Can a PTA use Venmo?
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Short answer: A PTA can use Venmo only if its state PTA allows it, and only through an account the group controls, never a volunteer's personal account. Some state PTAs, like Utah's, don't allow Venmo, Zelle or Cash App at all, while Washington State PTA allows Venmo with extra controls. For most PTAs, PTOs and booster clubs, a PayPal business account or a card processor like Square is the simpler choice.
| App | What to know |
|---|---|
| PayPal business account | Can be opened in the group’s name and EIN. Works for most groups. |
| Card processor (such as Square) | Set up for the group. Works for most groups. |
| Venmo | Business profiles attach to one person’s account. Charity profiles are only for 501(c)(3) groups. |
| Zelle | Tied to a personal phone number, so it usually can’t be handed to the next treasurer. |
Five checks before your group uses any app
- It's in the group's name and EIN.
- It was opened with a shared group email, not a personal one.
- At least two officers can log in.
- Your insurer or bond covers losses through it.
- The board approved it in the minutes.
Then ask one more question: what happens when this volunteer leaves?
Can a PTA use Zelle?
Zelle, like Venmo, is tied to a personal phone number. That makes it hard to share and almost impossible to hand over: when a treasurer leaves, the account usually has to be closed and something new set up. Utah PTA doesn't allow Zelle for PTA banking, and Virginia PTA strongly discourages it. Check your state PTA's rules first. A school PTO or booster club should check its bylaws and ask its insurer.
Booster club Venmo account
Venmo's personal accounts can't be used for business transactions under its user agreement, and its business profiles hang off one person's account. Its charity profiles need 501(c)(3) status. If your booster club uses Venmo anyway:
- Make sure at least two officers can see the account.
- Move the money into the bank often, at least monthly.
- Have someone who doesn't sign checks look over its history each month, as Washington State PTA suggests.
PTA PayPal account
A PayPal business account can be opened by the group itself, which is why it works for most groups. Open it under a shared group email, give at least two officers their own access, and get the board's approval in the minutes. Give app and card fees their own budget line, and have the board decide whether the group covers them or payers can choose to add them.
What about Form 1099-K?
Payment apps report payments on Form 1099-K once an account takes in more than $20,000 across more than 200 payments in a year, and sometimes below that. The form goes to whoever owns the account. If group money runs through a volunteer's personal app, the form goes to that volunteer, not the group. Make sure any form goes to the group's EIN.
Keeping the records clean
- Move money from each app into the bank at least monthly, and record each transfer.
- Check each app's balance and history every month, the same way you check the bank. Its payouts should show up as deposits.
- Save each app's monthly statement next to the bank statement.
- List each app as its own account line in your treasurer report.
Group money never passes through a personal account.
Questions people ask
How do I make a Venmo for a club?
Venmo business profiles require an individual’s Venmo account, so the profile is tied to one person. Check your state PTA’s rules and your bylaws first, and consider a PayPal business account or a card processor instead.
Can the new treasurer take over our Venmo?
Usually not, because it’s tied to a personal phone number. Plan to close it and set up something new.
Does a payment app need a board vote?
Yes. Approve it in the minutes, and approve any recurring charge with a vote that names the vendor and the amount.
Next step: match your bank and app statements every month with how to reconcile a PTA bank statement.