PTA vs PTO vs booster club: what's the difference?

What is a booster club?

A booster club is a parent group that raises money for one part of school life, usually a team, sport or activity such as band. Like a school PTO, it isn't part of a national organization. It sets its own rules in its bylaws, files its own IRS return and buys its own insurance.

Booster clubs often have one extra layer: rules from the school district. Many districts publish guidelines for parent groups. The Solanco School District guidelines, for example, ask for a yearly list of officers and signers, a treasurer's report and June bank match by September 1, three signers with any two signing, and an independent annual review. Ask your principal whether your district has something similar.

Booster club vs PTO: what's different for the treasurer?

Less than you'd think. Both are independent, both follow their own bylaws, and both need an EIN, a bank account in the group's name and a yearly IRS return. The main difference is scope. A PTO, or parent-teacher organization, supports the whole school. A booster club supports one program, so its money tends to follow a season: fees, concessions and travel come in waves.

Questions like paying coaches or giving scholarships depend on IRS rules and district policies. See what PTA, PTO and booster club money can be used for.

PTA vs PTO at a school

A PTA unit belongs to its state PTA, which belongs to National PTA. That brings rules and support:

• Your state PTA's treasurer materials come first, then your bylaws. Where they differ from general advice, follow them.
• Part of each member's dues goes to the state and national PTA. Your state PTA sets when, often monthly.
• Your state PTA may set deadlines earlier than the IRS. Texas PTA, for example, wants the IRS return within 60 days of year-end.
• In most PTAs, the members approve the budget and the standing rules, not just the board.

A PTO has none of these ties. Its bylaws decide who votes on what, and a CPA is its best outside check. Find your state PTA in National PTA's list of state offices.

Is a PTO a nonprofit organization?

A PTO is a nonprofit group in the everyday sense, but being tax-exempt with the IRS is a separate question. Having an EIN doesn't make a group exempt. Very small groups (gross receipts normally $5,000 a year or less) can be exempt without applying; larger ones need IRS approval, usually under 501(c)(3). You can look your group up by EIN in the IRS Tax Exempt Organization Search. More on this in is a PTO or booster club tax-exempt?

What's the same for all three

Whatever your group calls itself, the habits that protect the money don't change:

• Two signatures on every check, from people who aren't related.
• Two people count every cash box.
• A monthly bank match, looked over by someone who doesn't sign checks.
• A yearly financial review by members who don't handle the money.
• An IRS return every year, usually the 990-N for groups that normally take in $50,000 or less.

Questions people ask

Is a PTA the same as a PTO?

No. People often use the names loosely, but a PTA belongs to its state PTA and National PTA and follows their rules. A PTO is independent. Check your bylaws to see which you are.

Does a booster club need its own bank account?

Yes. Group money belongs in an account in the group’s name, using the group’s EIN, never a volunteer’s personal account or Social Security number. See how to open a bank account for a PTO or booster club.

Who checks a PTO or booster club’s books?

Members who don’t handle the money do a yearly financial review. A PTA can ask its state PTA for help with problems; a PTO or booster club can ask an accountant.

Next: read the full list of PTA treasurer duties and responsibilities, which apply to PTOs and booster clubs too.