Gift giving by a 501c3

[Formerly SK]

I'm the volunteer treasurer for my DD's school's PTO this year.  It's a 501c3 with annual revenue about 30K.  The question is, can funds raised be given away as gifts?  In the past, we've given $400 to the school district's educational foundation, as well as $50 gifts to each teacher (total of about $1500 for these).  Obviously the $400 is going towards education.  The teacher gifts are just cash with no strings (most likely used for the classroom but there's no evidence/receipt).  I just want to make sure we are being kosher with these gifts.

Thanks so much!

[mwcpa]

yes, you can raise funds and make "grants" (gifts as you call them) to individuals and the school.

if you provide a gift of 600 or more to any one person you may need to file a form 1099-misc to report such.

you should maintain details about the grants and you should do what you can to ensure the moneys are spent by the recipients in accordance with the grants purpose.

by mere example.

I work with an organization that amongst other things provides support to fund a medical program (underwriting the costs of some surgeries for a class of people).  They send representatives to the hospital periodically and are provided reports as to the cost of the surgery with as much detail as possible (not to violate any medical disclosure laws).

Due diligence, that is your requirement as a board member, make sure organization's assets are protected and having policies and procedures to check on grants is part of that.

[Formerly SK]

Thank you MWCPA!  I always appreciate your knowledge.