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Tax deduction

11 years 8 months ago #162081 by MsSevilla
Replied by MsSevilla on topic Re:Tax deduction
As I understand it, 501 (c) 2's cannot collect contributions.

If you meant meant 501 (c) 3, then donations are fine.

If you don't have 501 (c) 3 status with the IRS, I wouldn't tell parents they can deduct their contributions. They'll need your EIN for their taxes and when the IRS takes a look at their deductions, will see that you're not on that "magic list" of non-profits. You could have a lot of angry parents come April 16th.

It would be well worth it to consult a CPA to see what your options are BEFORE you begin collecting donations.
11 years 8 months ago #162071 by Crystal
Tax deduction was created by Crystal
If I want to send home a letter to parents asking for donations to PTO and I Want to include that their donations are tax deductible can I do this even though we do not have 501 c 2 status? the letter would loook something like this... will they still be able to deduct their contribution using our tax ein number?

PTO donation today!
How Does the PTO Spend its Money?
· The PTO is proud to spend the majority of its money on transportation to field trips that provide our children with interesting and engaging experiences.
· We provide additional educational support by giving grants to teachers and staff, which they can use to buy supplemental materials for their classrooms.
· We pay for select “backpack mail”, the newsletter and the School Directory to help you stay informed and connected to our community.
· We also pay for equipment to keep the school updated, such as planting playground trees, buying playground equipment, and new technology for our teachers.
Where Does the PTO get its money?
Family donations and fundraisers provide the principle income to the PTO. All contributions are tax deductible. You can send a check to school with your child, in any amount, payable to “Thurston PTO.” An envelope is enclosed for your convenience. Simply fill out the form below. Receipts will be provided at your request.
How much should I donate? The PTO’s annual budget is around $20,000—about $50 per student. Our most reliable fundraiser will raise around $4000. The remaining $16,000 (or $35 per student) must be raised through donations and other fundraisers.
(Please detach bottom portion and return to your child’s teacher or the main office with your other materials)
Name: (please print) _______________________________________________________
Phone ________________________ e-mail address _____________________________
o I am donating o $ 35
o $ 50
o $ 75
o $100
o Other amount (please specify) _____________________
o Check here if you would like a receipt.
Please make checks payable to “Thurston PTO” with the phrase “PTO Donation” in the memo line. Place check with this form in an envelope addressed to the Thurston PTO and return it to your child’s teacher or the main office.
Thank you for supporting all our children!
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