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When paying the cost of a teacher aide or special instructor, funds should be deposited with the school district, so that the employee is covered by school district insurance (See Fiduciary Agreements and Gifts to Schools). In addition, the subject matter for the enrichment program must be approved by the school district, and the use of school facilities must be approved by the principal and the school district. If the school district insists the program be funded and staff paid directly by the PTA, care must be given (see PTA as an Employer).

Grants are specific funds given to an organization to perform specific functions. Unit, council and district PTAs may apply for grants in order to fund many of their projects and programs. Businesses, foundations and corporations give grants to causes they consider worthwhile. When applying for grants, PTAs may want to stress the points that public schools produce future employees, and that donations or gifts are tax deductible, as PTA is a 501(c)(3) organization. Organizations like the American Cancer Society, March of Dimes, Kiwanis, and Lions Clubs will make funds available for projects that fulfill their goals, such as programs addressing child abuse or substance abuse prevention.

The project for which a PTA is seeking grant funds must be one that promotes the Purposes of the PTA, is relevant to the PTA’s goals, and has been approved by a vote of the membership. PTA members must be committed to following through with the stated goals of the program. The project should be one that will not commit the participation of succeeding PTA boards.

If the PTA is serious about seeking grants, find someone with expertise in writing grant proposals. The local school district may have a qualified staff member. Seek the guidance of people who are knowledgeable about the intricacies of writing proposals.

The first step is to gather information about possible sources of funding. These include federal and state governments, private foundations, community foundations, private individuals, and nonprofit organizations such as United Way. Unit, council, and district PTAs may apply for grants in order to fund many of their projects and programs.

Grant Writing

A grant writing chairman can be appointed by the president to coordinate PTA grant writing efforts. When a PTA is interested in applying for outside funds to help implement a PTA project, a committee should be appointed by the president to look for sources of funding and to prepare the proposal.

Grant Request Process

Contact the grant source in writing with a brief letter of intent explaining the project.

Request the grant specifications from the donor and follow them carefully.

Find out who is responsible for reviewing grants and send the proposal to that person.

Follow up with a phone call if the donor has not responded within six to eight weeks.

Seek a personal meeting to explain the PTA’s proposal further. Be open to questions. Be succinct. If the proposal is not funded, ask why.

Recommend revisions for future proposals.

Accept the final decision graciously. Always properly acknowledge the donor’s generosity when the request is funded.

Proposals

When writing a proposal, provide detailed information about the proposed project. Most grant proposals have a distinct format, but the information sought by donors is often the same:

• An introduction that describes the PTA association and its purpose;
• An overview of the project and its specific goals;
• A statement that defines the problem the project seeks to solve;
• Statistics that substantiate problem identification;
• The target population;
• The project’s value to PTA and to the school community;
• The proposed outcomes of the project;
• An explanation of the activities the grant will fund;
• A timeline for completion of the project;
• A description of how the project will be evaluated; and
• A proposed project budget that includes both expenses and in-kind services.

The grant writing chairman or committee should maintain a file of completed applications, individuals who are resources, and possible sources of funds to assist future committees. If a grant is awarded, the grant writing chairman is responsible for complying with the donor’s reporting requirements, including providing the unit’s IRS Employer Identification Number (EIN). A PTA may furnish a donor with an EIN if requested.

Verify that the donor can write the check to the name as it is stated on your bank account. Many companies issue the check to the PTA California Congress of Parents name and this may cause an issue at the bank unless your account has both versions of your PTA’s name on it.

The treasurer must track all expenditures carefully; this information is a requirement in all grant donor reports. Keep the association aware of the progress of the grant application process, and use the reports submitted to the donor to inform the association of the project’s implementation progress.

All action taken on grant applications or project implementation must be recorded in the PTA minutes.

When developing a PTA budget, consider including the following line items:

Carry-over Funds: Carry-over 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. To calculate the amount of this reserve, review the prior year’s Annual Financial Report to determine which operation or program expenses require funding during transition, and estimate costs for these items in the new fiscal year.

