Question: 501c3 - do we qualify

An answer to a previous question I had regarding should we be filing some return said to seek 501c3 status. We only bring in around $500 a year as we don't do fundraisers. If we purchase something, we pay taxes. Our money is mostly given directly to the school to purchase needed supplies. An answer to another question said the IRS wanted you to seek 501c3 status if you have at least $5000 coming in. What if it is much less than that?

Asked by Anonymous

Answers:

Advice from PTO Today

Rose H writes:
Hi there,
If you are an organization that will consistently be bringing in less than $5,000 a year in "gross receipts,'' then you would not have to apply.

If you go to this link at the IRS website, you'll find the explanation, which you may want to set aside for your records:

https://www.irs.gov/charities-non-profits/application-for-recognition-of-exemption

Hope that helps!
Rose