Question: 501(3)(C) Buying Gifts/Gift Cards

Is it legal - We host a Sober Grad Night each year. This is an all night party to keep our graduates safe and sober. Typically in the past a big part of this event is purchasing gifts and gift cards so each of our 60 grads receive something. The funds are used from the ptsa held class account - these funds are given from ptsa to the individual class account for these seniors and then used by the sgn committee to provide everything needed for the night. Looking online I see that many SGN's are still doing this, but my treasurer has brought up IRS issues saying we can lose our non profit status if we continue doing this. Anyone have a straight forward perspective on this?

Asked by Anonymous



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