general liability is in force. A Certificate of Insurance is emailed to all unit, council, and district PTAs in good standing. A copy may be obtained by contacting the California State PTA insurance broker.
• Channels – The formal communication route through the association to ensure that each level within the association is informed. In PTA, the channel is from the unit to the council (if in council) or from the unit to the district PTA (when there is no council), from the council to the district PTA, and from the district PTA to California State PTA.
• Commingled Funds – Funds from two organizations deposited together. Because a unit is a 501(c)(3) nonprofit association, it must comply with all Internal Revenue Service (IRS) requirements, regulations and laws. The IRS considers all funds in PTA accounts to belong to the association regardless of source. A PTA must handle only those funds over which it has full control and the total amount must be declared as gross income to the PTA. All funds in the PTA account must have association approval for disbursement.
• Contract – A legally enforceable agreement between two or more persons or organizations. Contracts must be approved by the PTA membership before being signed by two elected officers, one of whom must be the president.
• Contributions – Donations of money, property, or services received by the PTA from individuals or businesses. PTAs must follow Internal Revenue Service guidelines for receipts for contributions.
• Embezzlement – Stealing of money entrusted into one’s care by means of fraud for one’s own use.
• Facilities Use Permit – A permit required by most school districts that when approved authorizes the PTA to use school site facilities.
• Fiscal Year – The financial accounting period established by the PTA, and identified in the Bylaws for Local PTA/PTSA Units, Article XIII, Section 7, as a time for the association to close its financial books and records for the past 12-month period. The IRS is notified of the fiscal year at the time of organization when IRS Form SS-4 is submitted.
• Founders Day Freewill Offering – A freewill offering commemorating the founders of PTA. Contributions are forwarded through channels to California State PTA and set aside in a special fund for leadership services. The contributions are considered as “funds not belonging to the unit, council, or district” and are not included as income in the budget.
• Gifts to Individuals – A personal gift to a PTA member or school staff. Gifts to individuals cannot be paid for with PTA funds. Personal gifts include gift cards, gifts for baby showers, secretary’s day, bereavements, weddings, or birthdays. If the unit wishes to recognize an individual, donations must be collected as freewill offerings and the money maintained separately from PTA funds.
• Gifts to Schools – Gifts to the school that benefit the largest number of students possible. Be sure to check with the school district before purchasing any materials for the school. Gifts should be in the form of a donation, presented and accepted by the school board at a school board meeting, and recorded in the school board minutes. Always use a fiduciary agreement.
• Good Standing – The term applies to units, councils and districts that have met all requirements specified in the bylaws, which includes remittance of insurance premiums and membership per capita to California State PTA by the established due dates.
• Grants – A specific set of dollars given by businesses, foundations, and corporations to an organization to perform specific functions. Projects for which PTA is seeking grants must promote the Purposes of the PTA and be relevant to the goals of PTA.
• Gross Receipts – The total amount of receipts before any deductions are taken or expenses are paid. For the purpose of completing the IRS Form 990, monies forwarded through channels to the California State PTA office are not considered gross receipts. This includes membership per capita, Founders Day freewill offerings, and insurance premiums.
• Hold Harmless Agreement – An agreement in which the signing party assumes responsibility for all acts and all liability for any injuries that occur related to an event. PTA MUST NOT SIGN A HOLD HARMLESS AGREEMENT WITHOUT PERMISSION FROM AIM INSURANCE. California State PTA insurance does not cover vendors, concessionaires, or service providers; these entities must provide Evidence of Insurance to each PTA unless annual Evidence of Insurance has been filed with the California State PTA Insurance Broker. A Hold Harmless Agreement may be found in the Insurance Guide.
• Membership Per Capita – The amount of money that must be forwarded through channels for each membership received in the unit in order to be considered a unit in good standing by California State PTA.
• Minutes – The permanent legal record of all action taken by the association and the executive board. All financial reports become a part of the minutes.
• Noncommercial Policy – A policy requiring that the name PTA, a registered service mark, or the names of PTA officers shall not be used in conjunction with the commercial activities of other organizations including, but not limited to, the promotion of their goods and services.
• Ratification – The approval by the membership of an action taken by the PTA executive board as specified in Bylaws for Local PTA/PTSA Units, Article VIII, Section 2b.
• Reconciliation of Funds – The process of bringing into agreement the bank balance as shown on the bank statement, the checkbook ledger, and the check register. The purpose is to ensure that the bank records and the association’s financial records are correct, to identify outstanding checks, and to determine the actual balance against which future checks may be drawn.
• Reimbursement of Expenses – Allowable out-of-pocket officers’ expenses shown as a line item on the budget adopted by the association are reimbursable. Reimbursement is made upon the submission of an expense statement and/or receipts.
• Sales Tax – A tax imposed on the purchase of products. Units are considered consumers by the California State Board of Equalization and they are not required to charge sales tax on merchandise sold. Units do pay sales tax on the price of merchandise purchased for resale or use.
• Scrip – A coupon which may be redeemed in lieu of using cash at the store that issued the scrip. Scrip is purchased, usually from grocery stores, in large amounts for a discount off the face value. The PTA sells the scrip at the full value, raising funds for the unit. Many companies now offer electronic e-scrip.
• Scholarships – Funds to assist students in furthering their educational objectives. The scholarship program, including the amount and number of scholarships to be awarded, must be approved by the membership.
• Sponsorship – Financial support received from a business. The law permits a PTA to receive corporate sponsorship income tax free, if the sponsorship is linked to a specific event and the event is held once per year. The PTA gives the corporate sponsor an acknowledgment of thanks in return for the sponsorship.
• Unallocated Reserve Funds – The amount remaining after making allocations for budgeted programs and activities, and may be used to cover any unexpected or unplanned expenses in the current fiscal year. The association must adopt a budget amendment to transfer funds from Unallocated Reserves to a specific budget category prior to disbursing funds.

Only PTA funds shall be deposited into the PTA treasury. A PTA shall not act as a depository for funds of other organizations. School funds or funds belonging to outside groups shall not be commingled with PTA funds in any way. If a PTA sponsors a project or program in cooperation with the school, all funds shall be accounted for and separated prior to the immediate deposit of the PTA portion into the PTA bank account. All funds deposited in the PTA account become the property of the PTA, and all expenditures require a vote of the association.