I think the only concern would be that even though it is going back out again, it would be considered income to your group and you would have to claim it as such, just as you are to include the value of donations. I would check into that.

It's interesting because at our school that would be a big problem. Our Parents' Club (private, religious school) would not pay to send parents to an event, even if it was donated and was school-related. They would expect parents to pay that themselves. Our new principal has sort of adopted a policy where he does not want to "nickel and dime" our Parents' Club and save our money for the big stuff. With the old principal, she would come to our meetings and ask for money to repair the water fountain!!! Now the principal is waiting for the "big stuff" and trying to fit the little stuff into the school budget..Just my ramblings..
PMCW

I don't think it is a problem (in regards to your charitable group status) to do this, but our group has a policy that if it does not help a group of children then we don't do it. We would never accept a donation earmarked for just one child as it comes close to being against our bylaws. Our bylaws state that we are to benefit all of the children at the school.

It is OK to accept donations with a stipulation on them. However, donations with the stipulation to help the person giving the donation invalidates the donation as a charitable contribution and therefore can not be deducted on their taxes. I assume that is the aim of them handling things this way.

Donations can be made with a stiputlation for purpose (city ravaged by natural disaster, for example), but not individuals.

I work on a foundation where parents tried to "donate" scholarship money that their own children would then be awarded. Can't do it. This is kind of the same thing.

I think this is okay because it is a help to the children who are in the competition. What I would do is have your treasurer open a seperate account that is soley for the purpose of holding this money and distributing it back out. Give the fund a name and just keep it seperate from your regular PTO stuff.

Hello again, I'm posting this question under this topic, as it occurred to me it might be a better fit!

Is anyone out there whose PTA/PTO has accepted donations from outside groups, with the stipulation that the donations are to be used to support/fund/reimburse a specific group that is not sponsored by the PTA/PTO? I'm trying to work through what I'd like to do to help, vs. what might be trouble down the road. Any thoughts, feedback, etc., would be appreciated.

The donations that we have been asked to run through our books are donations that would go to help parents offset their own travel costs to accompany their children to a competition later this month. The children and one of the parent sponsors has been paid for, through another source. The parents decided to solicit donations to help pay for themselves, and asked our group to be the keeper of the money, and then distribute it accordingly. It's a different kind of situation than I have ever run across, so I'm trying to get some feedback, because I'm sure something like it will come up again! Please, if you have any thoughts on this, please comment! We're trying to get to a positive outcome for everyone. Thanks.