The Business of PTA – Finance, IRS Compliance and Risk Management 2016 National PTA Convention & Expo Orlando, FL Presenting Sponsor:

The Business of PTA Don Romoser National PTA Board of Directors Jim Thomasell Chief Financial Officer, National PTA Wayne Bauman Secretary/Treasurer, National PTA

PTA Mission The overall purpose of PTA is to make every child’s potential a reality by engaging and empowering families and communities to advocate for all children.

PTA as a Business 5.76M Small Businesses in the U.S. 5.17M Employ <20 29% Have Annual Revenue <$10,000 52% Have Annual Revenue <$50,000 How Big is Your Business?? Source: 2013 U.S. Census Bureau

State Filings Articles of Incorporation Sales Tax Exemption Registration as a Non-Profit Income Tax Filings Political Registrations

Current Bylaws Needed Legally Helpful Organizationally General Association Structure Refer to State for Needed Articles and Template Policies & Procedures

Budgeting Set Committee Determine Goals In Consultation with Members Review Past Performance Determine Additions, Changes, Adjustments Must Be Approved By General Membership Subsequent Changes Must Be Approved By General Membership –Unless Bylaws State Some Authority To Board

Membership Fees Support Association Goals Provide True Membership Benefits –Good to be a member –Membership advantages Product/Services Discounts Communications and Networks Voting Privileges

Review of Financial Records Minimum 2 Members, Non-Signers on Accounts Must Report to Membership Completed by a Financial Review Committee Sample All Accounts and Transactions May Be External Review Required for Bonding Purposes –Plus Monthly Review of Bank Statements

IRS Form 990 Filing Due to IRS by November 15 th for 6/30 FYE Must File –990N / E-Postcard - $50K or less (Gross Receipts) –990EZ - $50K - $200K –990 – over $200K Training Available Instructions at pta.org

Insurance Required for Liability Directors and Officers General Liability Bond for Theft, Fraud and Embezzlement Medical Should cover most PTA events and programs

Banking Cash Handling –Double Count & Verify –Daily Deposits Reconcile Checkbooks –Monthly Review by Non-Signer Second Signature Check Requests Protect Checkbook

Theft, Fraud & Embezzlement Warning Signs Treasurer’s report delayed or non-existent Delayed deposit of cash receipts Missing supporting documents Multiple corrections to the cash book Checks bouncing Lifestyle or behavior changes of staff or volunteers

Contracts Legally Binding Should be President Only as Signatory Should be approved by the Executive Committee and/or Board Should Not Encumber Future Boards

Officer Information Legal Requirement Facilitates Communication List All Board Members and contact information Essential – President, Secretary, Treasurer Only One President –Co-President Listed Separately

PTA Mission The overall purpose of PTA is to make every child’s potential a reality by engaging and empowering families and communities to advocate for all children.

Thanks For Attending Next General Session Will Resume 9:00 a.m.