Non-Dues Revenue

PTAs may need non-dues revenue to carry out the programs that members want. Programs like e-scrip are popular non-dues revenue sources. They work by contributing a portion of the sale of a product or service to a particular charitable cause. The amount of the contribution is usually governed by the sales or the usage of product or service. The association must vote each year to be a part of the program.

E-commerce purchases are made through the Internet. PTAs can enter into agreements with companies whereby the companies return a percentage of member and nonmember purchases to PTAs as a contribution. PTAs also can be designated as recipients of charitable contributions whenever a customer makes a purchase with a local merchant or service provider (i.e., e-scrip).

When any type of agreement is formulated, a PTA should verify that the agreement is structured to protect the PTA’s tax-exempt status and does not compromise PTA policies. The agreement can be structured to avoid unrelated business income. The money received by PTAs should be accounted for as contributions on financial statements.

If a PTA has questions or is concerned that a program might violate or compromise PTA’s tax-exempt status, contact the district PTA or California State PTA.

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