Can PTA receive a donation which is restricted to a specific activity?
Donations can be made for specific, restricted purposes. However, the donation cannot result in more than an incidental benefit to the donor. For example, the donor’s child cannot benefit any more than a larger number of children similarly situated. If you give money to the music program in which a large number of children participate and will benefit from the donation, that donation is then tax deductible. If you give money to the music program just to buy a violin for your own child, then the donation is not tax deductible. If the PTA accepts money for a restricted program, the PTA must spend the money only on that program. It cannot be spent on any other program without written direction from the donor.
