Question: funds for scholarships

We are a PTO with non profit status and our own tax id. The school wants to use funds for "scholarship" being, using some funds to help some students attend field trips. Are there any rules or guidelines regarding this?


Asked by redmarmie

ANSWER IT


Answers:

Advice from PTO Today

Craig writes:
Using PTO money to help students attend field trips is well within IRS rules. It sounds like you're talking about funding the trips specifically for needy children who would otherwise be unable to afford them, which is a very nice thing to do. The best way to do this is to have the principal choose the students to be helped, then give you a number of scholarships and an amount for each. The key here is that the PTO shouldn't get involved in choosing which students to help. For one thing, the information should really be kept confidential. For another, you'll avoid any conflict of interest if PTO board members need financial help for their own children.


Answer this question: