Saturday, October 9, 2010

Providing In-Unit Discounts For Members?

Is there any prohibition against a PTA giving a discount to members for events such as a carnival or dinner or on the purchase price of items such as the student directory? 

No, unless the price charged to the member is less than the cost incurred by the PTA in providing the event or item.  For example, if you are selling tee shirts that cost the PTA $5.00 each, you can sell them to your members at a lower price than the price for non-members.  However if you charge your members less than the $5.00 cost, the IRS would say that this is an inappropriate benefit for your members, and at least theoretically your tax exempt status might be at risk.