I've been treasurer for a couple PTOs that offer scholarships. Generally, the concern is that the PTO and/or its officers not be involved in the selection. One PTO had the principal decide (and confirm financial hardship); another has scholarships awarded by the guidance counselors.

I'm not sure how similar this is but...
We have an on-campus summer program that we offered 2 one-week tuition gift certificates for at our annual auction. The Foundation considered it an auction item "reserve price" and we paid the program directly. As far as I am aware, a scholarship program is an accepted use of non-profit funds.

KAPeloquin wrote: Hey all! Our district has a summer school program that certain students are recommended for. Every year the principal approaches us about helping pay for some students who would truly benefit from summer school, but are unable to afford it. We are discussing the possibility to create a scholarship fund for this purpose. We will not use our PTO funds to contribute to the fund, but various small events or donations throughout the year. My question is, is this allowed as a 501(3)(c)/PTO? Has anyone ever done this before that can offer some advice to make sure we set it up correctly? Thanks so much!

Hey all! Our district has a summer school program that certain students are recommended for. Every year the principal approaches us about helping pay for some students who would truly benefit from summer school, but are unable to afford it. We are discussing the possibility to create a scholarship fund for this purpose. We will not use our PTO funds to contribute to the fund, but various small events or donations throughout the year. My question is, is this allowed as a 501(3)(c)/PTO? Has anyone ever done this before that can offer some advice to make sure we set it up correctly? Thanks so much!