I don't believe that there is any regulation about gifts not being able to exceed $5. Generally, gifts cannot exceed $25 in order for them to be deductible (see IRS publication 463--even though it is for businesses, I think it still applies).
There is, however, some expectation, if not a requirement, that tax exempt organizations spend money on things that further their stated mission. Unless part of your mission is to help your teachers buy new clothes, or Christmas gifts for their families, I don't see how handing out Walmart cards for any amount is going to fulfill your mission. When you go to list those expenses on the "program services" section" of your tax return, how are you going to describe what that money was spent on if you can put no restriction on how it is used?
I would think that something like Blackboard Bucks is different and more appropriate because, although I suppose it's possible that a teacher could use that money to buy a new desk for her house, it's more likely that they use the $$ for items they need for their classes. Staples is a big place, but it's not like you can buy clothes there.
I think the walmart gift cert. are like the blackboard bucks program that is advertised on the home page. I received literature on the blackboard program and all you have to do is purchase the gift cert. and the teachers can spend them in staples. maybe your pto president should look into this program. I did because it is less paperwork and the teachers can buy what they may need for their classrooms. Now I just have to present the program to our members and see if they want to use the program. Hopefully this helps.
:confused: Last year as the PTO president, I increased our teacher fund from $150 to $175. However, unlike previous years I required the teachers to submit receipts for their reimbursement. Most agreed with this new approach to supplementing district funding, however some teachers and a couple of parents thought this to be unempathetic to the fact that this used to be a GIFT and should be treated as such. I am under the understanding that non-profit orgs are not allowed to give donations to their own members exceeding $5.00. Can anyone tell me the bylaws or regulations governing this issue? Because our new PTO Pres is one of the parents from last year who thought it should be a GIFT and has stated that she will be giving Wallmart Gift certificates in the amount of $175 and not require accountability. Is this LEGAL or just blind benevolence? We parents should no where our fundraising dollar is going, right? Thanks for reading this any knowledgeabe advice would be greatly appreciated!! signed, former seltzerpres :cool:
