$1500 sounds like a lot to me, when you collected that money to benefit the children and the school.

Our PTO also did token donations to scholarship funds for two kids whose mothers died. I think it fits our "exempt purpose" as far as the IRS goes, that we supported the kids -- not so much the family.

I've seen other posts here about how people who are concerned can help run a separate fundraiser specifically for that family -- maybe have it at the school -- but not use PTO funds for it.

The legal question could depend on your bylaws, which should identify the purposes of the PTO and might have some general guidance on what you can spend money on. But probably it would be legal to donate the money as along as your procedures for spending are followed.

Whether you should do it might be a tougher question. Can you afford to donate that much money to any family with a child who gets seriously ill? Will a family expect some money if their child breaks an arm? What will parents who donated money expecting it to buy something for the entire school think about it going to one family?

We've wrestled with this twice in the last few years, and we've made token donations -- not enough to impact our budget but enough to show we care and we're thinking about the family. If $1,500 fits that category for your PTO, well, good for you!

I live in Indiana and we have a family that has 6 children and the father has cancer. He is now in hospice and his family is in need. Can the PTO legally donate money to the family? The board president wants to donate $1500 to this family. Thanks for the help.