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Budgeting funds that don’t belong to your group

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Special instructions for setting up your budget if you’re a local PTA that has funds that do not belong to your local unit:

Set up a heading in your budget called “Funds Not Belonging to Local Unit”:

Under this heading add the categories for the money you will be passing thru. Let’s say you’ll be collecting & then passing on dues for national and state dues, as well as your state sales tax.

There’s no point in including budgeted amounts since this money simply gets passed thru your account. So leave those at $0.

It should look like this:

Using this same example, now add a category for the portion of dues you would keep:

When you receive money for dues in this example, you need to split each deposit. So if a membership is $10 and you get to keep $2 then the deposit might look something like this:

When you send your payment to the State it comes out of both State & National PTA Dues and things net out to $0.00. You can see at a glance how much you owe and the Heading is helpful because it separates it out. Some groups combine State & National Dues in one category.

Note: If you are required to submit a 990EZ to the IRS, you would NOT include line numbers for that State & National PTA Dues categories so it would not show up in the totals for Income and Expenses which is what you want.

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