Parent Teacher Association is an acronym for Parent Teacher Association. The PTA is the nation’s oldest and largest kid advocacy organization. More than 4 million parents, teachers, grandparents, caregivers, foster parents, and other caring individuals make up the PTA today, all of whom are dedicated to promoting the education, health, and safety of all children. A Unit is a local parent organization that is technically associated with its state’s PTA organization and the National PTA.
PTA members must pay dues to their State PTA and the National PTA, and they are not a stand-alone parent organization.
Parent Teacher Organization (PTO) is an acronym for Parent Teacher Organization. A PTO is a non-PTA independent parent organization that is not affiliated with any national organization that oversees or requires specific bylaws or dues to be followed. There is no recognized umbrella organization for PTOs, nor is there a “National PTO” equivalent to National PTA.
PTO members are members of an independent parent organization that is not affiliated with a national organization, are not governed by specific bylaws, and are not required to pay dues.
PTO/School Group Insurance is designed to protect members, directors, officers, and volunteers of your PTO/School Group from claims or lawsuits that hold them personally liable for accidents that occur at a PTO/School Group-sponsored event. With RVNA’s services, you and your PTO/School Group can better protect yourself and your PTO/School Group from financial loss and/or lawsuits.
Call 1-800-364-2433 Monday through Friday from 5:30 a.m. to 5:00 p.m. PST to talk with a friendly customer service person. You can also go to our Help Center for more information.
What does PTO mean for insurance?
Practices in dentistry, optometry, veterinary medicine, and medicine Employees say it’s one of the three most wanted benefits, along with health insurance and retirement programs. Your dental, optometry, veterinary, or medical firm will attract top employees with competitive paid time off (PTO) benefit programs.
Does PTO need insurance?
Most PTO volunteers consider a carnival as a festive way to increase school spirit, collect money, and, of course, have a little fun, with three-legged races, popcorn machines, and other activities. However, from the perspective of insurance providers, the same carnival appears to be more akin to a small shop of horrors.
What about the three-legged race? There’s a potential that someone will get wounded, possibly seriously. What about the popcorn machine? A potential fire hazard.
The experts see difficulties in anything from large-scale projects like donating playgrounds to seemingly benign ones like enabling pupils to buy affordable gifts at a holiday store. Someone could trip and tumble off one of the swings, or choke on one of the gifts. They aren’t being alarmist or dramatic. Those things have happened, but infrequently.
PTOs and PTAs should be insured not only to protect themselves from injuries and losses at events they sponsor, but also from embezzlers. Even if the parent organization is cash-strapped, a lawsuit may choose to name officers who appear to have more personal assets.
Many volunteers appear to be burying their heads in the sand, reasoning, “Well, I’m a volunteer, so I can’t be sued” or “We’re just a simple parent group.” “Who would swindle money from us?” The problem is that anyone can be sued, and parent organizations all over the country have been victims of theft more times than we can count. Attorneys are required in lawsuits. It might be quite difficult to replenish money that have gone missing.
While many parent group leaders assume (or are told by a school administration) that their group is protected by a school or district insurance policy, experts strongly advise that parent group leaders double-check this assumption before taking a significant risk.
Do We Really Need Insurance?
Insurance is “a requirement,” according to Melissa Repetski, departing president of the Boyette Springs Elementary School PTA in Riverview, Florida.
She says, “I’d be afraid to hold an activity without it.” The Boyette Springs PTA has a liability policy that costs around $300 a year and has bonded its president and treasurer for an additional $100 a year since the state PTA urges local groups to take out insurance. “With all the embezzlement cases going around, I understand the point,” adds Repetski.
The truth is that anyone, at any time, can sue anyone else. While not all lawsuits are valid, in this more litigious era, a small investment in insurance can provide piece of mind and, in the worst-case scenario, protection.
The laws differ from state to state since insurance is governed by states rather than the federal government. In some areas, for example, school districts are prohibited from funding PTO events under their insurance policies. In other states, school districts are in charge of making the decision.
Asking the school district’s business manager if your parent organization is protected under the school’s policy is the easiest method to find out. If your group is covered by a school policy, inquire about what that policy coversparent group meetings, family events such as carnivals, and so onas well as whether the regulation applies to activities on or off school grounds.
