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Parent Teacher Associations – Should You Seek Charitable Registration? – Charities & Non-Profits – Corporate/Commercial Law

When should a PTA seek charitable registration and what does
that mean?

What is a PTA?

Parent Teacher Associations (sometimes known as “Friends of
[School]”) are the liaison between a school, parents or
primary carers and pupils. They are intended to enhance the
experience of pupils and primary carers with the school and help
make the school environment a positive place to learn.

PTAs generally help to raise funds for things which aren’t
covered by the school budget. This can include new outdoor play
equipment, PA systems for the hall, or extras for breakfast club.
They can also provide support in other ways, such as organising
uniform swaps or discreetly helping to support disadvantaged
children who may not otherwise be able to take part in some school
activities.

The reach of a PTA for a school in a multi academy trust can
vary. It may be limited to one school, include a group of local
schools or cover the whole of the multi academy trust.

Should our PTA be registered with the Charity Commission?

Many PTAs operate for solely charitable purposes (usually being
the advancement of education), even if they do not realise it.
Organisations operating for solely charitable purposes and with
income of over £5,000 per year are obliged to register with
the Charity Commission. (Organisations with income under
£5,000 can choose to register, but are not obliged to.)

They may also wish to register as a charity with HMRC to benefit
from charitable tax reliefs and/or register for Gift Aid.

What does it mean to be a registered charity?

The trustees of a charity have a duty to ensure that their
charity is managed responsibly, with reasonable care and skill, and
in line with their trustees’ duties. They have a responsibility
to ensure the charitable activities they are involved in are
properly planned and executed, that the charity is accountable to
its beneficiaries and stakeholders and that they are always acting
in the best interests of the charity. They also have a duty to
comply with the governing document of the charity and any
applicable law and regulation.

What does that mean for our fundraising?

PTAs which are registered charities have to comply with Charity
Commission guidance and regulations, although it is good practice
even if a PTA is not required to register. The Fundraising
Regulator also has a Code of Fundraising Practice (currently being
updated – see here) which is a useful tool for those
planning fundraising activities. Registration with the Fundraising
Regulator isn’t compulsory but is certainly good practice.

Depending on the type of fundraising being undertaken, there are
various areas for consideration. Some of those are set out briefly
below:

  • Restricted and unrestricted funds – where funds are being
    raised for an item (such as new outdoor equipment), it can create a
    restricted fund, meaning that the money raised can only be spent on
    the particular item – and nothing else.

  • Appeals – the wording of particular appeals can be
    tweaked to ensure that restricted funds (see above) are not
    inadvertently created and money raised can be used wherever it is
    most needed to support the pupils and school.

  • Lotteries and prize draws – particular information has to
    be provided about the lottery or draw, and requirements such as
    contacting all winners within seven days of a draw complied
    with.

  • Events – event fundraising may require permission to use
    the school site, particularly if out of hours, and making sure an
    appropriate risk assessment is carried out.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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