Summary of Key Points:
- The role of a PTA treasurer in Texas involves creating financial reports for all accounts, preparing an annual budget, and understanding the sales tax exemptions for PTA purchases and fundraising activities.
- Texas PTAs must adhere to financial regulations such as depositing funds within five days of receipt, signing checks with two officers, and following a specific financial reconciliation process.
- All fundraisers must be pre-approved by the PTA board, and funds raised should align with the PTA’s purpose. Special regulations in Texas apply to raffles, including limitations on ticket sales, prize values, and requirements for documentation.
- Texas provides specific resources for PTA treasurers including a resource guide, e-learning courses, and financial tips newsletters. Reviewing these is important for keeping your PTA compliant with applicable laws and regulations.
- FutureFund offers tools to help treasurers streamline their duties, such as ecommerce tools for fundraising, automated financial reports, website donation campaigns, and data collection tools for analyzing donation trends.
The Lone Star State has over 9400 actively licensed PTAs serving millions of school-age children and their families. As a treasurer for one of these organizations, it’s your responsibility to make sure your PTA can successfully raise money to enhance and improve the educational experience of the students who depend on your work—but Texas has specific rules and requirements you’ll need to follow in order to keep these efforts compliant and legal.
As a platform dedicated to saving time for PTA members, FutureFund has collected a wealth of knowledge that can help you perform your duties as a PTA treasurer in Texas more effectively. Here are 8 essential things you need to know, courtesy of our team.
#1: Quick Facts About Texas PTA Treasurer Training
The Texas PTA provides orientation materials for new treasurers and other key members. Topics include:
- An overview of what you should do to get started as a new treasurer.
- A list of your duties and responsibilities at a glance.
- A list of additional resources (including sample forms and donation receipts).
Making sure you’re up-to-date with these materials is essential for staying compliant and efficient in your role. We’ve listed more in-depth materials later in this article that you can dive into once you become comfortable with these.
#2: Sales Tax Exemptions in Texas
PTAs in Texas can benefit from sales tax exemptions on eligible purchases. Here’s an overview of what you need to know:
- Texas PTAs are typically exempt from paying state sales tax on purchases that are used to present programs or carry out the organization’s mandate (so if your PTA is buying something that can be shown to support your students or school community, you can probably claim it as tax-exempt).
- To claim this exemption, provide each vendor with a signed exemption certificate when you make your purchase from them.
- Sales of items for PTA fundraisers are also usually tax-free. Tax-free items include food sales at fundraising events, admission tickets for events, student directories, yearbooks, cookbooks, and other materials published by your PTA. However, PTAs have a maximum of 24 days per year for these tax-free sales, and other restrictions may apply—for example, you must collect sales tax on food items when selling them in direct competition with a retailer that is obligated to collect sales tax.
Understanding these nuances can help your PTA save money when fundraising and ensure tax compliance.
#3: PTA Financial Guidelines for the Lone Star State
There are several financial guidelines specific to Texas PTAs:
- Keep funds in a federally insured bank or savings institution.
- All PTA funds should be deposited within five days of receipt.
- Checks must be signed by two officers, typically the treasurer and the president.
Follow the Texas PTA’s Financial Reconciliation process at the end of each fiscal year or whenever there’s a change in treasurer. For help, try using their Financial Reconciliation Checklist and Report.
#4: Texas PTA Financial Reporting Requirements
In Texas, each PTA treasurer is required to prepare and present detailed financial reports at the close of each fiscal year. You may also need to deliver financial reports at general membership meetings, executive board meetings, and other instances when the executive board or members request it.
It’s essential to note that reports must be provided at every meeting and cover all accounts, not just the primary account. The process for each report involves:
- Documenting all income and expenses.
- Categorizing expenses by budgeted line item.
- Preparing a monthly report showing all transactions.
- Presenting this report to your PTA board and general membership at meetings.
Preparing financial reports for your PTA can be a complicated process, but using the right tools can help. See our Ultimate PTA Treasurer Report Template to get started.
#5: The Budgeting Process for Texas PTAs
All PTAs in Texas are required to create an annual budget. As a treasurer, you’ll be in charge of preparing these documents. Here’s a general process to follow:
- Gather a budget committee, including the PTA president, treasurer, principal, and other members.
- Review past budgets and expenses, expected income, and upcoming activities.
- Draft a budget, including detailed estimates of revenues and expenditures.
- Present the draft budget to the PTA board for approval, then to the general membership for adoption.
#6: Fundraising Regulations in Texas (& Best Practices)
Fundraising is crucial to a PTA’s success, but in Texas, it’s essential to follow certain regulations:
- All fundraisers must be approved in advance by the PTA board and noted in the meeting minutes.
- Funds raised must be used for the benefit of the school’s students and must align with the PTA’s purpose.
- Be careful about fundraising via games of chance (raffles, bingo) as they could breach Texas gambling laws. Raffles are only considered legal PTA fundraising activities in Texas if they meet the following requirements:
- Every ticket must have the name and address of the PTA, the name of an officer, the ticket price, and a description of each prize valued at $10 or more printed on it.
- No prize may be valued over $50,000 USD.
- PTAs cannot hold raffles simultaneously and may only hold two per year.
- Ticket sales cannot be advertised statewide or via paid advertisements.
- No cash raffle prizes are allowed.
- PTAs must have all prizes in their possession or post a bond with the county clerk for their entire value.
- Only PTA members or their authorized representatives can sell raffle tickets.
- PTAs must complete a W2-G form to submit to the IRS for prizes worth over $600.
- Prize winners must complete a W-9 form or the PTA must collect backup withholding at a 31% rate.
- PTAs do not have to collect tax on prizes worth less than $5,000 when a W-9 has been completed by the winner.
- No one is allowed to receive compensation for organizing PTA raffles or selling raffle tickets. This includes direct and indirect compensation.
#7: Texas-Specific Resources for PTA Treasurers
Take advantage of resources designed for Texas PTA treasurers:
- The Texas PTA Treasurer’s Resource Guide
- Texas PTA e-learning courses
- The Texas PTA Money Matters newsletters for financial tips
These materials can help you dive deeper into the specific requirements of your position once you’ve familiarized yourself with the basics.
#8: Extra Tools to Help You Perform Your PTA Treasurer Duties in Texas
In addition to the resources presented above, FutureFund offers specific tools to streamline your duties. These include:
- Ecommerce tools to help your PTA raise money faster and more efficiently.
- Automated financial reports for accurate, on-time reporting.
- Donation receipts automatically generated for each donor
- Ready-made website donation campaigns to broaden your organization’s fundraising efforts.
- Data collection tools for analyzing donation trends and donor behaviors.
Armed with these tools and the knowledge provided above, you’ll be well-equipped to perform your duties as a PTA treasurer in Texas effectively. Book a demo here and find out how to fast-track your tasks as treasurer for your organization.