Question: Multiply Questions

What is our rights in funds and how we can spend? Does our school have the right to tell us what we can spend our funds on? How do we find out our exemption status, or if we are a dependent or independent group?

Asked by Anonymous

Answers:

Advice from PTO Today

Rose H writes:
It seems like the first thing you should do is try to find if any bylaws had every been written for your group. Within the bylaws, you would be able to see how the group was formed and if it is set up as an independent parent group or as part of the school.

This would help you determine what the relationship is with the school in terms of spending. If you are an independent group, your best bet is to work with the school, foster a good working relationship, but know your group has final say on spending.

A couple things on your group's status. If it was set up as an independent group, it may or may not be set up as a 501c(3) group, which gives it official tax-exempt status.

Also, somewhere in your group's paperwork, likely with the treasurer's files, would be a reference to an EIN, or Employer Identification Number, which would have been filed with the IRS. You group would have likely needed an EIN to set up a bank account. (Although sometimes groups use the school's EIN).

For general questions about tax-exempt status or tax ID number, EIN, you can contact the IRS at http://www.irs.gov/Charities-&-Non-Profits/Exempt-Organizations-Select-Check, or at this phone #:(877) 829-5500.