Question: Establish PTO with PTA funds

We are considering changing from a PTA to a PTO and do not want to use up all of the funds in our PTA account. We hope to be able to transfer the funds from one to the other once the PTO has received the 501(c)3 designation. Our question is whether or not we can use PTA funds to pay for the $850 IRS fee to establish non-profit status for the PTO? This question is assuming members will vote on the expense.

Asked by Anonymous

Answers:

Advice from PTO Today

Craig writes:
Sorry, I don't have any definitive answer for that. From the IRS point of view you must spend your money in support of your mission. If helping to fund a new PTO fits with your mission, the IRS would allow it. I can't speak to any state or PTA rules.