ANSWER: To find out if it is a PTA sponsored event, see AIM insurance requirements below. If you have another insurance, I would check with their policy, but these are good guidelines to follow regardless.
AIM insurance requirements of a PTA sponsored event:
1. The event must be voted on by the PTA
2. The event must be approved by the PTA
3. The event must be scheduled by the PTA
4. The event must be planned by the PTA
5. The majority of the manpower must be provided by PTA members
6. Also – money must be handled by PTA members and deposited into PTA account
Be careful of “lending” the PTA name and tax-exempt status to an activity that is not a PTA activity. Sometimes the PTA is asked to administer funds in order to circumvent the rules – to do so jeopardizes the PTA’s tax-exempt status. For example, sometimes PTA will be asked to “sponsor” an activity or event being organized by someone else, such as staff or a smaller group of members. The PTA should decline this – in effect they are being asked to “lend” their tax exempt status, which is contrary to federal law. If it is not a PTA activity the PTA should not collect the money, it should not go into the PTA bank account.
If it changes and it becomes a PTA activity then the above information would need to be followed. If they decide to move forward we often suggest that a PTA take an administrative fee for managing the program instead of passing through 100% of the funds.