Question: Business Formation for Grad Night
I just volunteered to be Chair of Grad Night. Looking at previous years, they collected cash/in-kind donations. The cash donations were deposited in the bank opened by an individual as sole proprietor. I don't feel comfortable doing it this way for liability and/or tax consequences. Any suggestions on the best way to structure this? I am suggesting forming a non-profit but this will take a few months and will probably go this route for 2014 Grad Night.
Asked by alohafrancis
Advice from PTO TodayCraig writes:
Is there a tax-exempt PTO or booster club at your school that can "sponsor" the night? They could set up a separate account for grad night, and donations could be made directly to the PTO or booster club.
You could also have the school set up an account for you and have donations made directly to the school, if they are willing to do that.
Community AdviceHull writes:
I would like to know how this worked out for this district or others who have done this. I come from a very large district which has some very affluent schools and schools with over 60% low income attending. As you can imagine PTO fundraising is very different and cause a lot of haves vs have boys within the district. I feel it'd be a great thing for our community to come together and make more opportunity for ALL kids, especially those who don't get the opportunities their own kids get. It may not seem "fair" but fair is everyone getting what they need not the same. If hope the parents in your community embraced this.
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