I would appreciate some advice on the 501c3 status. I am beginning my second year as treasurer. Everything that came up about anything to do with taxes last year, we were told that we were tax exempt because we were affliated with the school. I have came to realize that it is not quite that simple. I will just say that I believe everyone who has been involved with our PTO really thought that everything was was operating as it should. However, after realizing what I have, I can't figure out how it has not been "caught" before now. It was actually discovered by accident because of a large contest winning. We are just parents trying to do good things for our students and school. My understanding is that if a PTO raises more than $5,000 per year, then that organization has to "request" tax exemption. I have discovered that our PTO has never even applied for a EIN number. The best we can figure out, the Tax ID number on the checking account is someone's Social Security #. ??????? And yes, this account has earned interest for at least 9 years with that interest being report to someone's SS #. Anyway, our PTO usually raises between $15,000 and $20,000 a year. From all the info I can gather, our organization should have applied for the 501c3 status years and years ago. I feel like this is "over my head", but I am going to try to work thru this process. A very nice accountant has agreed to help us with this process for less than $200. His wife is a teacher and he says he wants to do this for us because he knows how things are with the schools. It has been suggested that we try to get a lawyer also. Would those that have been thru this process recommend that? We would just like to get everything in order and "legal".

The more I read about this, the more confused I become. Should we or should we not be incorportated? Is it really necessary to be a 501c3? I say at this point I don't see how we can not go thru with this, but like I said, this is over my head and I may be missing something. I have decided that I have gotten involved in a mess. hahahaha

Also has anybody been in this situation where the PTO has operated for probably 30 years without ever going thru this process. I'm satisfied the gross receipts didn't hit the $5,000 thresold until about 1/2 that time, but still, I'm worried about going thru this process and being denied and having to pay penalties. Can I be held personally libel for any of this stuff. You know, mom's always have to have something to worry about. hahahaha

I have seen the PTO Start-Up ToolKit on this site. I wonder if it would be helpful in or situation or if we are way beyond any tool kit. hahaha Why can't volunteering just be simple and enjoyable??????

Sorry for the book, any advice would be greatly appreciated.