PTO Today

Hi. Another parent and I are working on our 501c3 application and we have a disagreement over interpreting the language/intent of this question. The question as written is:

"In carrying out your exempt purposes, do you provide goods, services, or funds to individuals?"

We do provide funds to artists for Artists in Residency programs, as well as to teachers for supplies and training, students for field trips and clubs, other individuals for workshops, etc.

I would think that we would answer yes to this question, but the parent I am working with thinks that this question might be asking if we give grants or use funds to support individuals. The instructions for the form does tend to lead to this interpretation, as the examples they use include "food to the homeless, employment counseling for senior citizens, or grants to victims of disaster."

Any thoughts?

Thanks,
Tim

For most PTOs, I believe the correct answer is "No". The artists and field trip examples aren't you guys giving money/charity to an individual; they're you guys paying an individual to perform a service that fits your mission ("making your school great" or "supporting the educational opps. for the students of XYZ school").

Tim (difft Tim)

I'd agree with Tim on that interpretation. On the programs, you are reimbursing for services. Fieldtrips, no. That's different.

On the other, I know it's common to say "the PTO gives money to the teachers". But technically, you don't (or shouldn't). You provide money for classroom supplies and equipment. Each teacher, as an agent of the school, utilizes those funds. The money is for the CLASS and the SCHOOL, not the teacher as an individual person.

What they are looking at is if your organization is giving funds/goods directly to people, and if so how and and why. For instance, if you were social services non profit and gave people money for food and rent, that would be a "yes".

Our PTO was asked about paying for tutoring for particular students who needed help with standardized tests; this would have fit the "funds to individuals" thing, and we would have had to document our process of selecting who those funds/grants went to. We decided it wasn't something our group would do, so we checked no.