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”.

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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:

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Now add a category for the portion of dues your organization will keep.

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

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When you send your payment for state & national dues, the withdrawal will be applied to these categories as well. This will net the State Dues and National Dues categories to $0.00.

Some groups combine state & national dues in one category.

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Note: If you are required to submit a 990EZ to the IRS, you can adjust these pass-through funds out of your income and expense totals when filing.

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