Advice from PTO Today

Craig writes:
Yes, but once you're incorporated it's important that you take the next step and file for 501c3 tax-exempt status. You have 27 months to apply, and your 501c3 status, once approved, will be retroactive to your incorporation date.

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Community Advice

lphilley writes:
Confused. If PTO's can work under the school's exempt status, then why bother obtaining one when the school's done all the foot work. Lot's to think about. Thanks for your reply.

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Advice from PTO Today

Craig writes:
The answer is control. If you operate under the school's tax exempt status, you're operating as a committee of the school rather than as an independent organization. All of the money you raise belongs to the school, not the PTO. If the school decides it needs your field trip fund to buy janitorial supplies, you have little say. If the principal decides he should appoint the president of the PTO and bypass elections, he can do that. etc. Also, most school districts have many rules about how money can be spent. As an independent organization you might be able to fill in the gaps and be more flexible. As a committee of the school, those rules govern how you operate.

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Community Advice

lphilley writes:
It all makes sense. So, since the PTO is recognized as an independent organization and the school doesn't recognize them as being a committee, does this mean the PTO is not tax exempt?

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