Paying School Staff For a PTA Event

QUESTION: 

Our PTSA would like to “sponsor” an after school activity for the children in our school, using a school staff who would be paid for her time.  Can we do that and what responsibilities do we incur?

 

ANSWER: 

If this is truly a PTA activity, then at least one and preferably more PTA volunteers should be present to supervise, collect any fees being charged by participants, etc.  You would also need to review your PTA’s 1023 or 1024 form to make sure that the activity is within the scope of the activities described there; if not, you will need to file an amended 1023 or 1024.  The PTA could contract with the person conducting the activity using a personal service contract, but would want to be sure that the person truly is an independent contractor.  If the IRS later determines that the staff member is actually an employee of the PTA, the PTA would be liable for withheld taxes, Social Security and other employer taxes, and likely would have to pay penalties as well.  A better approach would be to grant the funds to the school district which could then have a supplemental contract with the staff person, who would clearly be the school district’s employee and not the PTA’s.  Finally you would be wise to check with your insurance carrier to make sure the event is covered. 

 

In short, this question illustrates why it’s important for your whole board to attend an upcoming PTA & the Law Workshop. 

Can we have student memberships?

QUESTION: 

Our PTSA would like to have student memberships—is this okay?  Can the students sign themselves up or should we have a parent sign them up?  Can we have a special membership rate for students that is less than the rate for adult members? 

 

ANSWER:  

Yes, student members are both permissible and a great way to make students part of the support in the school.  The students should be signed up by a parent or guardian to avoid any problem, and a lower rate is permissible as long as the rate charged is sufficient to cover the national, state and (where applicable) council membership service fees. 

Reimbursing for travel/food expenses to PTA events?

QUESTION: 

When our PTA sends representatives to state events such as Convention or Legislative Assembly, is it okay to reimburse them for their travel and/or food expenses?  Also, what about reimbursement for local activities, such as the fuel costs incurred in running PTA errands? 

 

ANSWER: 

Whether to reimburse for expenses such as meals or mileage while traveling to a state meeting or driving around the community on PTA business is a local decision that should be addressed in the local unit’s standing rules.  The only potential limitation would be if the reimbursement were unreasonably generous (dinner at El Gaucho, for example) then the IRS might consider it an “inurement” or benefit to an individual rather than a legitimate expense.  We recommend that any reimbursement be supported by a receipt, or in the case of mileage a log or some independent evidence (such as a Google Maps or MapQuest printout) of how many miles were reasonably necessary.  If the PTA decides to reimburse these kinds of expenses, but some individuals don’t want to be reimbursed, we recommend that you ask them to fill out a reimbursement request and then donate the reimbursement funds back to the PTA.  That way the actual cost of doing business will be documented and future year’s budgets can reflect those actual costs.  Keep in mind that not everyone is in a position to forego reimbursement.