PTA Finance FAQs

Please note that the data used to answer the questions below includes 2023-2024 spending numbers and 2024-2025 budget numbers (as most recently reviewed by the PTA Finance Committee in January 2025, including recommended budget amendments to be voted on by the general PTA membership on February 13, 2025).

Who decides how the PTA spends money?

PTA budgets can only be ratified and approved by PTA members. PTA funds raised by PTA members belong exclusively to PTA and can only be used for purposes approved by its members through the budgetary and amending process.

The way this typically works in the Lily B. Clayton PTA is:

The Finance Committee generally uses the prior year's budget to help create each year's budget, with input from school administrators regarding current needs. Feedback from all PTA members is welcome. In 2024, we solicited additional feedback through a survey to help assess community spending priorities, and we will solicit additional feedback in 2025.

What requirements apply to the PTA, the PTA Board, and the Finance Committee with respect to its financial assets?

As a nonprofit organization, the PTA is obligated by the IRS to use "all but an insubstantial portion" of its funds for programs and services that support one of the six PTA purposes. The six PTA purposes are:

In addition, the members of the PTA Finance Committee and PTA Board act as fiduciaries with respect to the organization’s assets and must exercise due diligence and oversight to ensure that the organization is well-managed and that its financial position remains sound. 

How is the PTA budget set up?

The PTA budget includes income and expense items that are generally intended to offset each other unless a budget surplus has accumulated over prior periods.

What goes into the PTA's income?

The following line items appear as income in the PTA budget:

For 2024-2025, an additional line item was added to the PTA budget for "general income" to reflect income items received over the course of the year that are not associated with a specific fundraising program.

What is the percentage breakdown of the items that brought in income in 2023-2024?

The percentage of income for each net income item for 2023-2024 is as follows:

What does the PTA regularly spend money on?

The following line items appear as operating expenses in the PTA budget:

What changes were made to the operating expense budgets for 2024-2025?

As noted above, the PTA made certain changes to the 2024-2025 budget based on feedback received from the community in its 2024 budget survey and actual costs incurred during the fall 2024 semester. Changes for 2024-2025 include:

What is the percentage breakdown of the the items in the operating expense budget for 2024-2025?

The percentage of expenses for each net expense item for 2024-2025 is budgeted to be (note that this does not include long range plan expenses):

Why don't the budgeted amounts get used fully?

As noted above, not all funds budgeted for 2023-2024 were used. A number of different circumstances result in this scenario, including PTA events costing less than anticipated due to in-kind donations, PTA volunteers opting to spend money differently than their predecessors, and Room Parents and teachers not fully utilizing their allotted reimbursement budgets. 

The Finance Committee reviews amounts spent each year to try to fine tune the budget to make it more reflective of current spending needs. Its aim is for operating expense budgets to be fully utilized to support their intended goals.

What happens to the surplus when budgets are not used fully?

When a surplus builds up in the PTA budget because budgeted amounts are not fully utilized or fundraising goals are surpassed, the Finance Committee assesses different strategies for using the surplus, which may include:

What are Long Range Plan expenses?

In addition to its annual operating expenses, the PTA's budgeted expenses include "Long Range Plan" items that include:

I heard Walkathon funds were used for special projects. Is that right?

Generally, no. In our current PTA budget, the amounts expected to be raised by Walkathon and Auction (other than Paddles Up funds) are used to fund the PTA's operating expenses, described in detail above. Our major fundraising events occur in the fall and the spring to provide timely funding for all of the expenses that the PTA incurs over the year.

However, in some circumstances, Walkathon and Auction proceeds have been or may be used for special projects. For example:

I have an idea for a special project I think the PTA should support financially to improve the school. Who should I contact?

If you have input on special projects the PTA may consider for Paddles Up or future budget surpluses, please reach out to president@lilybclayton.org or treasurer@lilybclayton.org. We will also be conducting a more detailed budget survey later this spring.

Whew. I'm overwhelmed by all the budget data. Do you have a more user-friendly explanation of where the PTA spends money?

Yes. Please check out this page that includes a helpful infographic describing the PTA's financial impact.

I saw that a slide is broken and the covered playground needs repairs. Why hasn't the PTA fixed that?

In most cases, necessary repairs are the responsibility of the district. As the PTA aims to prudently steward its financial resources, PTA funds generally are not used to cover expenses that should be covered by the district. 

In addition, projects done at the school must be completed by FWISD-approved vendors in coordination with the appropriate district department. So even when the PTA opts to do projects above and beyond what the district provides, coordination with the district and necessary approvals sometime result in delays.

My family's current financial situation doesn't allow us to pay for the Fifth Grade trip or buy a costume for the Storybook Parade. Can PTA help with that?

PTAs are specifically prohibited from donating money to any person or family. However, the PTA subsidizes the costs of the Fifth Grade Trip to reduce the per-student cost across the board. In addition, outside of the PTA, Ms. Ball organizes a scholarship program to assist families who need financial support to cover half of the trip cost.

The PTA's Library Liaison collaborates with Mrs. Bradshaw to collect donated costumes and books so that every student who wants to participate in the Storybook Parade has the opportunity.

The PTA's Helping Hands volunteers collaborate with the school counselor to assist with community needs as well.

Why do Auction tickets cost so much?

Tickets to Auction are priced consistently with our PTA fundraising goals, keeping in mind the costs that go into making Auction happen (venue, linen and equipment rentals, catering, etc. -- expenses that have gone up in cost significantly in recent years). To remain mission-focused, our PTA is responsible for ensuring that any PTA event serves our charitable purposes, which are described further above. Auction's primary goal is to raise funds to support the PTA's annual budget and all the wonderful work the PTA does each year, so every ticket is priced in a manner that allows us to at least cover the cost of attendance.

I'd like be more involved in the PTA and its spending decisions. How can I do that?

To get more involved in the PTA, you should sign up for a PTA volunteer role next year. If you are a PTA member, you can also attend the PTA's general meetings and Executive Board meetings to learn more and vote on the annual budget and budget amendments.

PTA financials are open to school families and can be requested from our Treasurer at treasurer@lilybclayton.org. They are also shared at every PTA meeting, and our PTA meeting dates are reflected on the calendar.

If you have input on special projects or new programs for the PTA to consider, please reach out to president@lilybclayton.org or treasurer@lilybclayton.org. We will also be conducting a more detailed budget survey later this spring and would love for you to provide helpful feedback through that process.