Convention: The annual California State PTA convention is usually held at the end of April or the first part of May. The unit should budget enough money to cover the cost of registration, hotel room, transportation and food for the allowed number of delegates based on the unit’s membership (Attending Conventions and Conferences).

Donations: PTAs may ask community supporters to donate funds to the PTA for general use or for a specific program.

Fundraisers: Fundraising income is the gross income from fundraisers. List each fundraiser individually. The expenses for conducting each fundraiser should be listed under Expenses individually by fundraiser.

Gross Income: This includes the total amount of income for the year, excluding council, district, State, and National PTA portions of per capita dues and freewill offerings.

Insurance: Participation in the California State PTA insurance program is required of all PTAs in California. Budget an amount that is similar to the actual expense from the previous year’s premium plus 10%. Units are notified of the premium amounts by October 1. The premium must be submitted to AIM by December 20, or a late fee of $25 will be assessed by California State PTA.

Membership Dues: Each association determines its own membership dues, but a portion of each membership must be forwarded through channels. The forwarded funds are listed as “Funds Not Belonging to the Unit.” This line of the budget should only reflect the amount of dues the unit retains as income.

Membership Envelopes: The purchase or printing of membership envelopes is listed as an expense.

Reimbursable Expenses: PTA should reimburse executive board members for any approved out-of-pocket expenses. PTA funds may not be used for personal expenses, gifts, personal acknowledgments, or personal use items. Appropriate out-of pocket expenses include photocopies, office supplies, etc. Unit, council and district PTAs should budget for out-of-pocket expenses and ensure the budget is shared equitably among officers/chairmen in accordance with job responsibilities. Members should be reimbursed upon submission of a signed Payment Authorization/Request for Reimbursement form. Receipts must be submitted for all reimbursable expenses. Unit, council and district PTAs may not budget an officer’s allowance. The IRS considers an allowance as miscellaneous income that must be declared by the recipient as such and will be taxed accordingly.

Staff/Volunteer Appreciation: PTA resources may be used for hospitality for staff/volunteer appreciation as long as it does not represent a significant amount. “Not of a significant amount” was previously defined by the IRS as an amount that does not exceed 5 percent of the nonprofit organization’s annual budget (see Staff Appreciation). PTA funds cannot be used to purchase personal gifts for staff or volunteers, including gift cards.

Training/Workshops: Budget funds to send executive board members to council, PTA district, and California State PTA workshops/meetings.

Unallocated Reserve: Unallocated reserve funds represent 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 with approval of the association. The budget should be amended to reflect funds transferred from Unallocated Reserves to other expense categories.

Restricted Reserve: In planning the budget, it is permissible for PTAs to have a savings account to hold funds for more than one year for the following reasons:

• Efficient management of restricted funds;
• A PTA program requires large donation to the school and the school district requires advance notice if the PTA cannot continue to fund the activity; i.e., computer equipment or teacher aide salary; and
• Monies to finance long-term or unexpected but approved projects or programs, i.e., playground project.

As a guide, the savings account reserve should not exceed one-half of the association’s budget for an average year.

PTAs are often asked to provide assistance with the coordination of relief activities when a disaster strikes or personal tragedy occurs in a community. While PTA may appear to be a logical association to provide this coordination, PTAs are prohibited from making personal gifts to a specified family or individual. A PTA may not collect and disburse funds for the benefit of specified families or individuals. A PTA’s EIN may not be used for the establishment or maintenance of any financial account designated for the benefit of specified families or individuals. The IRS may impose penalties if these rules are not observed.

Unit, council and district PTAs may participate in community relief efforts by making a monetary donation to a relief organization recognized by the IRS as a 501(c)(3) organization. Organizations such as the American Red Cross, the Salvation Army, and United Way handle donations for relief efforts under benevolent fund procedures, which means that funds are received for disbursement to a broad class of potential recipients. These organizations may not accept funds for a specific family or individual.

In order for PTA funds to be donated, PTA financial procedures must be followed. The membership is the only body authorized to approve, or ratify, the donation to another 501(c)(3) organization. The approval of the donation must appear in the minutes of a meeting of the association.

