How is electronic scrip different from paper scrip in relation to IRS guidelines?
The programs are basically the same, the means by which they are conducted is different. While the income from electronic scrip is from a business and regularly carried on, as an approved PTA fund raiser, the proceeds are related to the PTA’s exempt purpose. If the level of effort on the part of the PTA in raising funds is insignificant and the PTA involvement in holding the fund raiser is conducted by volunteers, then there should be no unrelated business income. It is recommended that when participating in the scrip program, the PTA have its taxes completed by a professional tax accountant. This question should be posed to the tax accountant completing the IRS Form 990 for the unit.
