Question: Using a third party payer system to donate to PTO (501c3)

Does anyone know if parents can still claim a tax deduction if money is donated through a third party service. Our district uses Send Money to School for lunches and athletics. We are hoping to use it to have parents donate to an "Invest" fund at our school. Basically, the parent would complete the donation through Send Money to School, they would send the money to the district financial office, they would cut a check to our principal, who would then cut a check to the PTO (which is a 501(c)(3)). We are trying to find out if Send Money can pay the PTO directly or if the business office of the district will pay to the PTO so that it doesn't have to go through the principal. Either way, can the PTO give families a receipt for a tax deduction once we receive their money if it goes through the school district business office?

Asked by Anonymous



Community Advice

gjcoram writes:
That sounds like too many steps to me. Also, are you sure the district and principal will (be able to) cut those checks?

Are you looking for an on-line solution?

Community Advice

kathkami1 writes:
I agree that there are too many steps so we are trying to see what we can do. We were trying to come up with an online way for parents to donate without using PayPal due to fees and they do not distribute more than $500 a month. Since our parents already use Send Money to School for school lunches it seemed like an easy fit. I just want to be sure that the donation would be tax deductible if it goes to the school business office from SMTS than to us.

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