Hi Southernbelle-
I asked our 501(c)(3) resident experts here and gjcoram is correct in the assumption that it is not legal to provide letters saying the deductions are tax deductible because they aren't.
Donations to the school are tax-deductible, as long as it's not a for-profit school. So they'd be better off putting the money in a school account.

If your parent group is interested in becoming its own non-profit here's an article that will walk you through that process (it's not as difficult as you might think):
www.ptotoday.com/pto-today-articles/article/394-501c3-for-ptos

~Lisa


Follow us on Twitter .
Connect with us on Facebook .

If you are not a 501(c)(3) tax-exempt organization, then wouldn't it be tax fraud to send a letter saying that the donations are tax-deductible?

I wouldn't do it. But, I'd work on becoming 501(c)(3).

We arent a tax-exempt PTO. Our principal does personal fund raising and wants to put the money in our PTO account and wants us to give letters saying the donations are tax deductible. Many in our small community feel her generous funding really helps the school and we should do it, but I don't know if it is legal. They have done this for years in the past. We have our own EIN because the county board doesn't let PTO's open accounts with the school's number. Should we do it?