Summary of Budget Approval by PTSA Members at the Winter General Membership Meeting (2/27/26)

PTSA Budget Update and Mid-Year Revision Overview

On July 1, 2025, the newly elected PTSA Board began its 2025–2026 term with a starting balance of $67,865.28 in the PTSA checking account. This amount reflected funds remaining after the 2024–2025 board concluded its term on June 30, 2025.

Using this starting balance, the Board developed an annual budget. We conservatively projected $28,309.72 in additional income through fundraising and other sources. Based on a total anticipated income of $96,175.00 ($67,865.28 + $28,309.72 = $96,175.00), we proposed expenditures of $96,070.94. This budget was presented to the membership at the Fall General Membership Meeting (GMM) on September 26, 2025, and was approved by a vote of the membership.

Mid-Year Financial Update

On February 16, 2026, our mid-year financial analysis showed that the PTSA had raised $76,572.32 - exceeding our original fundraising projection by $48,262.60 ($76,572.32 - $28,309.72 = $48,262.60). This additional income came from a combination of fundraising efforts, corporate matching donations, clothing sales, membership fees, and other contributions.

Nonprofit Considerations

As a 501(c)(3) nonprofit organization, the PTSA is expected to use funds in alignment with its mission to support students and the school community. While nonprofits may carry reasonable reserves, best practice guidelines recommend maintaining approximately 3–12 months of operating expenses.

Based on our Treasurer’s analysis, our annual operating expense is just under $4,000.  We already maintain sufficient reserves, including more than $15,000 in savings. Given this, it is appropriate - and consistent with our mission - to direct a significant portion of funds raised this year back into programs and resources that benefit current students.

This approach also aligns with community expectations. For example, families of graduating 5th grade students reasonably expect that their contributions will support their children during their time at Alcott.

Budget Revision Process

In light of the additional funds raised, the Board proposed a revised budget to incorporate a substantial portion of the $48,262.60 surplus into the 2025–2026 school year.

This revised budget was developed after gathering input from school leadership, teachers, and families. At the Winter GMM on February 27, 2026, the Board presented:

• A detailed explanation of how the surplus was generated
• Proposed allocations and their intended impact
• Rationale for funding decisions

Because the PTSA has over 300 members, budget approval is conducted as a full vote rather than line-by-line revisions.

Click here to see the power point slides, summary of meeting minutes, and Q&A from the Winter GMM (2/27/26)

Membership Vote and Transparency

The Winter GMM was the largest standalone membership meeting in the past three years, with 29 participants. After the revised budget was presented to the members, the revised budget was decisively approved by 60% of voting members.

Voting was conducted via chat during the virtual meeting, allowing all participants to view responses in real time, thereby highlighting transparency. This method is consistent with standard practices used in school, district, state (Washington PTA), and national PTA meetings, ensuring transparency and accessibility.

Frequently Asked Questions (FAQ)

1. Are nonprofits really not allowed to “hoard” money?
Nonprofits can maintain reserves, but they are expected to use funds to further their mission rather than accumulate excessive unused balances. Best practice guidance (including PTA guidelines) recommends keeping about 3–12 months of operating expenses in reserve. Beyond that, funds should generally be used to benefit the community the organization it serves.

2. Why can’t the PTSA just save this extra money for future years?
While some savings are appropriate, holding large surpluses over time can conflict with nonprofit best practices and community expectations. Families who contribute financially to the PTSA - especially those whose children will soon leave the school - expect their donations to support students in the year they make the contribution.

3. How was the extra $48,262.60 generated?
The surplus came from stronger-than-expected results across multiple areas, including fundraising events, corporate matching programs, membership dues, general donations, and spirit wear sales.

4. Who decided how the surplus would be spent?
The PTSA Board developed the proposed revisions after gathering input from school leadership, teachers, and families. However, the final decision was made by PTSA members through a vote at the Winter GMM.

5. Why wasn’t the budget voted on line by line?
With over 300 members, it is not practical to revise and vote on each individual budget item with input from 300+ members. Standard PTSA practice is to present a proposed budget and allow members to vote to approve or not approve it as a whole.

6. Was the voting process fair and transparent?
Yes. Voting was conducted live via chat during the meeting, and all participants could see responses in real time, highlighting transparency. This method is widely used in virtual membership meetings at the school, district, state, and national PTA levels.