Question: Do we wait until the end of the year to incorporate and file for a 501c3 or do it now?

I am the treasurer for a middle school PTO. We determined about 1 month ago that we had never filed any paper work to become a 501c3 organization. As far as we can put together, they have an EIN number, and that is what is being used for banking purposes. Our president went ahead and filed the 990N this year. At our March meeting it was decided that we should incorporate and file the 501c3 paper work under the new organization and a new EIN. My question is do we wait to do this until the end of our fiscal year, or should we just draw a line in the sand and do it now. We have our largest fundraising event and an Honor's picnic yet to come this year. Thank you in advanc

Asked by Michmomma76

Answers:

Advice from PTO Today

Craig writes:
Good for your group that you're making this step. There's no reason I can think of to wait until the end of your fiscal year, other than tackling it at a time when you're not as busy with other things. You can set whatever dates you like for your fiscal year when you incorporate, and you're allowed to estimate the financial information on form 1023, the application for 501c3, if you don't have final numbers. By the way, it's important to incorporate first, then file for 501c3 -- not the other way around. The IRS considers you a new organization as of the date of your incorporation, so you would have to refile form 1023 if you incorporate after getting 501c3 approval. Also, if you have an existing EIN, you don't really need to get a new one.