Question: tax exempt status

At what point should we apply for this. We are a new PTO starting up and will start our first fundraiser next fall with the start up of school so we have no funds right now. Is this something that can be held off until we start holding fundraisers or is it something we need to be looking at now?

Asked by j_wright1976@hotmail.com

Answers:

Advice from PTO Today

Craig writes:
You don't need to worry about it yet. You have 27 months from your start-up date to apply for tax-exempt status, and the status will be retroactive to your start date. You'll be applying to be recognized as a public charity under section 501(c)(3) of the federal tax code. One things: If you're going to incorporate your group, do that first. The IRS considers your date of incorporation to be your start-up date. Thus, if you file for 501(c)(3) status first then incorporate, you would actually have to refile. Our Bylaws and Nonprofit page has some resources that may be helpful as you progress through the process of organizing your group. Good luck!