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Holding a Carnival where the proceeds go to another 501(c)3
Please help! I am with a local PTA in NJ and we seem to be having an issue. We hold a "Make a Difference" Carnival every October and I am under the assumption that the proceeds are supposed to go to another 501(c)3. We also have a "Family in Need" fund. This is supposed to go to a family in need, correct? We have had a tragedy with a PTA member and it seems that alot of people are on the bandwagon to give the carnival proceeds to this family. This is not allowed, correct? I have been searching and searching online for an answer to this and am coming up empty. Any help would be wonderful and any links where I can print out the facts would be great!
Thanks so much!
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Replies to This Discussion
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Permalink Reply by Carissa Dollar on -
Have you talked to anyone in your State PTA office?
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Permalink Reply by Lexa Skowrenski on -
I actually called the IRS on this. We cannot give to anyone/anything that is outside of our Articles of which were stated on the application. We fall under NJPTA so we go by their application and it states "The organization is organized exclusively for the charitable, scientific, literary, or educational purposes within the meaning of Section 501c(3) of the Internal Revenue Code or corresponding section of any future Federal Tax Code (hereinafter “Internal Revenue Code”)."
Also,
No part of the net earnings of the organization shall insure to the benefit of, or be distributable to its members, directors, trustees, officers or other private persons except that the organization shall be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purposes set forth in Article II hereof.
So this means, no, we cannot give to an individual who is a member and will benefit outside of what the meaning of 501(c)3 is. We can give for low income, educational, distressed, etc...
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Permalink Reply by Lexa Skowrenski on
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I forgot....yes we may donate to another 501(c)3 as long as we keep adequate records of all the monies. And as Carissa stated in another post, do not put the monies for the charity in your PTA bank account, otherwise it is considered PTA income. Pub 4221-PC
The above post is in Pub 557 Ch 3 pg22 and pg 69
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Permalink Reply by Shirley L. on -
if you read the bylaws.. the pta is not allowed to give any money nor raise money to another non-profit. IT IS IN THE BY LAWS. or.. call your local state PTA if you are still in question.
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Permalink Reply by Monica Sanchez on -
Check with the NJ PTA offices. With the Texas PTA office, they have a program called "Texas PTA Emergency Needs Relief Fund" that a PTA Member can apply for that provides grants for members who fall on financial hardships because of illness, accidents or natural disasters. Chances are that the NJ PTA office may have a similar program or at the least be able to advise you on this.
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