Let’s consider the question of whether a PTA can require staff to be members in order to qualify for classroom grants. The short answer to that is NO, and requiring it would jeopardize the PTA’s tax-exemption.
Charging a fee (dues) to apply for or receive a charitable grant violates the IRS private benefit rules. Charitable funds must be distributed based on the needs of the community being benefited, which includes the school staff. Limiting grants only to paid members shifts the mission from serving the public good to providing monetary benefit to a subclass of dues-paying people. The IRS could argue that the organization’s net earnings are inuring to the private financial benefit of its members.
In addition to not requiring membership, grants should be awarded based on a written, objective policy. Staff should need to fill out an application stating what the item will be used for, cost, etc. The application should state that PTA membership is not required to apply or receive the grant. Receipts need to be submitted and retained by the PTA.
A PTA could offer other benefits to staff for becoming members. Examples could include recognition signs for their classroom, or access to member-only drawings or classes.
And don’t forget PTA member discounts offered by WSPTA and National PTA. Local PTAs can also build their own affinity program discounts with local vendors. As long as the benefits are low cost or are discounts, the IRS deems them “insubstantial”, so PTA membership dues are 100% deductible as a charitable contribution.
Wondering how this is different than a PTA requiring membership to be part of an afterschool enrichment program? Check out this WSPTA blog.