PTAs may participate in disaster relief efforts by

• Encouraging members to make personal donations to a relief organization of individual choice;
• Encouraging members to volunteer to assist at a location providing services to disaster victims;
• Providing information on local blood-drive locations;
• Providing information about other relief efforts in the community;

PTAs may participate in personal tragedy relief efforts by

• Working to locate another agency or organization that may handle donated funds to benefit the affected family or individual;
• Offering to meet with other community leaders to arrange with a local bank for the establishment of a special account to handle donated funds (Cannot use PTA EIN).
• Providing information about benefit or relief efforts in the community.

A PTA may elect to organize or support educational programs, subject to PTA guidelines and insurance limitations. Such programs could range from hiring staff by gifting monies to school districts, supporting classroom field trips or supporting an academic enrichment program. All projects and programs must be voted on and approved by the current year’s membership before any expenditure may be made.

Staffing, tutoring and enrichment programs must be based on the needs of the school community. Consult with the principal, the faculty, the program director and the parents. The program should have positive benefits for all participants.

PTA Funds versus School Funds
Field Trips
School Staff Positions
Computers, Technology and Other Major Purchases
Academic Enrichment Programs
Personal Gifts
Hospitality
Staff Appreciation
Volunteer Appreciation
PTA and Education Foundations

Fiduciary Responsibilities
Signs of Good Financial Procedures
Sample Financial Calendar of Activities
Records Retention Schedule and Destruction Policy
Commingling of Funds
Fiduciary Agreements and Gifts to School
Contracts
Hold Harmless Agreement

Miscellaneous Operating Information
Special Request for Professional Opinion
PTA-Provided Babysitting Services
Handling Requests for Relief Assistance
School Bond and Other Ballot Measure Campaigns

Community betterment is one of the chief aims of PTA endeavors. This can be brought about through cooperation with other agencies that are doing child welfare work in the community.

Unit, council, and district PTAs should not enter into permanent cooperation with any agency. PTAs may cooperate with an agency by publicizing and distributing information about an event at meetings and through newsletters.

PTAs may cooperate on special projects with any agency whose purposes and methods are consistent with PTA policies. If, for any reason, the project cannot be completed during the administration in which it was authorized, the new administration should review it before approval.

PTAs may cooperate with any agency through committees. They shall not set up a cooperating committee as a permanent or continuing committee. A cooperating committee continues only through the life of the special project upon which cooperation is advisable.

Co-sponsorship involves the development and planning of an event with other groups, agencies, or organizations. PTAs should participate actively in each cooperative undertaking to ensure that goals and procedures are consistent with the Purposes, basic policies and principles of the PTA. When an event requires the signing of contractual agreements, the responsibilities, financial obligations, and liabilities must be clearly defined, discussed, and authorized by the co-sponsoring PTA prior to the signing of such contracts. For protection in the event of an accident or lawsuit, each co-sponsoring group must have its own adequate liability insurance. Prior to the event, all printed information, handouts, and selection of speakers should be reviewed and approved by the co-sponsoring PTA’s executive board.

The right of members of California State PTA to be official representatives of California State PTA in public relationships (including the publishing of names on the stationery of other organizations) shall be conferred only by the Board of Managers or the California State PTA president. A person who renders service to another organization as a representative of California State PTA may accept an honorarium to be donated to California State PTA.

PTA funds shall not be used for expenses of those who have accepted appointments to term committees in outside agencies without approval of the California State PTA Board of Managers.

Coordinating with Community Groups

The policy of the National PTA encourages participation of PTAs in community groups. It is of paramount importance that PTAs be a part of community councils having goals similar to those of PTA.

The PTA unit, council or district shall make sure that the proposed rules of procedure or bylaws of the group do not conflict with the bylaws of the association.

Community groups with which the PTA may cooperate are those that are not set up as action groups nor to operate programs, but rather to pool information and develop resources for service to children, youth, and families in the community. The abilities and strengths of each organization can be used efficiently to solve problems that require combined influences and joint planning.

