Question: Question on applying for tax exempt status

We are currently a PTA that has voted to change to a PTO at the end of the current school year, thinking that would be a good time to make a clean transition. Our plan is to take any remaining funds in the PTA account and "donate" them to the new PTO. In preparate for the new PTO, we have created bylaws and articles of association (we are not incorporating). We have a new EIN and are in the process of completing form 1023, which is where my question lies. Since the PTO is not technically operating yet, has no money, has done no fundraising, has not run any events, etc, how do we complete much of the info on the form? Do we just use info regarding the existing PTA activities? What about the balance sheet data? We have none. We want to make sure if get completed right, but are at a loss as to how to complete it for an organization that is not yet in operation. THanks.

Asked by threeeeput

Answers:

Advice from PTO Today

bblake writes:
What you are basically doing is forming a new organization. So all of your financial information will be projections forward for 2-3 years. You can base your PTO projections on your past PTA activities and financials.

Community Advice

kvgksg writes:
I had a very similar question...we too are converting. So for the entire application, do we treat all questions as if we did not previously exist? I understand the idea of using past financial information to base the answers to the projected income questions...but otherwise we should not include any information regarding our history? Thanks for your help! I just finished reading the Startup Toolkit, it appears that it will be very helpful!