Supporting Families in Need with Gift Cards

Washington State PTA
A frequent question is whether it is acceptable for PTAs to collect and distribute gift cards for families in need, or to accept donations of gift cards to purchase necessities for children or families in need. Although it is common for PTAs to involve themselves with activities in their community that help families meet basic needs, there are some important considerations before a PTA embarks on such a program. Here are some things PTAs should know:

PTA funds must be spent on PTA purposes
Check to make sure that new activities are aligned with the PTA’s purposes. Each PTA submitted an IRS Form 1023 or an IRS Form 1024 when they applied for nonprofit status (501 c 3 or 501 c 4).  On that form, the PTA told the IRS everything they would be doing.  Review these forms to ensure new programs are in alignment.  A PTA’s standing rules state who the PTA serves.  For example, “ABC PTA serves the students, staff, and families of ABC School.”

PTA funds must serve a “class” or group of people, not individuals.
Nonprofits are organized for the benefit of the public, not individuals, and they must serve a charitable class.  Giving funds to individuals endangers a PTA’s nonprofit status. For example, PTA funds may not be spent to help a family after a job loss, fire, or other emergency.  If a PTA were to notice that a family was going without warm winter coats, they could not give that family gift cards to purchase coats. However, if a PTA were to note that many students needed new coats, they could set up a program through which any student at the school could obtain a new coat or a gift card for a new coat, regardless of whether or not they or their family are members of the PTA.

Respect Privacy
A PTA should avoid getting involved with directly identifying families in need. Anonymity is crucial; the confidentiality of families in the community is paramount.  For this reason, it is often preferable for a PTA to work with a school counselor or nurse, or to donate funds or gift cards to another charity or nonprofit that serves local families in need. A cause may be very important, but PTA may not be best positioned to do the work.

Know District Policy
Some school districts have policies that prevent school staff from handling donated gift cards, and without staff participation, the PTA may be left with no way to determine who the families in need are. Make sure that you are aware of all district policies before embarking on a program of this nature.

Gift Cards are Cash
It is not recommended that PTAs purchase gift cards for this type of program with PTA funds; it is preferable to receive gift cards that are used or passed on as needs arise.  This is because the board is responsible to ensure that PTA funds are spent on PTA purposes, and there is no way to ensure that gift cards are used for their intended purpose once they’ve been given out.

Final Considerations
PTAs must also create a clear, written process for handling gift cards. Include the process for receiving and logging a gift card, where gift cards are stored, who has access to the cards, and the process for distributing cards or checking out a card and submitting receipts.

Gift card donations should be handled like cash donations. The PTA should give the donor a cash receipt, must keep a record of each donation, and track the funds as donation income in bookkeeping.  Best practice would be to track gift cards as a separate, restricted fund, and to include this report in the monthly financial reports.

Likewise, when cards are distributed, those funds must also appear in the PTA bookkeeping.  If the PTA is using donated gift cards to purchase items that are then distributed, there should also be a system in place to ensure that all items purchased are accounted for; for example, ten coats purchased and ten coats distributed to families in need.

Published by Washington State PTA.
originally posted April 21, 2020; edited November 16, 2021.

Protecting Disability Benefits:
What to Know About Gifts

Seattle Council PTSA
Local PTA’s should be aware of the risks associated for people with disabilities in accepting certain monetary gifts. Federal benefits that have income and asset limits such as Medicaid, SSI, housing, and other programs can be affected by receiving certain gifts. Best practice is always to ask what a person can receive before giving.

A resource to point families with questions to:
National Association of Councils on Developmental Disabilities (NACCD) Protecting Your Benefits: What to Know About Accepting Gifts

School Districts Scramble Over New Sales Tax

Seattle Times, Education Lab
School districts are worried the state’s new expanded sales tax could take an unexpected bite out of their already tight budgets. The late-session law went into effect Oct. 1, and expands the retail sales tax to services like temporary staff, information technology services and live presentations. The expanded sales tax is expected to generate about $1.1 billion from 2025 to 2027, according to the bill’s fiscal note.

Your PTA & the New Sales Tax

You can find a list of the services newly covered by the tax on the Washington State Department of Revenue (DOR) website.

The one most likely to be relevant to PTAs is the inclusion of “live presentations.” The new law defines “live presentations” as “including, but not limited to, lectures, seminars, workshops, or courses where participants attend either in person or via internet or telecommunications equipment that allows audience members and the presenter or instructor to give, receive, and discuss information with each other in real time.” This may have implications for those of you who run after school enrichment programs or classes, invite paid speakers to your events, or have paid events with speakers or workshops (note that this is not an exhaustive list of PTA programs or events that may be subject to sales tax). The DOR website has created interim guidance specific to live presentations as they work through the implications of the law.

As you read through this DOR guidance, you may have questions. Local PTAs need to reach out individually to the DOR for guidance and tax rulings. You can contact the DOR at rulings@dor.wa.gov. Please note that it can take several weeks to hear back with an official ruling. When you are emailing the DOR, be clear and specific with your questions. If you get answers that you feel aren’t clear enough, you can respond to the DOR’s reply with additional questions, and they will get back to you with more clarification. 

In cases where PTAs work with vendors or contractors but are not themselves involved in collecting or disbursing payments, it is the vendor’s or contractor’s responsibility to determine how or whether this new legislation applies to them and to get their own tax rulings. PTAs should not be contacting the DOR on anyone else’s behalf. 

Remember to review the 2025–26 Standards of Affiliation Agreement (SOA) for local PTA’s at every board meeting. In addition to the items listed on the SOA tracking sheet, local PTAs shall uphold the ethics, policies, and principles of PTA and shall not take positions in conflict with adopted WSPTA or National PTA positions, resolutions, or issues, or the values, mission, vision, and purposes of PTA. For assistance with this checklist or help understanding any of the requirements, please contact treasurer@scptsa.org or secretary@scptsa.org.

Remember to regularly check the WSPTA calendar for upcoming trainings and events. PTA and the Law, a required class for at least one officer (and recommended for the whole Board), will be offered at least once a month throughout the year.