If I am reading this correctly, you have some parents who want to make a donation to the PTO, which in turn would donate the money to the school to pay the salarey of the teacher. The parents could make the donation directly to the school, without involving the PTO. There's no reason I see for getting the PTO involved, because I doubt your PTO wants to be the employer. There maybe limitations on directing a large donation to a 501c3 for a specific purpose, but that's a question for the IRS.

We have a small parent group that wants to buy a teacher to help reduce class room size. They want to use our non-prof status and deposit the money in the PTO account until it is given to the school district. What are the consequences?