Embedded Files
Financial Best Practices
Financial Best Practices
Nonprofit financial best practices include developing a clear financial plan with a realistic budget and cash flow projections, implementing strong internal controls and robust cybersecurity measures to protect data, maintaining transparency with stakeholders, and conducting periodic outside financial reviews. When your PTA has implemented sound best practices, it protects your officers from liability, grows trust in the public, and provides sound accounting practices for the life of the association.
PTA Specific Policies
PTA Specific Policies
The guidance located on our website is specifically for the nonprofit registration of affiliated PTA entities in Minnesota. Although most nonprofit accounting practices are simular, the guidance found here should not be used by unaffiliated groups.
The guidance located on our website is specifically for the nonprofit registration of affiliated PTA entities in Minnesota. Although most nonprofit accounting practices are simular, the guidance found here should not be used by unaffiliated groups.
The purpose of this letter is to describe the structure of local PTAs and to confirm that they represent independent nonprofit entities which are subject to direction only by their state PTA and the National PTA.
Gift cards are considered a monetary form of payment. Please read this policy to help your PTA best manage use of Gift Cards.
“Sunshine Funds” refer to a local PTA unit’s effort to provide assistance to an individual or family in the case of a catastrophic event, such, fire, or other disaster. While these efforts are extremely well intentioned and admirable, using the funds of a local PTA for such a cause could result in that local PTA losing their tax‐exempt status with the IRS.
Financial Proceedures
Financial Proceedures
Internal financial review is conducted by an internal committee. This committee should not include anyone with signature authority over the PTA's bank account or any relatives to a person with signature authority. The committee periodically reviews all of the Treasurer's records for errors.
Financial Guidance
Financial Guidance
Teacher Appreciation Spending
Teacher Appreciation Spending
Nonprofits can spend money on any activity that directly furthers their stated mission, including program services, fundraising, and operational expenses. However funds must be used for charitable purposes, not private gain, and must adhere to donor restrictions. Spending excess funds to provide a benefit to individuals could risk your nonprofit status, per IRS policies.
Key Considerations for Spending:
Budget Percentage:Total hospitality spending (including appreciation) should not exceed 5% of the PTA's total annual budget.
Budget Size: A group with a $50,000 budget might spend $1,000 or more, while a smaller group might limit spending to roughly $400.
Mission Focus: PTA funds should primarily benefit students. High spending (e.g., 40% of the budget) on staff gifts/food is often discouraged if it fails to support the student-first mission.
Refer to the 'Gift Card Policy' on this page to get guidance on management & disbursement of gift cards.
A Local Unit's Executive Board may adopt the use of online banking systems, including, but not limited to, online banking with their primary banking provider, online payment processors, and/or online accounting tools such as Quickbooks. PTA officers that register for online access must provide access to at least one other executive member in the PTA, preferably the president. Click the link above to read more.
Find these downloadable tools in your local leader kit at PTA.org
Find these downloadable tools in your local leader kit at PTA.org
Page updated
Report abuse