As I understand things, if your group is not tax exempt you must charge tax...
Something like this is normally acceptible, under certain conditions...
Since your group is the non-profit organization, then selling items such as spirit wear, etc., is quite normal. Selling it for a certain group, such as the PE Department, is acceptible under certain conditions. Your group should maintain the funds, but can allocate the funds for a specific reason, such as the PE Department. We do this with one of our fundraisers where the funds are placed into a Technology Fund. The funds still "belong" to the PTO, and when the Principal wishes to purchase a technology related item he must present it at the committee meeting and a vote is taken to approve the use of the funds.
But the real question is whether you group has Bylaws and what they indicate regarding something like this. Overall I believe it would be ok, but if the PTO is going to handle this then they should handle all monies, meaning they are the ones that will be selling the items, and that the group will need to approve the use of those funds.
We have always gotton our gym uniforms from a local store in town.
Our gym teachers are proposing that the school sell thier own now and for a $4.00 per uniform profit to go back to the PE department. The school district cannot do it as a fundraiser so they are coming to us to do it.
We are not tax exempt.
Is this ethical? and can we sell them? I assume we will need to charge tax?
Val Kearns
MMS PTO
