Hi there,

As a PTA, we put a line item in our budget for our Flag Day celebration to give flowers to the person hired to run it. We also give small gifts (under $5) to our new incoming board members and outgoing board members that donate countless hours. We are getting a lot of pushback from our new treasurer that we are not allowed to give anything to volunteers... Can you clarify please? If there is a rule to explain please state. Thank you!

Of course you may.
What are the qualifications of your treasurer? Who does the books?
The object of a not for profit is to spend as much as possible on the actual specific reason for the organization. If you were to be audited, the concern would be 'top heavy' admin expenses, but I assure you, $5 gifts for hard working volunteers is worth every penny many times over, and is allowed by the IRS.
Countless 501c3's lavish far more on things like board dinners, etc.

As a PTA member, (teacher), I would expect the gifts to come from the staff at the school to thank the PTA. The PTA should not have to buy gifts when they have spent their time and energy on earning money for the school. Do you have a teacher liaison at the school?