Question: need for 501c3 status?

Our school is considering formalizing our parent organization with bylaws, mission & board. The current parent committee operates within the confines of the school's 501c3 status as well as the school's insurance liability policy. This has restricted some of the fundraising activities the group has considered, especially when alcohol was involved. Is it necessary to have a separate 501c3 status from the school? Or is it possible to stay within the school's tax exempt status & have a separate insurance policy for the parent organization. We are looking to have more operating flexbility. Thank you.

Asked by kbmagner

Answers:

Advice from PTO Today

Craig writes:
I checked with our insurance folks who say yes, you can purchase a policy to cover PTO activities, even if your PTO isn't independent from the school. If you do decide you need more independence, obtaining 501c3 status isn't as difficult as you might think. It does take time to compile the information you need for the application, but our PTO Startup Toolkit includes question-by-question instructions for filling it out. Also, here's a link with information about types of insurance coverage for PTOs.