25k in the bank

[supermario10]

I have joined the PTA at my twins school and at a recent meeting found out there is 25k in the pta bank account. They are at a small school and this seems excessive, shouldn't it be spent on the children rather than sat in a bank? They are looking for new fundraising ideas but surely they should be spending some too? How do I raise this or is it normal. Thanks in advance for any advice.

@icypompoms and they will have benefitted from funds raised before their time.

The ethos of our primary PTA is that money raised should be spent on the enrichment of current students who's parents' have helped raise the money, not to be kept to be spent on future students. Some money is ring fenced for medium term big spends like playground equipment, but you shouldn't just keep raising money for the sake of it with no be benfit to current pupils.

That would be the schools budget that would pay for that not the PTA

Small School PTA member, no we wouldn’t keep that kind of money in the bank. We’ve just spent about £5,000 of £6k that the previous PTA had let mount up. IMO unless saving towards a big project like outdoor play equipment (which would happen once in a blue moon) then the money should be spent often so that the children whose families have supported fundraisers reap the benefits whilst still pupils at the School. Our PTA would not keep emergency money for repairs etc as that is not our responsibility.

There's nothing legally or morally wrong in a PTA having this sort of reserve. It would be silly to go looking for something to spend it on, just because it's burning a hole in your collective pocket.
B ut you could certainly raise the subject at the next meeting if you like. What would YOU like to spend it on?

Why on Earth is it disgusting? 😅

For a small charity with a service base that constantly churns, keeping significant amounts of money rather than spending it on the charity’s mission is generally frowned upon by those who look at ethics in the third sector.

The purpose of the PTA is to provide extras for the children in the school and is generally raised from a community who expect it to be spent on the current set of children, not saved up for a later set.

Money losses its value over time, especially when inflation is high. It is very unlikely that a small nonprofit could make enough investment interest to compensate the community they are supposed to serve for the loss of not having the benefit of the expenditure.

I wouldn’t call it disgusting but I agree it’s poor stewardship.

This does assume that 25k is significantly more than their annual turnover , that it isn’t about to be spent, that they don’t have a particular need for high reserves, and that it isn’t part of long term fundraising earmarked for something specific.vAny one of which may apply in the OP’s case.

Perhaps with that much In the bank you might suggest in this current economic crisis that they give cash strapped parents a break from donating to yet ANOTHER PTA fundraiser.

Some families are struggling to feed their children and heat their homes never mind being guilted into donating for a 'non specific' reason with 25k Sat In bank.

Agreed. That’s what my disgusting comment meant.
If it was a big school with a commitment to cover a salary it would be understandable. Even if the money is there towards a large spend, it should be reviewed as circumstances for all he stakeholders have changed so much.

Our PTFA needs around £15k in the bank for its annual fireworks display. But outside of that they are always contributing towards things for the school. New outdoor classroom and resourcing the farm area, resurfacing the playground with painted games areas, benches, providing the various after school clubs resources.

If you've just joined the PTFA, have you had chance to look at last year's financials and agm to know whether this is being out towards a big purchase or whether it is 'just' sitting in the bank. I'd assume if you're a parent you would be aware of the school were fundraising for a specific project. But these things can easily slip by parents.

Can't remember now if PTA's are registered charities, but if they are then the Charities Commission have rules on the maximum amount that should be kept in the account. From when I was our pre- school's treasurer, then administrator 10 odd years ago, it was 15k. Worth checking, Or you may have a constitution?

There is not a fixed limit that charities are allowed to keep in the bank. Each PTA will separately apply for charitable status if they want the benefits and responsibilities of that. The charity's trustees set rules on how money should be spent, which must be in accordance with it's own articles of association. Please don't just make up nonsense off the top of your head, it doesn't help anyone.

No need to be so rude. I stated these were the rules 10 odd years ago, which they were. Not sure if it is still the case or not.

We had c25k in the bank and were advised it was too much, so we built a large canopy to the side of the building.

25k is absolutely nothing for a school!

It was not a Charities Commission rule 10 years ago either. It's not my fault that you didn't understand what was going on, but it's still important for you not to peddle random nonsense.

I am a PTA Chair. We raise money through the year and only give a lump sum to the school once a year, in October after the AGM. We agree with the school at the beginning of the academic year what we’re raising funds for and this is made clear to parents so it’s clear what we’re asking money for; last year we refurbished and restocked the school library and this year we are upgrading the IT suite. It’s unusual for your school to not have a project to aim for. £25k is a lot of money to just sit there! We have £13k in the bank and this will be added to and given to the school after the next AGM.

We had that amount sitting there once but it was there for a reason, a sizeable contribution to a building upgrade.

Why are you asking us and not the PTA chair?

Unless there's a specific fundraising target for e.g. large play equipment, computers etc, I would be extremely annoyed to be a parent at a school where the PTA routinely kept huge amounts of cash in the bank. We're constantly asked to put our hands in our pockets (we probably pay on average £5-10 per month per child, plus easily £20-£30 at every summer fair, Christmas event, Easter fun day etc) and my reasonable expectation is that this will benefit my children, not someone else's kids who come along in 5 years. They can fund the PTA themselves at that time.

You need to raise the issue with the PTA. It's a valid question to ask but nobody on here can tell you the answer.