However, obtaining official confirmation of coverage from the district’s insurer is your best bet. What will happen if you can’t get proof of coverage during the good times, when an accident occurs?
Which Policies Should We Purchase?
This coverage should cover third-party bodily injury and property damage claims that arise during activities sponsored by your parent group, both on and off school grounds. The term “third party” refers to someone who is not a participant, such as someone who is walking by a magic show and is injured by one of the tricks.
If you’re planning a large or unusual event, such as a festival or a fun run, ensure sure your general liability policy covers all activities at the event as well as all volunteers. Check that your school’s PTO’s liability policy covers any incidents or claims linked to all of these events, for example, if your school’s PTO is preparing a fundraising festival that includes a ring throw, fortune-telling, magic performances, and an auction.
Excess accident medical insurance gives participants at PTO-sponsored events with additional medical coverage. This policy will cover the costs that exceed the injured person’s main insurance coverage if an injury at one of your events results in major medical costs (such as surgery or a hospital stay). If someone is wounded, this helps to avoid lawsuits that would be filed to recover reimbursement for out-of-pocket medical bills. It is distinct from general liability insurance, albeit both must be obtained simultaneously.
Directors and officers liability is a separate policy that is actually an investment in your organization’s executives. These leaders, who devote so much of their time to volunteering, are also putting themselves in jeopardy. D&O insurance is designed to defend them in the event that their decisions as leaders are called into question in a lawsuit (“Why did you choose that vendor?”). It covers claims aimed at an organization’s individual officers/board members coming from decisions taken on your group’s behalf. Make that the definition of “insureds” in the policy includes all of the different sorts of volunteer leaders your organization employs.
For example, suppose your PTO chooses to partner with a specific vendor who later goes out of business. Someone accuses the officers of knowing about a problem at the company and decides to sue. (For a D&O claim to be filed, there does not have to be any personal harm or property loss.)
Property insurance protects the parent organization’s property, such as a cotton candy machine, fundraising products, and computers, from theft or natural disasters. Your very affordable property coverage could come in help if that copier you bought for your PTO is wrecked in a flood or that $20,000 consignment of candy melts is ruined due to a refrigerator power outage. Find out what the requirements are for the property to be coveredfor example, if it must be kept in a secure location on school grounds.
Other Common Requirements
For coverage to be effective, make sure you follow all financial controls and procedures needed by the insurance provider. An annual audit, for example, might be required by a policy (financial review). It may also be necessary for payments to be authorized by someone other than the check-signer before they are made. Money theft from PTOs and other organizations is more widespread than you might imagine, despite the fact that it is difficult to believe. Over the course of several years, one organization’s trusted volunteer treasurer embezzled $100,000.
When you have a claim or a possible claim, most policies require you to inform the insurance provider right away. Though the company does not get prompt notice, the claim may be denied, even if it would otherwise be covered.
Furthermore, some insurance plans demand that additional protections against losses, damages, or liabilities be incorporated in contracts that your organization enters into with third parties. For example, the insurance carrier may require that vendors providing particular equipment, such as moon bounces or skating rinks, identify the PTO as a “extra insured” and that the vendors be liable for any damage or accidents caused directly by the usage of the equipment, rather than the PTO. If these conditions (also known as indemnity terms) aren’t included in contracts, the insurer may refuse to cover associated claims.
The PTO Today Advantage
It’s a worthwhile investment and an interesting program. You’re serious about your parent group job if you insure your group, your volunteers, and your leaders. Your volunteersparticularly your leadersput their hearts and souls into your PTO, and they shouldn’t be held personally liable in the event of a disaster. And a brief examination of recent PTO news demonstrates that no organization is immune to the threat of theft or misappropriation.
Being a member of a PTO, PTA, or any other type of community organization does not protect you from a lawsuit or a loss. Insurance coverage, especially when purchased in bulk, can make all the difference.
What does PTA insurance cover?
The PTA insurance coverage covers all members of the PTA in the event that they are held legally accountable for physical injury or property damage caused by a covered PTA event. This isn’t a medical insurance policy; it’s a liability insurance policy.
