Question: charitable donation to school tax issues for all involved

Our NJ PTO wants to donate the air conditioning system in the cafeteria. The BOE is asking for the gift. The air conditioning company is asking for the PTO check. What tax implications are there? The system will cost $50,000. It's a gift. We are a 501 not for profit. Are there tax consequences?

Asked by Anonymous

Answers:

Advice from PTO Today

Rose H writes:
Hi there,
We don't believe there would be tax implications here. It is common for a PTO to "gift" the money to the school for a specific purpose. In your case, the school in turn buys the air conditioning system. Another approach is for the group to purchase the system and then gift it to the school.If you are a 501(c)(3), rules/regs on purchasing and making donations would apply.

Rose