Question: Receipts needed for grants to teachers?

Our PTO sets aside $25-50 per teacher to help with classroom supplies. Currently the teachers must submit their receipts for reimbursement. Our principal has suggest that next year we just give the teachers the money and let them spent it without turning in receipts. I'm all for making things easier for the teachers, but worry about any implications to us as a 501(c)(3). Are we required to maintain receipts? Or is it okay to give each teacher a $25 grant? (I would still like them to submit something about what they used the money for so it doesn't become just another expectation...)

Asked by Whitehead

Answers:

Community Advice

mum24kids writes:
The IRS allows gifts of up to $25 to be given to a person and be deducted, and also only requires receipts for expenses of $75 or more. (See http://www.irs.gov/publications/p463/ch05.html) So you're fine on giving the teachers $25 grants, even if they don't use it for what you want them to use it for.