If someone is hurt, but it isn’t because of a PTA’s negligence, the person should seek medical help through his or her own insurance. The policy is intended to cover all PTA events that are permitted. Booster clubs, parent clubs, and non-PTA events are not covered under our PTA insurance. It is vital that before any PTA events are planned, the
How much auto insurance coverage do I need in California?
Drivers in California must have at least the these auto insurance coverages:
- Liability coverage for bodily harm is a minimum of $15,000 per person and $30,000 per accident.
- Uninsured motorist bodily injury coverage1 is a minimum of $15,000 per person and $30,000 per accident.
While these are the bare minimums required by California, everyone’s insurance needs are different. To get a personalized recommendation, use our Coverage Calculator.
Does PPO have copay?
PPO plans are more convenient because they don’t require a PCP, but they can also be more expensive. When you enroll in a copay PPO plan, you will be required to pay a copay (a set cash amount) each time you visit a provider. In general, a copay PPO plan has cheaper premiums than a non-copay PPO plan.
What is PPO health insurance?
A health plan in which medical providers, such as hospitals and doctors, enter into contracts to form a network of participating providers. If you use providers who are part of the plan’s network, you will pay less.
What are PTO bylaws?
The basic regulations that govern how your group is structured and administered are called bylaws. Every parent organization should have bylaws, and each new leader should read them. The composition of the executive board, how officers are elected, and membership criteria are all covered in the bylaws.
Reading the bylaws of other PTOs is the greatest approach to get started crafting your own PTO’s bylaws. There are no “official” PTO bylaws that you must follow because each PTO is a separate organization. Basic bylaws, on the other hand, should be consistent from one PTO to the next. Delegate the development of your bylaws to two or three charter members of your PTO. In the bylaws/policies section of the File Exchange, you’ll discover sample PTO bylaws, as well as an annotated set of PTO bylaws that describes each part.
Format
Before you focus on the content of the bylaws, take a moment to analyze the document’s format and layout. It is critical that your rules be written in an editable electronic format in today’s environment of electronic communication and record-keeping. That implies that even if you perform all of your early work on paper, your final version must be typed in a program like Microsoft Word. With electronic bylaws, you may send the document to your officers and members as needed, make changes over time, and, most importantly, maintain several copies so that future officers don’t have to dig through binders and file drawers to find the lone paper copy of your bylaws.
Layout
Bylaws are typically written in outline format, with major section headings referred to as “articles” and subordinate paragraphs referred to as “sections.” The bylaws are organized and easy to reference with this arrangement.
Important Content Areas
You will cover all of the main areas for a normal PTO’s bylaws if you follow the sample bylaws mentioned above. The formal name of your organization, its purpose, membership requirements, officer requirements, voting procedures, including the definition of quorum, meetings, financial policies, amendment procedure, dissolution, and parliamentary authority (the reference you’ll use to resolve procedure questions, usually Robert’s Rules of Order). If your PTO decides to apply to the IRS for tax-exempt status (501(c)(3) recognition), the IRS demands a dissolution clause in your bylaws, so don’t leave it out.
FAQsWriting Bylaws
PTO bylaws don’t have to be difficult. They should be written in straightforward English so that any member can comprehend them. If your PTO has an attorney on staff who would be willing to examine your bylaws for free, you should take advantage of her knowledge. However, keep in mind that nonprofit law is a specialized field, and not all attorneys will be familiar with the intricacies of forming a nonprofit. It’s acceptable to have a volunteer assist your PTO, but there’s no need to spend a fee to have a professional draft basic PTO rules. You can do it on your own, just like tens of thousands of other parent group leaders have.
Gather your leadership team to review the proposed bylaws once your bylaws subcommittee has completed its draft. If your PTO is still in the early stages of development, you can adopt bylaws with a two-thirds affirmative vote of your charter members. If your PTO has been around for a long and has a bigger membership, you’ll need to present the bylaws to the full membership for discussion and approval by a two-thirds vote. Once they’ve been authorized, send a copy to all of your PTO officers, major committee chairpersons, and the principle, as well as keeping a copy in your PTO’s permanent files.
