Our PTO could never buy the principal a new computer for use in the school, we've been down a similar road before.
The good news is I have a definitive answer. I contacted the company the computer would come from and they quite clearly that the computer would have to be used by the 501-c3 organization to which it was donated. "that is the organization accepting the equipment, then that organization would be the one that uses the equipment and it cannot be transferred, auctioned, raffled, or sold."
Now we have to tactfully decline the offer without causing offense.
I definitely would not sign anything (nor give an official receipt) that I didn't believe to be true.
But I'm guessing that the nonprofit mission of your PTO is somewhere along the lines of "supporting XYZ school" or "helping provide the best education for the kids at XYZ school." In that light, getting a computer for your headmaster to use can certainly be defended as helping to fulfill your mission. Could you accept a donation of a computer and allow your headmaster to use it to help run your school? I don't see why not.
What if your PTO had decided on its own to purchase a computer for the headmaster's use? That would be OK, wouldn't it? Now imagien that you made that decision and then at the last second someone offered to donate that computer to your PTO, rather than your going out and buying it.
I'm not a lawyer or an IRS specialist, but this seems technically OK to me.
Now if it was a donation of a new car for the principal or a trip to Tahiti (or something that similarly couldn't be characterized as fitting your mission), different story...
And...it's a GIFT...which means once it is made then they have no further control. If it is NOT a gift then they are giving the Principal a free laptop and the school should sign for it!
I don't know the specific rules or laws but these are the issues that would worry me:
- Perception. It appears to be unethical. If folks didn't approve, it could affect the level of fundraising and volunteer participation.
- Control. If you're being pressured to do something you're uncomfortable doing, the other person is likely getting a lot more out of it than you are.
- Fairness. Even if you decide it's legal and ethical, is it a service you're willing to extend to every parent who might benefit from donating to the school through the PTO?
As far as laws, irs regs, etc, there are others who know a lot more than I do. I'm sure they'll chime in with some good advice.
Some people come into our lives and quickly go. Some stay for awhile and leave footprints on our hearts. And we are never, ever the same."
"The ultimate aim of karate lies not in victory or defeat but in the true perfection of one's character."
Could you be a bit more specific about the red flags? This family approached the prinicpal with this idea and we were blindsided at a public meeting with it. In the past they've tried to get the PTO to fully fund the computer lab, which we didn't. Instead we worked get the company to fully fund the lab.
It has been a polarising issue at the school and I would like some concreate reasons to decline this particular attempt, otherwise they'll just continue to badger us about it.
