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.