Question: How do you determine the start up cost?
Our School is considering making the change from PTA to PTO. How do you determine the start up fee?
Asked by Normette
Answers:
Advice from PTO Today
Craig writes:If you're going to apply for tax-exempt status from the IRS and become a 501c3 charity (we recommend it), there's an $850 one-time application fee for most groups. Your state will charge a fee for filing incorporation papers, usually less than $100. Some groups hire an attorney to handle the paperwork on these two items, but you can do it yourself and many groups do. Our PTO Startup Toolkit includes question-by-question tips for filling out the 501c3 application (IRS form 1023). If you have to reprint letterhead or envelopes, that's an additional expense. Otherwise, all the systems you have in place from your PTA should transfer fairly seamlessly to your PTO.
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