Virginia PTA Position on Fund-raising

The following is the Virginia PTA/PTSA Position on Fund-raising. Please visit the Membership Library section for the Financial Management Guide which includes tips on responsibly funding your PTA.

Position on Fund-raising:

The PTA or PTSA can be the means through which community standards are established. Therefore, its own standards must be consistently held high. This can be done through unfaltering allegiance to National PTA policies and principles. They are an expression of a desire to respect the rights of others and to act for the common good. When programs are being formed, or fund raising projects being chosen, commercialism, sectarianism, or other policy violations should be avoided. The greatest service PTA can perform is to promote support for quality public education.

1. A PTA or PTSA is NOT a money making or money raising organization. The purpose of a PTA or PTSA is to promote the welfare of children and should be primarily carried out through educational means.
A. Educating members to better perform their duties in connection with children.
B. Educating parents and teachers to a better understanding of each other's aims and viewpoints so they can cooperate more closely.
C. Educating the community to the needs of the schools and of other community enterprises working for the welfare of children and youth.
D. Educating the community to work against factors harmful to children and youth.

2. Material aid to the school is not the function of a PTA or PTSA. The PTA serves as a liaison to help the community understand the problems and needs of education, and once the need is established, the purchase of materials and equipment for public schools should come from the public budget. PTAs and PTSAs should provide service, not material things for the school or children.

3. Primary emphasis of the PTA or PTSA should be on the promotion of the Objects.

4. Funds raised should be for a definite, pre-determined, and budgeted purpose.

5. The exploitation of children for fund raising activities should be avoided. Children may be included in programs that are an outgrowth of class work or projects. The regular school day schedule should not be disrupted, nor should the children be expected to give up their playtime.

6. Protect the instructional time of children. Fund raisers which promote vendors/companies using school time for assemblies for training of students as sales persons for their products should not be planned.

7. The name PTA or PTSA (or names of its officers) shall not be used to benefit commercial organizations. Before embarking on any joint financial endeavor with commercial concerns as a fund raising activity, you should consider whether the arrangement can be viewed as an endorsement of a product, company, or foundation. Any aspects of endorsement must be avoided.

8. PTA or PTSA funds should be used for parent teacher work. It is not proper to raise money for PTA or PTSA activities and then donate it to another organization.

9. Do not engage in frequent fund raising programs. This leads to a departure from primary purpose of the association, which is to educate its members about the needs of children, not to raise funds.

10. Protect your tax exempt status. Disregard of the prohibition against substantial commercial activities could result in having to pay taxes, penalty, or the ultimate sanction, loss of tax exempt status. Local PTA units that engage in extensive fund raising activities not associated with their primary purposes become liable to file IRS Form 990T when unrelated business income exceeds $1000 and pay a tax on unrelated business income.

(National PTA Handbook)

11. Do not engage in any fund raising activity which might interfere with the accreditation of your school. All elementary schools in Virginia going through the accreditation process have to include in their self-study the following standard as being carried out by their school: "Prohibiting fund-raising activities that involve elementary students in door-to-door solicitation and so state in the student handbook." (Standard 9.1, 6b - Regulations Establishing Standards for Accrediting Public Schools in Virginia. VR
270-01-0012)

Adopted by the Virginia PTA Board of Managers
November 5, 1992

Fundraising Do's and Don'ts