Every year, we send the teachers a letter, letting them know, we will be giving them $100 in stipend funds. BUT, in order to recieve the funds, they must:

have a recipt(s) dated between Aug 15th 2008 and March 1st, 2009 and they must be turned in no later than March 15th, 2009 to be reimubursed.

any and all items purchased using the stipend funds must be used during the current school year (disposable type items) OR, if the teacher leaves the school or retires, items purchased must stay in our school.

Most teachers will turn in thier recipts, other don't bother with it.

Requiring receipts is a basic best practice from an accounting standpoint (and from the IRS). Never would we give money in advance and "hope" for receipts.

Sometimes a change goes easier if attributed to a 3rd party. Simply explain that you are trying to comply with accounting practices and IRS recommendations.

By the way - if you aren't reimbursing the teachers for expenses, then the funds are a gift, perhaps even income. I would bet district policies prohibit them from accepting cash gifts. And I'd imagine none of them want to claim that $100 as miscellanceous income on their tax return!

As a charitable non-profit, you are prohibited from allowing others to personally benefit (outside the scope of your mission). Providing classroom supplies fits your mission. Casually handing out $100 "gifts" to staff does not.

I would think that if you disuburse that much out at one time, even if to several teachers, it would need to be approved at a PTO meeting by the members to disburse such a large amount of funds. As a former treasurer, I would not want to be writing checks without a receipt, period....It is not much more work on the treasurer....Create a reimbursement request form and have the person requesting the reimbursement complete it and turn it in with the receipts. Then, and, only then, would I want to write that check. Sorry, but, if you aren't doing something along these lines, the treasurer is being put in a position she shouldn't be in....This has nothing at all to do with trusting your teachers, it is about keeping your books in order...it's really that simple...

Hi,
Our PTO allocates $100 to each full time teacher to spend on their classrooms. Currently, we give the check at the beginning of the year and hope for receipts (but don't get them all). We are considering reimbursing only after receiving receipts - but this will be a lot more work and does not indicate the trust and support we would like to offer the teachers who surely spend that much of their own money.

Are we at real risk if we do not have receipts for all that the teachers have spent? Do you have a suggestion?