Each organization represented in the community group retains its own identity and is not committed to a course of action outside its own field of operation. The PTA unit does not “join” another organization. Participation in these groups should be through an official representative of the PTA. It is the responsibility of this representative to inform the PTA of activities of the community group, to vote on routine organizational business of the group, and to act on policy matters under the direction of the PTA being represented.

Many community groups have operating budgets to cover staff and other expenses. PTA policies concerning legitimate use of PTA funds should be strictly observed (Fiduciary Agreements and Gifts to Schools, Budget, Financing Programs at the School, Budget (Sample)). It is the responsibility of the district PTA to determine an equitable amount that may be budgeted toward the expenses of community groups. All contributions to these groups require the approval of the association.

Limits of Cooperation (Conditions Governing Sponsorship of Youth Groups)

California State PTA considers the work done by youth-serving organizations to be of tremendous value.

Conditions for Sponsorship

Reinforcement of the work of youth groups should be given through moral support and encouragement, helping to secure qualified and able adult leadership, helping to arrange for a meeting place, and providing opportunities for youth service. No obligation is assumed for, nor shall the PTA be responsible or liable for, the actions of any individual acting as a leader, a participant in, or in some other capacity for a sponsored group.

One member of the executive board of the sponsoring PTA shall serve as coordinator and representative of any PTA -sponsored youth groups. The local unit has certain responsibilities toward any group with purposes so closely related to its own program. It should seek to arouse interest in the need for youth groups and encourage formation of such groups and stimulate leadership.

The PTA assumes no obligation, expressly or otherwise, responsibility, or liability for the competence, the actions, or the omissions of any person or persons who may have been or may become active as a leader, participant, or otherwise, in any organization or group sponsored by the PTA.

The PTA assumes no obligation to give financial support to groups that it sponsors, including payment of individual dues or the purchase of uniforms or equipment. The PTA may help provide suitable fundraising opportunities for youth groups, giving publicity to their projects and recognition to their achievements.

In case of need, the unit may vote to hold a special fundraising project to provide such items as group equipment, handicraft supplies, or camperships.

To avoid misunderstandings and to facilitate harmonious relationships between the PTA sponsor and the youth group, a copy of the conditions governing sponsorship should be permanently attached to or be a part of every sponsorship agreement (Application for Youth Group Sponsorship or Renewal).

Boy Scout Groups

California State PTA continues to support scouting and the opportunities scouting provides for young people. However, the Boy Scouts of America seeks local organizations as sponsors (signing charters) and the Scouting Annual Charter Agreement includes the following responsibilities for that organization:

• Conduct the scouting program according to its own policies as well as those of the Boy Scouts of America,
• Include scouting as part of its overall program for youth and families,
• Appoint a member of the organization to coordinate all scouting operations at the site. He or she will represent the organization to the scouting district and serve as a voting member of the local Boy Scout council,
• Select a scouting committee (minimum of three) of parents and members of the organization who will screen and select local scouting leaders.

While an individual may choose to volunteer with Boy Scouts of America or other youth groups, California State PTA directs local PTA units, councils and districts: DO NOT SIGN ANY CHARTER OR YOUTH GROUP SPONSORSHIP OR RENEWAL FORM WITH THE BOY SCOUTS OF AMERICA as:

• A PTA representative may not commit the PTA to the bylaws and other regulations of Boy Scouts of America.
• Local PTA leaders are generally not qualified to screen and select the local scouting leaders.
• The California State PTA insurance program provides no coverage for a PTA leader sitting as a representative to the scouting council nor for sponsoring another organization.
• The California State PTA insurance program provides no liability coverage for the actions of any individual acting as a leader, a participant in, or in some other capacity for another organization.

May 9, 1923 (Printed to include amendments of May 13, 1925; May 26, 1926;
May 4, 1960; April 30, 1975; May 5, 1978 and May 5, 1982)

KNOW ALL MEN BY THESE PRESENTS:

That we, the undersigned, a majority of whom are citizens and residents of the State of California, have this day voluntarily associated ourselves together for the purpose of forming a corporation under the laws of the State of California and we do hereby adopt these articles of incorporation and certify —

(1) That the name shall be the CALIFORNIA CONGRESS OF PARENTS, TEACHERS, AND STUDENTS, INC. (Amended May 13, 1925, Court approved November 16, 1925, and May 5, 1978.)

