Currently our PTO gives each teacher reimbursement for up to $100 for classroom supplies. The treasurer gets receipts from the teacher and writes out a check. If they don't spend the entire $100 the first time, a running log is kept and they may send in additional receipts until they reach the $ limit. We have been talking about possibly using a Visa card for this purpose. Teachers would get a $100 Visa card in the beginning of the school year and once the money is gone...it's gone! Have any other PTO's done this and if so, how has it worked? Our hope is to decrease the amount of paperwork as well as decrease the amount of work the treasurer is now doing keeping tabs on all monies spent by teachers. Thanks for any input you have!

According to the auditor we use, if you call it a "stipend" and give each teacher a check for a set amount no receipts are required. By calling it a 'reimbursement', you are required to collect receipts etc. We go with 'stipend' to make it easier on our treasurer. It's basically a gift to each teacher.

But if it's considered a "gift", then you may be violating IRS rules about benefiting individuals, and it's also possible the teachers should each declare it as miscellaneous income.

In my mind, these mini-grants are and should always be considered reimbursements if the intent is to supplement classroom materials and supplies. The school is still the recipient, but each teacher is the "agent" of the school for his/her particular classroom.

The IRS considers gift cards the same as giving cash because there is no accountability. Companies have to be really careful in regards to employees. For instance, if the company gives all employees a Turkey or Ham at Christmas - that's fine. No big reporting needed. But if they give all employees a giftcard, that counts as income and taxes are due.

I realize that teachers aren't employees of the PTO, but I think similar reasoning prevails.

I deeply respect our teachers and am in great favor of teacher appreciation activitities. But as a parent I would be against giving every teacher in the school a $100 gift to spend however they choose. I realize most teachers would undoubtably spend it (and more) for the classroom, but the PTO has no control at that point.

The IRS wants accountability of funds dispensed for a charitable purpose. I don't think you can achieve that with generic gift cards.

We always give gift cards, it is so much easier.

Our school district has hired a financial consultant who claims our PTSO is in violation with several of our financial proceedures...such as teachers not being allowed to particapte in PTSO sponsored fundraising events such as Movie Night, Fall Festival Booths all of which provides a way for teachers to earn much need funds for classroom fieldtrips, supplies, etc... How much say do school district representitavies have over Parent Teacher Student Organizations as our Board is very diligent about collecting receipts to account for all monies dispersed???

Our PTO collects all the money at every event. We give the teachers checks for expenses that are pre-approved at our meetings. We must have teachers to help out or the events won't happen. Also for insurance purposes we must have a school employee at all events.

If your teachers are collecting the money and using it without it going through your checking account, that might be the problem.