Our fundraising helps pay for field trips too. But it is across the board even. For example, our 4th graders go on a field trip that costs $120. Our PTO pays for 1/2 the trip. We simply remind them of this when we ask them to participate in the fund raiser. wink wink. Of course, not all families can buy the fundraising products. But it is a good reminder that they DO benefit from the fundraiser in a very direct way.

This is definately a question for the IRS Non-Profit line: 1-877-829-5500. But it's also one that has bugged me over the years, so I went ahead and called. I share what I learned from the rep (got thru with no wait time), but you might to call and pose the details of your specific situation.

I asked the IRS rep if a PTO could tie the fundraising profit raised by individual families back to offset their personal cost of field trips. He put me on hold for a few minutes and came back with the aswer I expected: No. Any profits raised by the PTO must be allocated evenly across the board, and cannot vary based on a families' personal fundraising results. That means if the total cost of the Washington trip is $80,000 ($800 x 100 students), then the PTO could donate $xxx to the school to reduce the per family cost to, say, $750. Probably not the answer you were hoping for, but that's the word from the IRS rep I spoke with today.

There are groups that do individual fundraising, I know. But maybe they're operating out of ignorance, under different rules or under the radar. I wouldn't try to speculate.

Keep that IRS number handy. The reps really are helpful and easy to talk to. That number is just for non-profit questions so you dont have to wait in line for regular tax-return callers.

I am looking for some insight on an action plan we presented to our school with regards to Fundraisers we have set forth for the coming year. We are doing three. Innesbrook ( fan fav) , Cookie Dough works , and Holiday wreaths and ects sales . We do several other fundraisers but these are the parent driven fundraisers we have this year .
In a down turn economy we are concerned how are families(members) will struggle with the costs associated with the grade level field trips planned. Some cost as little as 8.00 others 800plus. We survey familes and when given the choice they would pay up the trip and negotiate a payment plan for tuition balances and a large amount said they just won't be able to send the kids this year .. Some familes are trying to feed themselves let alone send thier 8th grader to Washington for a week. (800plus pocket money No food included) .
We divised a plan where the proceed each family raise thru these 3 particular catalog sales would indivially(per family) profit and those profits would go twards that families balance with the school . PTO will cut a check to the school in the honor of ( in memo) the family . The funds then could be allocated to pay off the trip. If the trip is already paid off the parent has the option to fundraise for our hardship fund ( no kid misses a trip) or payoff a balance they have for tuition ect at the school. Majority survey showed those parents would split put 1/2 in hardship the other tawards an outstanding balance.

Are thier any know tax issues I need to be aware of ?? The accounting seems simple on our end(PTO) . Has anyone ever done this before and have hany tips .. please share I appreciate it .