I am very interested on this subject. On Friday we had a third grader at our school pass away unexpectantly. Saturday, was our Spring Carnival. We sent letters home with the students informing the parents of this tragedy and that at the Carnival we would be accepting donations for the family to help them cover expenses. We raised $300.00, for the family from the students, teachers, and parents. We would like to do more for them. Our PTO officers have gotten together and have discussed raising monies for the headstone and matching what we raise from our school account. What do you all think about this?
I would also like to comment on Gifts for the Teachers. During Teacher Appreciation week we give each of our teachers $25.00 this is for them to buy items that they need for their classrooms. Last year one teacher used the money to buy a fan for her room. The rest of them bought things like extra glue, crayons and sissors. Items that benifit the students. Not themselves. They have also used the money to buy snacks or to treat the kids to a pizza party.
When a family in our school was faced with a child with leukemia and very serious complications. the parents rallied and brought them dinner form months taking turns. The school, boy scouts girl scouts also formed a team for the leukemia society's light up the night and was the largest fundraiser, we raised oalmost $14,000 in honor the family member. It was such a fantastic community effort. The kids learned a valuable lesson in compassion and working together. It was much more meaningful and appropirate than a financial donation. However each situation is unique.
I would like to find out about this subject as far as donating items to "staff" since our schools has always given to the staff:
Teacher Appreciation Week, Adm.Asst.Day. This gets to be a interesting subject. It is understanble that the IRS makes the rules but what happens when you just want to give a little appreciation. It will only take one parent to get upset and call the IRS and let the know that the organization is not following the guidelines of the IRS.
<blockquote>quote:</font><hr>Originally posted by JHB: I would love to have a lawyer's take on this. (Tim - Ask Elly??), because I'm not sure I agree with some of the interpretations.....
As I say, I'm not a lawyer. But as a lay person reading through the stuff, it seems a PTO could definitely get in trouble if the assets were used to benefit a decision-maker (Board member, principal) in a personal way or if it couldn't justify assistance within the context of its goals and purpose.....
However, I don't think it's correct to flat out state that 501(c)(3)'s can't use their resources to benefit an individual. It seems to me it's not quite that simple.<hr></blockquote>
Agree with you, JHB.
We will try and get an expert opinion here for an Elly column (or before!).
Also agree that I suspect the IRS rules are not so black-and-white here. Nonprofits I know give thank you gifts; they give welcome gifts -- all kinds of things. I'd think that both: a) the size of the gifts (especially as a %of your total revenue); and b) whether the gift-giving can be construed as helpful to your nonprofit cause (thank you gifts to teachers could really help the atmosphere at your school, and creating a great atmosphere at school might be close to your stated cause) are both factors in that determination.
We have an IRS agent speaking at our Chicago Show next week. I'll try to remember to ask him or her.
Does anyone know where I can find the specific IRS rules or code on 501(c)3 organizations that specifically states that you can not donate CASH to a PTO family in need? I've read Publication 557 and the instructions for the tax return and I can't find anything yet several people are quoting the IRS as stating that you can not give to PTO families in need. HELP!
