I hope JHB chimes in on this topic because she puts it so clearly. In her absence, I'll address the question. It's my understanding (from filling out two 501c3 apps and talking to the IRS about this subject) that the IRS expects us to keep such "gifts" modest. That is, the amount a PTO gives outright should be small in proportion to its overall budget. What defines "small"? I don't think the IRS will give you a specific percentage. There may be an IRS Publication that gives more information on this topic, but I've never seen a specific threshhold or percentage.
When our PTO applied for 501c3, the IRS advised us to stop giving classroom checks outright. The money we allocate for classroom supplies is about 20% of our total expense budget -- too high to be dispersed without documentation. The IRS expects us to be able to prove that our money is spent in accordance with our approved mission statement. That's one of the reasons they granted us (or any PTO) 501c3 status. So, we now ask the teachers to turn in receipts that total the amount we allocate ($90 per teacher). We file away the receipts, and cut them a check. We don't review or debate the teachers' expenses, but we have the receipts so our documentation is in order.
Still want more info? Call the IRS non-profit reps directly. They are easy to talk to and you can't get any more definitive answers on the subject than straight from the IRS. (I hope the phone # is on the useful resources page)
I would continue giving them the "amount" but in the form of a gift certificate like we do at our school. Our teachers are given a cute letter saying "The Parents' Club is thrilled to give you $200 to spend on classroom supplies". They submit their receipts to us and are reimbursed. Of course, I suppose if they were dishonest they could just buy some stuff for themselves but I don't think they do. This way you can see what they're buying. I would never give them cash.
Shelly
I'm very interested in this subject, I just posted something simpler to this. Our PTO seems to be giving alot of money out to the teachers and staff and the children who went out door to door, or to family memebers to sell fundraiser stuff is getting zip of this money made. I would like someone to tell me limits on how much can be spent on gift cards, teacher luncheons, drama club money, etc. And we are not talking small amounts. I did read a article posted in the PTO mag. a few months ago about the 501 (c) (3) and watching how much you give out. But I would like more information on this. The kids earned this money they should benfit from it.
Hey Calvary Mom
How much do you give to each of your teachers? The concept of spending PTO money to benefit the teachers with meals and gifts is something I've been thinking about recently.
Just curious about how much you spend on this because it's sort of an unusal practice, I think.
(a really nice one though!)
Shelly
I had the great joy of handing out the PTA Christmas $$ gift to our teachers and staff last night. In our tiny, private, faith-based school, the teachers and staff are paid so little. They teach/work almost more as a ministry to the kids than as a way to make a living. We wish we could pay more, believe me. The gift we give them at Christmas is the PTA's way of acknowledging the sacrifices they make for us, which are legion. Since the PTA only does, maybe, two or three fundraisers a year, "all the hard work" issue raised doesn't really fit for us. We're so grateful for the loving attention they give our children that a little green at Christmas time is the absolute LEAST we can do.
What are you giving them this money for and why?
Is it to empty the coffers at the end of the year?
This leads to other discussions on this forum.Is it ever a good idea to give money away that students and parents work so hard for?
I don't know about your district, but our teachers make more than most of our school families. My vote would always be with money being spent in the school, for the kids.
Staff appreciation is fine, but not when it involves spending huge chunks of cash.
Instead of writing a check directly to the teacher, why not a Blackboard Bucks program, or a teacher request list, or even a reimbursement for supplies program.
I have seen lots of post concerning money given to staff, and I can't imagine any scenario when that would fly at our school.
Sorry this doesn't answer your question directly, the leagality of it is unknown to me, but the morality of it bothers me.
