What can PTA, PTO and booster club money be used for?
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Short answer: PTA, PTO and booster club money can be spent on what's in the approved budget or what members approved in the minutes, and nothing else. Spending that isn't in the budget needs a vote, before the money goes out whenever you can. Money given for a specific purpose can only be spent on that purpose.
| Check | Where to find the answer |
|---|---|
| Is it in the budget, or approved in the minutes? | The approved budget and the minutes |
| Is the money restricted to another purpose? | Your treasurer report: restricted money is listed separately |
| Who has to approve it, and up to what amount? | Your bylaws and standing rules |
| Is someone other than the person being paid approving it? | The signed payment request and the two check signatures |
PTA spending rules
The minutes are your proof that spending was approved. A few rules cover most cases:
- Unbudgeted spending needs a vote. Your bylaws say who votes. In a PTA it's usually the members, not just the board.
- Budgeted isn't always approved to pay. In some state PTAs, California's for one, each bill is read out at a meeting (amount, payee, purpose) and approved, or ratified if it was already paid.
- Changing the budget is a vote too, and it comes before the money is spent. Utah PTA, for example, asks for two-thirds for changes of 10% or more, or a majority if members were told in advance.
- Summer bills can be approved ahead of time at the last meeting of the year.
- Restricted money, like donations for the 5th-grade trip, stays with its purpose. In a PTA, state and National PTA dues you haven't sent yet aren't yours to spend either.
- Recurring charges need a vote that names the vendor and the amount.
Nobody pays themselves. Another officer signs any reimbursement to you, and every request comes with a receipt. Money left at year-end carries into next year; it isn't a reason to spend fast.
What the bylaws say about the treasurer
Whether you're a PTA, a school PTO or a booster club, your bylaws and standing rules are your group's rulebook. For spending, find out: how much can be spent without a vote, how the budget is approved, what you can pay before it's approved, and who can sign contracts. Then ask the principal whether your school district has its own rules for PTOs and booster clubs. They sit on top of your bylaws and are easy to miss.
If the bylaws don't answer something, note it and ask the board to propose an answer.
Can booster clubs pay coaches or give them gifts?
It depends on IRS rules for tax-exempt groups and on your school district's policies, and we won't guess at either. Before you pay or give a gift to a coach or teacher, ask your district's business office and a CPA.
Whatever they say, the usual rules still apply: the spending has to be in the budget or voted on, and recorded in the minutes. And if you pay a person for services:
- Ask for a W-9 form before you pay.
- If you paid a person or a business that isn't a corporation $2,000 or more for services during 2026, you file Form 1099-NEC, due to them and the IRS by January 31. Payments made in 2025 used the old $600 limit.
Can booster clubs give scholarships or have individual accounts?
Again, the answer depends on IRS rules for tax-exempt groups and on your school district's policies. A CPA who works with tax-exempt groups is the right person to ask before you set either up.
What you can do today
Questions people ask
Can the board approve spending between meetings?
Only if your bylaws allow it, and usually only up to a set limit. The members then confirm it at the next meeting and it goes in the minutes.
Can I pay a bill before the budget is approved?
Check your bylaws for what you may pay before then. Some groups vote a small summer budget for this.
Do members vote to approve the treasurer’s report?
In most PTAs, no. The report is filed for the year-end financial review. Follow your bylaws.
Next step: set up the plan these rules depend on with the PTA budget template.