Thanks to everyone for your replies. You've confirmed my gut instinct, which was to stay away from this type of incentive. I now feel better equipped to argue my point. Many thanks!
While I'd love to have 25 bucks for each time I "hit my goal", if you are a non profit org. it is ILLEGAL to give org.funds to members unless they are employees or unless they are being reimbursed.
While it's an idea that is generous in spirit, I tend to think that Fundraising Chairs would not be motivated by it and would prefer that the all the fruits of their labor benefit the students rather than a portion of it, no matter how small, come back to them in the form of a gift. A well written thank you note should more than suffice.
Our Parent Group is considering giving personalized gifts to Fundraising Chairs who successfully manage their respective fundraiser (i.e. - reach their financial goal!). The gifts would be paid for out of the funds raised. I'm assuming the gifts would probably only cost $25 or so.
Is this a legitimate expense? Does this set a bad precedent for buying gifts only for the volunteers who raise money? Does this put too much pressure on parents to raise a lot of money or is this a good incentive for parents?