PTO Today

If there is anyone out there that can offer some advice on this situation, I would really appreciate it!

As a fundraiser, our PTO asks parents to sell products or donate money (they have a choice). We have a several parents that are required to donate though their company and have selected our PTO to place their donation. The dollar amount on these donations are larger then what we ask each parent to donate. Recently, a parent who donated $1,500.00 on behalf of this parent through United Way told a teacher that since she is only required to donate $175.00 to the PTO, she will give $800.00 of that money to the class field trip fund. This is how I see it, please let me know if i'm wrong or if there is a way this can work. First of all, we still haven't recieved the $1,500.00 from last years company donation (I guess they are trying to figure out how we can get the money sooner?!) As I see it, with all due respect, the money is not hers to say where she wants it to be spent. The donation came from her company to the PTO (a non profit organization) who then allocates where the money needs to be spent. Regardless of the amount, a parent should not be dictating where there money should be spent. For example, I donated $300.00, can i say that i want $100.00 to pay for a TV in the class room. That would get out of control. I feel I'm starting to overthink this situation and would really like the opinion of someone else. I'm also concerned about the non profit laws that would pertain to this situation , if any...

Your input is appreciated!

Hi

The parent does have the right to "direct" a donation. This is not uncommon for non-profit charitable organizations to receive "directed" donations. On a larger scale for example, a donor makes a donation to a large university for the purpose of funding a library; not a scholarship; not research but the library. Any organization has a right to refuse a donation.

When I make a donation for example to the American Cancer Society in support of a friends participating in the Pan American Challenge my donation goes directly to that event not to the general cancer society. My company offers matching funds and if I want it credited to the Walker I have to "direct" the donation.

I would accept the generousity of the individual. H/She obviously feels passionate about field trips. This is a great funding source.

As far as receiving matching funds from a business - I assume you are a 501(3)c organization. Typically large businesses ask employees to "register" the organization. To do so, they need your Federal EIN #.. and then there is a process by which they validate the information. Most are now using on line mechanisms for the non-profit organization to record their receipt of the donation with the business. Most businesses release "matching funds" on a quarterly, half year or yearly basis.

I would ask the individual what the process is for h/her company and the matching gift cycle for planning and tracking purposes. S/he may have paperwork you need to fill out.

Our PTO is not yet a 501 (3)c organization, as of yet, although we've filed. For now, I donate directly to the school (matching funds require it to be a 501(3) c. When I do so, I do direct the donation for a specific use, typically enrichment and/or teachers wish list. I registered the school with my company, I print out the verification, give it to the principal, and she logs on-line to acknowledge receipt. Right now.. anything "acknowledged" from 9/1/08 forward -- the checks will be sent end of Q109 - they will be received first week in April.

The principals plans accordingly to that schedule.

It sounds like this parent is meeting the required $175 and then going above and beyond with the desire to direct it to a particular budget line item. That's great. I would again, just find out the matching gift process for planning and tracking purposes, including the cycle for the disbursement of the gift

Hope that helps.

In regards to your statement:

" We have a several parents that are [B]required[/B] to donate though their company and have selected our PTO to place their donation"

I'm sure the parent is not "required" to donate through their company; but the company offers an optional payroll deduction charitable contribution program and/or a matching gifts program for employee donations to 501(3)c. Companies do offer distribution through United Way via payroll deduction; as well as and/or offer matching gifts for 501(3)c employee direct donation to non-profit organizations. In both cases organizations need to be registered and fund disbursement is on a cycle.

I would ask the parent how it works with United Way. If the PTO is registered etc.. what paperwork she needs from you etc., fund disbursement cycle, Company United Way administrator. For planning and tracking purposes it is reasonable to ask..I can tell you with United Way it can be a little complicated, so assist this donor paperwork wise so as not to miss this opportunity is recommended.

As far as directing the $-- that is reasonable as well.. whether it be a company or a private donation. It isn't uncommon at all -- and is not in violation of any non-profit laws.

Boy--if someone were to give me that amount of money I'd sure be gracious and put it against whichever program they thought was apppropriate. If it is toward the class trip fund it is still benefitting all the children and then you don't have to worry about putting the 800 in there you were going to have to and can use that 800 toward something else.
No need to fight on this one. Smile, take the money, put it where she wants you to and say "Thankyouverymuch".
d

As the others have stated, the parent does have the right to make a targeted donation. And the PTO has the right to accept or not accept it.

If she taking part in a general fundraiser, such as a catalog sale or event, then her purchases/donations would go into the "pot". But if she choose to give or to organize a donation for a specific purpose, she can do that. The PTO can decide whether or not it is willing to accept the specified donation.

The only twist here is that she's doing this as a United Way payroll deduction. Under THEIR rules, a donor probably can't dictate the use of the funds beyond the recipient organization. Frankly, I'm surprised they've even found a way to make that work. United Way has been reorganizing their charitable pass-throughs and limiting the non-profits who receive funding. Here in Texas, a PTO couldn't be added. Our program features more social service type organizations.

Still, if you are assured of actually getting the funds, I'd take it in a heartbeat.

Last year my family donated $500 to the scholarship fund. We weren't interested in giving money generically (or at least not that much) but wanted to support that particular initiative. Our PTA unit took it gratefully and applied it only to scholarships.

Indeed, the school committee in my town must vote to accept any donations, and in part, it's so they can decide that the restriction of the donation is appropriate (and, perhaps, that they want to accept funding from Organization X).

I guess I've never heard of a PTO voting not to accept money; as the others have said, if it's something the PTO does, who'd reject the money?

I do know that the IRS would like you to keep track of any donor-restricted assets that carry over to the next year. We have some money that was collected at a playground fundraiser that I have to track. Someone else on this board mentioned you should say "fundraising for the playground and other PTO projects" so you don't end up with too much money for project X that you legally can't use elsewhere -- if you're friendly with the parent, then tell them it's earmarked for X, but would they please not put in the restriction? But it sounds like you're not so friendly with this parent.

Thank you for your responses! Actually, I love this parent and would do anything to accomodate her in anyway...I just wasn't sure "legally" if redirecting that money was ok and this situation possibly creating a presidence for other parents to direct their donations into only their classrooms. I see that anything over the $175.00 can be directed anywhere they would like....I can accept that!

I understand the willingness to accomodate someones generosity but the concern is that by allowing individuals to dictate the budget can result in having areas that are not funded and supported.

What happens if you then have all the parents who give a bit more dictate where it goes? It can become a management nightmare and the PTO organizations are not that big.


Yes when you give to a University and allocate it to the Library and not reaserch those huge organizations have it allready divided and separated. I know our PTO is not that big is yours?

In addition the detail of it being promised to a teacher can cause the perception of preferential treatment. The organization needs to remain un biased when it comes to these allocations. If an individual chooses to gift that to a teacher/class then they can do so directly.

Is this the only time you have had anyone make this request?

Also you do need to consider how this will be viewed by the rest of the teaching staff and other parents who may not have the means for the extras. Will they feel like they don't have a voice?

I would hope the charitable foundations such as the PTO is where we have an opportunity to level the financial playing field. That when everyones monies, regardless of the amount, once put together can make a difference for the entire school.

JHB brings up a key point in regards to the Unitedway donation. They can not direct contribution and this could impact orther future donations from Unitedway and any other organizations that may have the same philoshophy.

Excellent points. This kinds of dictation would seem equivalent to the tail wagging the dog.

an important point missed in this specific situation is that the parent wants the money the she donates throught the United Way given to a specific field trip that is not funded by the PTO. The money would go to a field trip fund and paid out separate than the PTO budget. Does this change your ideas?