Your PTO’s bylaws are the guiding concepts and parameters. Keep a paper hard copy and an electronic version of the guide in your files so that you can guide the group whenever appropriate. To keep your group focused on its objective, to clear up confusion, and to handle arguments, refer to them frequently. Bylaws are the best method to keep people and emotion out of PTO concerns since they are impartial and lifeless.
Your bylaws will almost certainly need to be revised over time to keep up with the expansion of your organization. Don’t be scared to make changes to them according to the methods outlined in the paper. In fact, reviewing your bylaws, line by line, every three years is a sound business practice.
FAQsPolicies and Standing Rules
Policies, often known as standing rules, are written documents that assist define your PTO’s day-to-day operations. Bylaws, in general, provide the greatest range of requirements for your organization, and they are pretty consistent from one organization to the next. Policies, on the other hand, are more particular to your PTO and are more thorough. For example, your bylaws may stipulate that your organization hold a general meeting at least three times each year, and your policies may stipulate that general meetings take place on the first Thursday of each month at 7 p.m. Policies, like bylaws, are used to address concerns and resolve disagreements consistently.
By a simple majority vote, policies can be adopted (50 percent plus one of those voting). According to Robert’s Rules of Order, modifying a policy needs a simple majority vote if notice of the change has been given in advance. A two-thirds majority is required if no warning has been given and the modification is to be effected on the spot.
In practice, the executive board is in charge of policies. Members should be informed of the group’s policies, though. In each committee’s processes binder, it’s a good idea to include both your PTO’s bylaws and regulations.
Without complicating your bylaws, policies can cover whatever you want to formalize. Your policies should also provide detailed financial controls for your PTO. These rules should be clearly understood by anyone handling money on behalf of the PTO.
Committee chairperson qualifications and expectations. “The vice president shall chair the fundraising committee and organize fundraising events twice a year, in the fall and spring,” for example.
Major projects, such as the yearly fun run or auction gala, have committee-specific restrictions.
The name of the PTO’s registered agent, the address of the registered office, and the processes for completing the annual renewal process for the incorporated PTO.
What do PTO members do?
What precisely does the PTO do? Words like “organize,” “support,” “assist,” and “volunteer” may appear in a dictionary search for “PTO.” Special events organized by the PTO include the talent show, Jersey Mikes fundraiser, teacher appreciation, yearbook sales, spirit apparel, and the school store, to name a few.
Does a PTO have to file taxes?
Is your organization a 501(c)(3)? You’re not alone if you’ve heard that term and have no idea what it means. “501(c)(3)” is IRS jargon for “tax-exempt.” It refers to a part of the federal tax code, such as a section, subsection, or paragraph. Many types of organizations are exempt from paying certain federal taxes under Section 501(c)(3), including those created for charitable or educational purposes, such as most PTOs.
However, just because your organization operates like a nonprofit doesn’t guarantee it’s tax-exempt. A lengthy application process is required to get tax-exempt status under section 501(c)(3). Should you submit an application? The majority of the time, the answer is yes.
Why Apply?
Tax-exemption. By registering as a 501(c)(3) organization, your organization becomes tax-exempt for any activities related to its objective. Federally registered 501(c)(3) organizations are also free from state sales tax in many states. For more information, contact your state’s department of commerce.
Credibility. A 501(c)(3) organization communicates to the general public that it takes itself and its job seriously. The IRS requires that it have bylaws, policies, a mission, programs, records, and funding. While there’s no assurance that a registered PTO will be well-managed in the future, the status does provide a foundation of professionalism and respectability that can attract new members and donors.
Donations. In order for a supporter to receive a tax deduction for a donation to your PTO, your organization must be a federally recognized 501(c)(3) nonprofit. This is especially vital if you’re collecting money for an auction or a carnival. Many vendors will only donate if your PTO is a 501(c)(3) organization.
Grants. Most grant programs require applicants to be federally registered as 501(c)(3) organizations, which includes PTOs.