(2) That the purposes for which it is formed are to carry on charitable, educational and philanthropic work; to accept and administer under the terms and conditions thereof, endowments, annuities, devises, bequests, memorials, gifts and contributions; to erect and construct and thereafter maintain a building or buildings for use and purpose of the Congress and its members; to buy, acquire and obtain by grant, gift, devise, lease or otherwise, real and personal property for the purpose of the Congress and its members; to encumber by mortgages, deeds of trust or otherwise, its real or personal property and to execute, issue and deliver its promissory note or notes and its written obligations in connection therewith; to borrow and loan money with or without security; to rent or lease property owned by it; to exercise such other and further powers as are incident and necessary to carry out the above purposes and the ordinary and usual business of a State organization such as the one hereby incorporated. (Amended May 4, 1960, and April 30, 1975.)

(3) The principal office for the transaction of the business of the corporation is located in Sacramento County, California. (Amended May 4, 1960, and May 4, 2007.)

(4) That the term for which said corporation is to exist is: perpetual. (Amended May 4, 1960.)

(5) That said corporation is organized under and pursuant to the General Nonprofit Corporation Law of the State of California, and shall have no capital stock and is one that does not contemplate pecuniary gain, profits or dividends to the members thereof. That no part of its earnings or resources shall inure to the benefit of any member or individual, except for an individual who indirectly benefits from compensation received for performing specific administrative tasks in the functioning of the PTA. That the property and assets of this corporation are irrevocably dedicated to charitable and philanthropic purposes and upon the organization’s dissolution or abandonment by the members, will not inure to the benefit of any person or persons, but shall be distributed to the National Congress of Parents and Teachers, or to the State of California. (Amended May 4, 1960, and May 5, 1978.)

(6) That the number of directors shall be not less than thirteen (13) nor more than sixteen (16) with the exact number of directors to be fixed, within limits specified, by approval of the members, in the manner provided in the bylaws. (Amended May 26, 1926, April 30, 1975 and May 5, 1982.) Further, that the names and residences of the directors who are appointed for the first year and to serve until the election and qualification of such officers, are the following:

Mrs. Harry J. Ewing, 70 E. William St., San Jose, Calif.
Mrs. Hugh B. Bradford, 1550-39 St., Sacramento
Mrs. John F. Sheehan, 117 Alpine Terrace, San Francisco
Mrs. Mabel W. Dorsey, 435 So. 10th St., San Jose
Mrs. Arthur Painter, 2209 Ward St., Berkeley
Mrs. Blanche B. Bates, 3584 Grim Ave., San Diego
Mrs. James J. Dale, Mountain View
Mrs. G. H. Goodale, Anaheim, Calif.
Mrs. Jerome O. Cross, 604 Benton St., Santa Rosa
Mrs. Charles F. Gray, Los Angeles

(7) That these articles are filed pursuant to authority granted at the annual convention of the California Congress of Parents and Teachers, Inc., duly and regularly assembled, held at Stockton, State of California, on May 9, 1923; that the directors named in these articles of incorporation were chosen by a vote of the convention.

(8) That all of said proceedings were held in accordance with the constitution and bylaws of the California Congress of Parents and Teachers, Inc.

IN WITNESS WHEREOF, we, the President and Secretary of said California Congress of Parents and Teachers, Inc., have hereunto set our hands and seals this 9th day of May, 1923.

MRS. HARRY J. EWING, President, (Seal)
MRS. JOHN F. SHEEHAN, Secretary, (Seal)

Original Articles of Incorporation and all amendments have been filed and accepted by the Secretary of State of the State of California. In addition, certified copies have been filed with the County Clerk of Los Angeles County.

Copies are filed in the state office of the California Congress of Parents, Teachers, and Students, Inc.