Deductibility for Contributions
Made to PTAs

PTA members and contributors often assume that any payment they make to a PTA in conjunction with a fundraising event is tax-deductible. However, rules and limitations exist for the deductibility of such payments.

Quid Pro Quo Contributions

IRS regulations state that charities must provide a written disclosure statement to a donor for a quid pro quo contribution of more than $75. This type of contribution is a payment made partly as a contribution and partly in exchange for goods and/or services. The disclosure statement must disclose the amount of the payment and give a description and good faith estimate of the value of the goods and/or services received in exchange for a portion of the payment.

Example: If a PTA holds a fundraising event that provides a meal or some tangible item in return for the purchase of a ticket, then the portion of the ticket that is tax-deductible is the ticket price less the fair market value of the meal or item received.

Charitable Contributions of Cash

A donor claiming a monetary charitable contribution deduction of any amount cannot take the income tax deduction unless he or she has a cancelled check, bank record, or acknowledgement from the charitable organization. The acknowledgement correspondence must:

  • Include the name of the charitable association (name of PTA)
  • Include the amount of money donated
  • Include the date of the contribution
  • State whether any goods or services were received in return for the contribution
  • Describe the goods or services received, with the fair market value of same
  • Be received by the donor prior to the due date of the donor’s tax return

Out-of-pocket volunteer expenses can qualify for a charitable deduction but are subject to the same substantiation requirements if the expenses exceed the $250 threshold. The volunteer must maintain records to substantiate the amount of the expenses, and obtain a statement from the organization describing the service provided by the volunteer and indicating whether or not any goods or services were provided to the volunteer in return.