Education - As enacted, requires a school support organization and a group or organization that collects and raises money, materials, property, or securities while representing itself to be a school support organization to annually provide a detailed report of the organization's receipts and expenditures while representing itself to be a school support organization to the department of education by July 1 each year, unless the school support organization is a booster club, parent teacher association, parent teacher organization, or parent teacher support association; requires the department to publish the reports on the department's website for at least three years from the date on which the report was submitted. - Amends TCA Title 49.

114th Regular Session (2025-2026) Introduced by Torrey Harris

Tennessee requires non-exempt school fundraising organizations to report annual finances to the state education department, with public disclosure of receipts and expenditures for accountability.

Comp. became Pub. Ch. 277

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Legislative bill overview

HB 1385 requires school support organizations in Tennessee to submit annual financial reports detailing receipts and expenditures to the state Department of Education by July 1, with exemptions for booster clubs, PTAs, PTOs, and parent teacher support associations. The department must then publish these reports on its website for at least three years, creating a public financial transparency mechanism for non-exempt school fundraising organizations.

Why is this important

School support organizations handle significant sums of money raised from parents and community donors, yet historically operated with minimal oversight or public accountability. This transparency requirement allows parents, school boards, and the public to see how these funds are being spent, potentially identifying misuse, inefficiency, or financial misconduct. The bill became law in April 2025, making Tennessee one of the states with explicit financial reporting requirements for these organizations.

Potential points of contention

Exemption disparity: Booster clubs and PTAs are exempt despite often handling substantial funds, raising questions about why certain common fundraising organizations received carve-outs and whether this creates accountability gaps

Administrative burden: Non-exempt organizations must navigate new reporting requirements, which could strain smaller groups lacking accounting expertise or administrative capacity

Scope ambiguity: "School support organization" may be interpreted differently across districts, potentially creating uneven application of the transparency mandate and confusion about which organizations must comply