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Financial Resource Management
Cash Management, Investments, and Debt Management
Last Updated
May 24, 2008
May 24, 2008uote>
Attorney General's Office, Division of Public Charities
Tax Deductible Donations to Schools: Schools are legitimate tax deductible donations. Be advised it is a good practice to acknowledge all donations. The process is as follows:
- School committee must publicly accept all gifts, grants, and donations in order to expend and make them tax deductible. An efficient means of handling these is to have a monthly memorandum to the school Committee of all donations (cash, goods, or services) that are received by any member of the school district. Each item must have a value provided by the donor or by the most informed (appraiser, catalog search, receipts).
- A letter from the School Business Official referencing the donation, value of the donation and the date accepted must be sent to the donor - See MASBO Best Practices Section
- Anonymous donors: Occasionally donors wish to remain anonymous. They should communicate directly with the business administrator on his or her wishes for the gift and the terms of remaining anonymous. No one other than the Business Administrator and your administrative assistant should know or be informed of the donor. All correspondence should be marked confidential and kept as secure and private as possible.
- The Business Administrator is responsible for enforcing and honoring the donor's wishes. Therefore, take great care to consider when you will set up separate donation accounts.
- You should require correspondence with all donations and keep it in the account file to help determine that expenditures are according to the gift or to assist in segregating commingled funds when you have a request from the donor if the money was spent.
Tax Identification Numbers
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