<blockquote>quote:</font><hr>KCSwann, I'm counting on you to know the answer to this<hr></blockquote>
Yikes, I didn't know I was developing a reputation. I also apologize for GAFIAting for a few weeks.
The truth is, I'm not sure, but I doubt there is anything in 501(c)3 to prevent it. There is certainly opportunity for conflict of interest, and the officer has a fiduciary duty to attempt to obtain the best value (but note that price is only one componenet of value -- service and quality are also important).
I would agree with Tamo, and suggest that having somebody else make the buying decision is the best way to go.
It might be worth quietly mentioning to her that it has the danger of the appearance of impropriety. If parents perceive her to be serving the PTO for her own (perfectly legal) enrichment, it will cut their desire to support the PTO. "The look on your child's face" should be the only necessary answer to "what's in it for me?". Suggest that it may not be necessary to shop somewhere else, but that it might be wise to do a little shopping around to show that the PTO is getting good value.
Is she giving the PTO a discount? That's another way to clear up any potential issues, and a way for her to do well by doing good. She can take the difference off retail as a charitable contribution by the store. If parents know that this particular store supports the PTO with a discount, that favorable impression increases their desire to shop there.
KCSwann, I'm counting on you to know the answer to this:
According to 501c3, can the PTO President purchase all supplies thru their own store? I understand that they can't be penalized for having the store, that they are entitled to a fair deal, but can they be the sole provider to the non-profit group over which they preside?
I don't think there is any question that there is a conflict of interest with this, and my own personal set of ethics tell me that I certainly wouldn't do it, but I'd like to know if there is anything in the rules that say NO, YOU CAN'T.
