Question: Non-Profits donating to other Non-Profits

Our PTO has been asked on several occasions to donate money to other Non-Profits. Those Non Profits are not of a political nature. They include groups like Relay for Life and a Teachers Union group that donates Toys to children. As a Non-Profit is it legal for us to donate to these causes?

Asked by NCBeachMom



Advice from PTO Today

Craig writes:
The IRS allows 501c3 charities to donate to other 501c3 charities. Two suggestions, which you may already be following: When you are considering donating money, think about how the cause matches your mission. ie Does it help children in your school's area, does it aid the school or district in any way, etc. Second, set a budget for these donations and don't exceed it. There are lots of worthy causes, but your first concern, obviously, has to be your own. If you approve a set amount of donation money at the beginning of the year, it will be easier to say no later on when more groups come calling. In addition, the IRS requires that you spend your money in line with your mission. You don't want to spend a substantial amount in a way that doesn't advance your group's purpose. It's nice that you want to help, but it's important not to overdo it.

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