MEMO: Playgrounds
TO: NYS PTA Board of Managers
FROM: JoAnn Incalcatera, NYS PTA Treasurer
DATE: December 12, 2006
New York State PTA has a responsibility to ensure that our units are fully informed before making any decision. To that end, here is information we believe you need to know:
NYS PTA does not recommend PTA units become involved in the raising of funds for, or participating in any aspect of replacing or building playgrounds. As a 501 (c) (3) organization, we are chartered to advocate and educate on behalf of children. The primary focus of PTA should be on the promotion of the Purposes of PTA, and not on fundraising. Fundraising is necessary to support PTA programs and to meet the needs of the PTA budget. It is important to keep in mind our mission statement "that we will maintain our commitment and service to all children and to its diverse membership through increased parent and community awareness, advocacy, education and involvement." Basically, the only funds that should be raised by a unit are to support the primary function of advocacy and education, not to purchase things such as playgrounds. Please remember that PTA funds may not be donated to or raised for another group.
Playgrounds are expensive and the IRS not only looks at how PTAs spend their money but how they raise it. The fundraising activities must reflect our Mission and Purposes. Book Fairs are a good example; while we are raising funds we are promoting how important it is to read. The IRS will see that there is a direct connection between the fundraising act and the mission to encourage all children to read. The amount of fundraising a unit would have to do to support a playground would be extensive and very hard to justify under this requirement. The PTAs time and resources would be better spent attending school board meetings and making it their priority that the needs of all children are met. Many units have worked with their school boards and community members to achieve the goal of securing a safe playground. They did not raise the funds, purchase, or install the playground. They achieved their goal by ADVOCATING!
Another concern is the issue of liability. The greater the involvement of the PTA in raising funds and building the playground, the greater the exposure for lawsuits. The NYS PTA has experienced several claims and lawsuits; this impacts our ability to secure insurance for our all units and also raises the cost of the insurance.
We do not recommend PTAs engage in playground projects. However, if after careful consideration of all the issues the PTA decides to go ahead, the following must be adhered to. The unit must be fully informed and the membership must vote to approve this activity. This kind of project will most likely span several years so please consider that the current leadership will be committing future leadership and members. The PTA should not under any circumstances purchase or install any equipment. The "grant" process as outlined in the NYS PTA Resource Guide should be followed. This does add a layer of insulation but it does not absolve the PTA of all liability. The PTA has to be very aware of IRS regulations and make sure they are in compliance.
The question of the PTA being the recipient of a grant to pay for playgrounds and other items has also become an issue. We recommend extreme caution when it comes to applying for and accepting a grant for schools. Once the PTA has committed to the grant, they become legally responsible for the administration of the grant. There are many legal and IRS requirements, as well as record keeping details that are beyond the ability of many units. Once again, this also increases our exposure for fraud and liability and therefore impacts our ability to secure affordable insurance.
