Budgeting funds that do not belong to your local unit

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

  • Include a Heading called, “Funds Not Belonging to Local Unit”
  • Under this heading add the categories for the money you will be passing thru. Let’s use this example:

  • National Dues, State Dues, and 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 would split something like this:
  • National PTA Dues $2.25
  • State PTA Dues $5.75
  • Local PTA Dues $2

  • 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.
  • ALSO on the 990EZ they would NOT include line numbers for that State & National PTA Dues Category so it would not show up in the totals for Income and Expenses which is what you want.

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