You are jeopardizing your non profit tax status by allowing inurement of a member. Not only that, but the teacher would be responsible for the income taxes on the amount given to her.
Any one that can access a computer can pull up the info on the IRS website and see that giving money to an individual member (when it's not employment compensation or reimbursement) is illegal.
OMGosh--I don't know if it jeaprodizes anything but I would say it is an absolute abuse of PTO funds to do this. I cannot believe they would use what some folks have as an entire years budget on one person vice the entirity of the school. I would feel strong enough that I would start a petition of members and non members telling the PTO that you find this distribution of funds absolutely outside their role as an organization established and collecting money on behalf of the children. I would also offer my services to head up a fundraiser or a program dedicated to raising money for the teacher as an individual but even as emotional as this is -- there has to be some sort of oversight on the distro of funds.
someone smarter than I can discuss the 501 portion of it but man--that's just awful.
d
Our PTO is a 501 (c)(3) and the Executive Committee proposed a payment of $15,000 from "excess funds" toward a teacher's medical bills (this in addition to considerable funds raised through school generated events). Our PTO does not publish an advance agenda. I've contributed to the fundraisers for the teacher but don't feel the money our PTO raises is appropriately spent for this type of expense and certainly not at the decision of the Board (those present did vote on it but there's intense pressure to "go along to get along" or suffer the consequences). Could this jeopardize our 501(c)(3) or state or national PTO standing? Could our PTO be subjected to discrimination if they don't do the same for every school employee who is unable to pay their medical bills?
PresidentJim;138999 wrote: At one time we had a couple of computers donated and request that they follow my daughter throughout her time in the school, meaning that each year they go to her new classroom.
Each school will accept donations (and restrictions) based on its own guidelines. In Jim's case, many school's would not be prepared for this level of restrictions. And by tying the donation specificially to his daughter's benefit, it would be unlikely the IRS would allow them to be eligible for a tax deduction.
Those are all things to consider when making the donation.
This donation does not seem as though it should be going through the PTO, unless it is a direct result of a drive that the PTO is holding (it doesn;t sound like that though).
I have requested and received computer donations for my children's school through my company. Usually the comapny will have guidelines that should be followed as well. When a single person donates something to a school usually it will be up to that parent to stipulate their desire of how the donated item should be used. For example, we received 4 computers and requested that two go to my son's classroom and 2 others go to my daughter's. At one time we had a couple of computers donated and request that they follow my daughter throughout her time in the school, meaning that each year they go to her new classroom. Since we obtained new ones we told the Principal/teacher that the other ones could stay with her old teacher.
So, usually the donating parent should have a say as to how they are used. Also it likely depends on a town's rules, but I've never heard of a distict trying to take them for a different school. it is usually donated directly to the school via the Principal.
Thank you for responding. Our PTO has set up a meeting with our director of technology and our superintendant for next week. We will see where it goes.
