Question: Advice on changing from a PTA to PTO

First can we use our exsisting PTA EIN instead of applying for a new one when we change from a PTA to a PTO? Second question is our bylaws state that at the time of dissolving our PTA all assets belong to the Missouri PTA. We have over 7k in our account this summer do we have to spend that to keep it? Can we create a PTO and vote to donate it to that non-profit then desolve the PTA? Thanks for the help.

Asked by ChrisFord

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Answers:

Community Advice

Jherna62 writes:
do we have to pay to be a PTO member and how much it cost for member

Community Advice

Jherna62 writes:
no, I need more clarificaton I am new in this i dont know anything please help me

Advice from PTO Today

Craig writes:
You can keep your existing EIN, but it probably would be cleaner to create a new one, especially if you'll be donating the money as you describe. Establishing a new EIN draws a line between the old organization and the new organization -- it may help prevent disputes about what belongs to the state PTA and what belongs to the new PTO.

As far as donating the money to the new PTO, it's a grey area that the IRS hasn't clarified for us. The law allows a 501c3 to donate to another 501c3. When you receive 501c3 status, that status is retroactive to your start date (or incorporation date if you incorporate). If your group does become 501c3, the donation probably is OK. But as I said, we haven't gotten confirmation of that from the IRS. On the other hand, there are more clear options. Schools automatically have 501c3 status (other than for-profit schools), so you could donate the money to the school before taking a disband vote.

Advice from PTO Today

Craig writes:
Jherna62 – Parent groups fall into two major categories. PTAs are members of the National PTA. They typically pay dues to state and local organizations, and their rules and bylaws are in large part determined by the national or state organization. Most parent groups are independent—they set their own rules and bylaws and don't belong to a state or national organization. Independent parent groups go by lots of names, but PTO is by far the most common. Check out the article PTO vs. PTA: What's the Difference? for more detailed information. You might also be interested in How To Start a PTO.

PTO Today provides information and services to both PTOs and PTAs. Most of what we provide is free. Check out the Topics A to Z page for a list of topic pages where you can find helpful resources.

Good luck!