Responsibilities
The advantages of 501(c)(3) status are accompanied by duties. Your PTO is required to file an annual information return, comparable to a tax return, every year. The IRS Form 990 (or 990-EZ) inquires about the sources of your organization’s income as well as the sorts of costs incurred the previous year. Because the majority of the inquiries are financial in nature, your treasurer should keep meticulous records throughout the year. Starting with the 2010 tax year, organizations with gross receipts of $50,000 or less may instead file Form 990-N, the streamlined “e-postcard.”
The IRS provides you several months after the fiscal year ends to complete Form 990, but you must submit it by the deadline. Fines could be imposed if the form is not filed. A 501(c)(3) PTO must also transmit the names of newly elected officers and significant bylaws amendments to the IRS so that federal records are kept up to date.
Not every parent organization has the infrastructure or organizational maturity to meet these annual responsibilities. When considering 501(c)(3) status, think about your organization’s long-term stability. If you proceed with the application, make sure that your officers, particularly your treasurer, preserve accurate records now and in the future. Pass on your knowledge to the leaders of the following year. Your PTO gains a new degree of professionalism if it becomes a 501(c)(3) organization, which must be maintained year after year.
How To Apply
A federal identification number is required before your PTO may file for 501(c)(3) status. The employer identification number, or EIN, is the name given to this number. It works in the same way as a social security number for your company. An EIN is free, and the application, known as form SS-4, can be done over the phone with the IRS. Even if your PTO never applies for 501(c)(3) status, you’ll need your own EIN to create a bank account in the name of the organization.
The next step is to have your PTO registered in your state. Although incorporation is not essential, it does provide executives with some liability protection. The incorporation will almost certainly need to be renewed every year. The rules and fees differ from one state to the next. Details are usually available from the department of commerce.
For organizations with annual sales of less than $50,000, the IRS charges a one-time application cost of $275. The IRS typically takes six to eight weeks to process an application. When your application is approved, the IRS sends you a “determination letter,” which is official proof of your 501(c)(3) status. It doesn’t have a fancy seal or gold ribbon, and it’s not suitable for framing. However, you should keep the original determination letter safe and distribute multiple copies for safekeeping.
Myths About 501(c)(3)
There are a few myths that keep organizations from seeking for tax-exempt status.
Because our PTO is affiliated with our public school, it is immediately tax-exempt. This is only true if your PTO functions as a committee or group under the direct control of the school. Your PTO is a committee of the school if the money in your group’s account is held in a bank account controlled by the school and uses the school’s EIN. In this situation, you could argue that the school’s tax-exempt status covers your PTO. However, such a close relationship jeopardizes the autonomy that many PTOs seek.
If we want to keep our 501(c)(3) status, we must spend down our account to zero every year. This is not the case. The IRS permits 501(c)(3) organizations to transfer as much money as their members deem appropriate. You can benefit from any of your activities if you work hard enough. A “nonprofit” organization cannot have stockholders who profit from the business, as a for-profit organization can. It doesn’t stop the organization from making money to fund its mission.
Our PTO is far too small to apply for 501(c)(3) certification. Any PTO that raises at least $5,000 in gross income each year is required by the IRS to file for 501(c)(3) status. It’s important to note that the test is based on gross income rather than net profit. You should strongly consider submitting if your PTO surpasses $5,000. Otherwise, the IRS considers your PTO to be a small business, and your group’s income may be subject to federal taxation.
We are tax-exempt because we have our own tax ID number. Obtaining an EIN is only the first step toward establishing a legally recognized tax-exempt organization. If you can’t locate confirmation that the PTO ever submitted form 1023, the tax-exempt status application, and you’ve never heard of form 990, your organization is most likely not 501(c)(3). To find out for sure, call the IRS at 800-829-3676.
Can my son drive my car if he is not insured?
Driving without auto insurance is unlawful in California. At least $15,000 in bodily injury insurance per person, $30,000 in bodily injury insurance per accident, and $5,000 in property damage insurance are required of all licensed drivers. The 15/30/5 rule is what it’s called.
It’s important to remember that insurance follows the vehicle, not the driver. If a buddy drives your car and has an accident, you will be responsible for paying your deductible, and your insurance premiums may increase.