Advice from PTO Today

Rose H writes:
Hi kwalker4444

If you look at the IRS information page on 501(c)(3)s, it does show that a parent group would qualify as a "public charity," and not a "private foundation." We searched the frequently asked questions section of the IRS site on 501(c)(3)s and did not find an answer to your question. Our suggestion is to get in touch with the IRS to explain your oversight and find out how your status can be adjusted. We can't imagine that you'd be required to re-file as it was an obvious oversight on your part.

Here's the link for IRS contact information: https://www.irs.gov/charities-non-profits/about-irs-exempt-organizations



Here's the info from the IRS below that defines a "public charity."

A private foundation is any domestic or foreign organization described in section 501(c)(3) of the Internal Revenue Code except for an organization referred to in section 509(a)(1), (2), (3), or (4). In effect, the definition divides section 501(c)(3) organizations into two classes: private foundations and public charities.
Generally, organizations that are classified as public charities are those that
Are churches, hospitals, qualified medical research organizations affiliated with hospitals, schools, colleges and universities,
Have an active program of fundraising and receive contributions from many sources, including the general public, governmental agencies, corporations, private foundations or other public charities,
Receive income from the conduct of activities in furtherance of the organization’s exempt purposes, or
Actively function in a supporting relationship to one or more existing public charities.
Private foundations, in contrast, typically have a single major source of funding (usually gifts from one family or corporation rather than funding from many sources) and most have as their primary activity the making of grants to other charitable organizations and to individuals, rather than the direct operation of charitable programs.

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Community Advice

raynaroo writes:
Going through this as well. We did the same thing. In order to fix it, we have to file a form 8940 with a (gasp) $400 form user fee. Definitely not in our budget so we will have to file the 990-pf instead of the 990-n.

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