We offer the teachers/classes the option of choosing a theme basket to do for our silent auction in the spring. They are actually in their own area. The parents are fully aware that the monies raised from those baskets goes right back to the classroom for supplies, etc. We take in the money, then write each teacher a check that is deposited into their school account. Then when they purchase items for their classroom, they submit the documentation to the school's office manager and she reimburses them from their school account. We have documentation (the bid sheet with the teacher's name, contents of basket, worth and actual winning bid) for our records. So far, it's worked out well.
Hope this helps,
Holly This email address is being protected from spambots. You need JavaScript enabled to view it.
You didn't mention if your PTO is a 501c3, but I don't think the IRS would not like your approach. It really doesn't matter how the money was raised, the issue is that you give the teachers money up front. The IRS wants a 501c3 to be able to verify that any disbursement was spent in accordance with the organization's purpose. Technically, if you don't have receipts, you don't have proof the money was spent on educational supplies.
If you want a hybrid approach, you could deposit all the proceeds into the PTO's account, but keep track of how much each teacher's basket earned. Let the teacher know how much she has to spend, and then reimburse her when she has turned in receipts totalling the amount of her allocation. You'd have the receipts for your files, and the teacher still gets her money.
Personally, I would consider changing the paradigm altogether and instead allocate the same amount to each teacher regardless of their basket's proceeds. There are so many variables that would affect how much a particular basket earns, that the kids in one class could really lose out through not fault of their own.
"This year, because teachers thought the PTO kept the money, we gave them checks for their baskets."
Forgive me, I'm a bit lost. Did you hand a check to the teacher made out to the teacher? We give our teachers money to buy classroom supplies but every teacher gets the same amount regardless of how much a class item brings in. For example, we budget $200 for each teacher's classroom supplies. They submit a receipt and are reimbursed so, in essence, yes, we see what they are spending the money on. We have auction items for each classroom (art projects, not baskets) and the money raised from those art projects goes into one big "kitty". Then, our budget is planned according to what we make.
SHC
I have a question: We had a silent auction on class baskets with the money going to the teachers for the class. In the past, the money has been given to the school, into an account for the teachers to use. T
This year, because teachers thought the PTO kept the money, we gave them checks for their baskets. Now we are being told to track the teachers expenses to verify the money was spent on the class. If the supplies for the baskets were donated by parents and the bid money was donated to purchase a basket, do the teachers really need to verify their expenses? What is our obligation as a PTO? We simply collected the basket money and distributed to teachers? Should we have just given the teachers the money and not ran it through the PTO?
I am looking for suggestions to make this work smoother next year!!!
Thanks for any advise.
