Years ago, we just issued each teacher a check for $X (all the same amount)and sent them on their way. When we researched becoming a 501c3, though, the IRS had a different recommendation. The IRS told us we needed to collect receipts to justify the expenses. The receipts are our only proof that this money (a large % of our annual expense budget)is spent in accordance with our "exempt purpose" (this is the IRS's term for our reason that we are considered tax exempt). It seemed important to the IRS that this money was a large portion of our budget, not just a small gift to one or two people.

Now we issue each teacher a letter and a printed envelope at the start of the year. They collect receipts in the envelope and turn it in to the Treasurer when they have the right amount of reimbursement. Frankly, we just seal the envelope and issue the standard reimbursement check. We don't haggle them over the specifics of their expenditures, but we have the receipts in our files in unlikely case that the IRS would come calling. Our teachers are fine with this approach.

We have done something similar to onarollpto for many years - even before I became involved

We offer Teacher Allocations to all classroom teachers and one of each specialist (art, music, gym, science, etc.). It has been for $100 the last few years.

We don't require receipts - it is just granted to them. We figure a teacher will spend more than that out of pocket on school supplies anyway. However we do include a cover letter explaining why the PTO is giving them this money and what wee expect them to use it for. That seems to work for us.

As far as LUVMYKIDS question is concerned - we certainly don't get the teachers SSNs so we just give them the allocation and don't take taxes out of it. I assume it is more like a "gift" than "income".

Thank you for your advice and insight. It sounds like our best bet is to avoid "cash gifts" to teachers directly.

Someone correct me if I'm wrong, but if you give the teachers cash then they have to report that on their income taxes. Also, I would just be uncomfortable with handing someone money and relying on them to spend it in the fashion it was intended.

If you want this money spent on supplies for the classroom, then do as our group does-allot an amount per teacher and the teacher then turns in receipts or does purchase orders through the school and we reimburse the teacher or the school according to those receipts and P.O.s. Or you can give the money to the school to hold in a fund designated for the supply program with an amount allotted per teacher and let the teachers turn receipts into the school for reimbursement. Your school may prefer this method because it lets the principal see what his/her teachers are purchasing, but it is more work for them.

Our PTO handed out "teacher grants" years ago where the teachers submitted requests for certain amounts to be reimbursed and then funds were doled out on a first-come-first-serve basis. I was not a part of the PTO at that time but I understand that became extremely tricky because the PTO was having to justify why Teacher A got $100 and Teacher B only received $20. I also understand that written requests with receipts were involved but it still turned into some bickering of "why did so-and-so get...?"

As of this past fall I became president of the PTO with several other new members, we reviewed several issues such as reimbursing the teachers for expenses that we know they pay out of their own pockets for supplies in their classrooms. Here is the decision we came to - all the classroom teachers totaled 48 people and this included grade teachers, gym, art, music, reading lab, math lab, etc. We took any staff member with a "classroom setting" and presented them with a check for $50 at the Staff Luncheon. The other staff members, such as teacher aides, were presented with a few hundred dollars earlier in the year to buy some much needed equipment and supplies.

This seemed to do the trick! The PTO was able to help the teachers replenish their pockets for their own money they used throughout the year. We have heard wonderful comments about the whole process and we feel good knowing that the aides were taken care of earlier in the year with a "gift" and now the teachers received theirs as well. Our key decision was in keeping the amount given to each teacher the same across the board - to keep it fair for everyone.

Now, this was our first year doing this and it was a total surprise to the teachers. Next year, and the teachers / staff are aware of this, our PTO will revisit the "do-ability" of reimbursements again and we will ask that receipts be kept throughout the year and turned in toward the end of the year, more for our record keeping than anything else. This way, if we ever need to go back in time with a "Why did we...?", we will have a paper trail to match the checks to.

I know this was very long and rambling but I hope it helps give you an idea of how something - that can turn sticky - really can work out for everyone!

Our PTO handed out "teacher grants" years ago where the teachers submitted requests for certain amounts to be reimbursed and then funds were doled out on a first-come-first-serve basis. I was not a part of the PTO at that time but I understand that became extremely tricky because the PTO was having to justify why Teacher A got $100 and Teacher B only received $20. I also understand that written requests with receipts were involved but it still turned into some bickering of "why did so-and-so get...?"

As of this past fall I became president of the PTO with several other new members, we reviewed several issues such as reimbursing the teachers for expenses that we know they pay out of their own pockets for supplies in their classrooms. Here is the decision we came to - all the classroom teachers totaled 48 people and this included grade teachers, gym, art, music, reading lab, math lab, etc. We took any staff member with a "classroom setting" and presented them with a check for $50 at the Staff Luncheon. The other staff members, such as teacher aides, were presented with a few hundred dollars earlier in the year to buy some much needed equipment and supplies.

This seemed to do the trick! The PTO was able to help the teachers replenish their pockets for their own money they used throughout the year. We have heard wonderful comments about the whole process and we feel good knowing that the aides were taken care of earlier in the year with a "gift" and now the teachers received theirs as well. Our key decision was in keeping the amount given to each teacher the same across the board - to keep it fair for everyone.

Now, this was our first year doing this and it was a total surprise to the teachers. Next year, and the teachers / staff are aware of this, our PTO will revisit the "do-ability" of reimbursements again and we will ask that receipts be kept throughout the year and turned in toward the end of the year, more for our record keeping than anything else. This way, if we ever need to go back in time with a "Why did we...?", we will have a paper trail to match the checks to.

I know this was very long and rambling but I hope it helps give you an idea of how something - that can turn sticky - really can work out for everyone!