When is an audit required?
An audit is required at the end of each fiscal year or any time authorized check signers change.

When do I have to file an IRS Form 990(EZ)?
If your annual gross receipts average $25,000 or more (3 year average), you are required to file a Form 990(EZ) within 4-1/2 months after the end of your fiscal year. For more information, Form 990 and related instructions may be downloaded from the IRS website at http://www.irs.gov.

Can we have a fundraiser to raise money for a student who needs an operation?
No. The PTA may not raise funds for the benefit of a single individual, no matter how worthy the cause.

How much money can we carry over to next year?
There is no established maximum amount. It will vary, from PTA to PTA based upon when each holds its fundraisers. If you have no fundraiser until spring, you will need to carry over more than if your major fundraisers are in the early fall. However, a PTA should not raise more funds than is necessary to carry out its tax-exempt function.

Our local unit is applying for a foundation grant and we need a letter certifying that we are a charitable, tax-exempt organization. Can the State office issue such a letter?
Yes, on request, we will issue a letter certifying that you are a charitable, tax-exempt organization under our group exemption. Letters will not be issued to units that are not in good standing.

Can a PTA write a letter to parents and families requesting donations in lieu of a fundraiser?
Yes. The request must be completely voluntary, however. Be sure to explain what the funds will be used for and ensure that all monies are deposited for that specific activity or program.

We are having a fun fair at our school in a couple of months and want to know what activities are covered under our liability insurance policy.
Our insurance agent publishes a “Loss Control Guide” which outlines activities that may or may not be covered under the policy. We encourage you to contact our agent, Kerri McDonald at (800) 567-2685 to obtain a copy of the guide or you may download it from their website at http://www.rvnuccio.com.

How many fundraisers are allowed annually?
When planning the year’s activities, PTA’s should use the 3-to-1 rule. For every fundraising activity, there should be at least three non-fundraising projects aimed at helping parents or children or advocating for school improvements, etc. All funds raised must be in the context of the Mission and Purposes of PTA.

What forms of income generating activities are subject to general excise tax?
Tax Facts 99-4 issued by the State Department of Taxation provides guidance on this and many other similar topics of interest specific to Parent Groups and other school related organizations. A copy of the publication may be downloaded from their website at http://www.state.hi.us/tax/tax.html.

If the PTA wants to purchase equipment or other supplies for the school, can funds be granted directly to the school rather than having the PTA purchase it in their name?
Yes, grants are acceptable (and recommended) provided it is approved by general membership.

Have we answered your questions?
If not, please go to Contact Us to submit a request for information online or call us at:

Hawaii State PTSA
P. O. Box 22878
Honolulu, Hawaii 96823-2878
Phone (808) 593-2042
Email:  info@hawaiiptsa.org