Question: Allowable write-offs for donors

Our PTO is in its first year so we have not yet received our 501(c)(3) status (but will be applying soon). My question is twofold: 1) When people/companies donate to us and request our tax ID, are they going to be able to write off their donation under our EIN or should we give them the school's EIN since they are already a 501(c)(3)? 2)We are selling tiles to people and companies that will be displayed in our new school. Would all of the money they paid to have that tile be considered a write off to them (specifically companies that are technically getting advertising for their donation). TIA!

Asked by Anonymous



Advice from PTO Today

Craig writes:
The 501c3 tax-exempt designation is retroactive to your start date so theoretically businesses and people could deduct donations to your group. However, that might be a bit of a leap of faith, especially for businesses, in case for some reason you don't follow through. You're probably better off having the money go directly to the school, but in that case you can't deposit the money in the PTO account and then use it for the school. It has to go directly into the school account. I asked Shelley Gulbrandson, sales manager for Gift Bricks, your question about the tiles. She says that donors may claim 100% of their donation (to a 501c3) as a deduction as long as they don't receive anything of [tangible] value in return, such as a replica tile.

Community Advice

denmother writes:
Thanks, Craig!

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