Several of you are asking me for specifics on what my group filled out, what forms we used when we finalized the 501(c)(3) process last year. I am not an accountant; however, to save a few dozen individual emails, here is a record of exactly WHAT we submitted, question by question; oftentimes what the IRS rep instructed me to write down.
(It might be easier for you to use this if you copy it and then paste it into a document.)
(Sorry, Tim, it’s going to be long.)
We sent in:
Form 8718 with a check for $500
Form 872-C
Form 1023 (pages 1-9) – no schedules
Attachments – Membership Form & Signed Constitution/Bylaws
Form 1023
Note – I had all the text saved in Word and a handwritten copy of the forms with answers penciled in. Then I sat down and used the “fill in†version of the IRS forms to complete it with a computer. You can’t save it unless you have the paid version of Adobe, but you can print it. (Or maybe you write neater than I do and just want to do it by hand!)
Answers below are OUR answers. I supposed most of it will be similar for many of you. However you need to decide what to put where based on your circumstances.
Part I [Most of this is pretty obvious. Be sure in question 4, the answer corresponds with your what’s in your by-laws.]
Part II – (1-4b) Suggest typing the narrative in Word until you get it as you like it, then cut and paste it in. (You could also do it as an attachment.) It’s too long to type here, but I’ve listed a synopsis of what WE put:
1 Listed each of the following with a short paragraph describing
* Coordinating Volunteer Participation to Support School Programs (30%)
* Hosting extra-curricular activities that support family involvement (25%)
* Supporting school activities and increasing school spirit (20%)
* Raising funds for supplemental services, equipment, and supplies (20%)
* Supporting the school administration. (5%)
2.
*Fall Fundraiser (catalog sales) 85-95% – note they called me to ask what this meant
*Spring event (carnival/auction/games) – family event
*Membership fees (token amount only - $3 per family per year)
3. Wrote a paragraph about the Fundraising committee and it’s plans.
4c No
4d No
5 No, Yes, The organization exists to support {school name}
6 Yes, The only organization with which it would be involved is {school name}, which is tax exempt, but not a 501(c)(3). The PTO performs services and fundraisings, and, of course, utilizes school facilities for school events.
7 No – No, however, our records are available to the school or parents, if requested.
8 Only asset would be a checking account to hold PTO funds
9 No
10 No, No
11 Yes
11a Any family with a child at [school name] may join for [$ amount] per family per year. Membership fees for teachers and staff are waived.
11b The PTO sends flyers home to parents and announces membership opportunity at school events.
11c The primary benefit is the knowledge that the family has made a commitment to serving the school by being part of the PTO. Members do receive a free student directory, available to others for a $3 purchase price.
12a N/A
12 b Yes. All benefits and services are directed to the school and students (not just PTO members). However, our programs do not generally extend beyond the school.
13 No
14 No
Attachment – included copy of our membership form labeled as an attachment for 11b.
Part III
1 Yes (note – if your answer is “no†you need to answer 2-6. I think common sense answers will get you by)
7 No
8 skip
9 h (NOTE – IRS told me this was the one PTOs should use)
10 Depending on if you’ve been around more than 8 months, you might put
“No†and skip 11-14. In our case, IRS had me fill out:
10 Yes, Advanced ruling,
11 n/a.
12 skip
13 skip
14 “no†to all
Part IV
I did a very simple 3 year budget (Revenue & Expenses), wrote in the years and “see attached†in each column. Included it as an attachment
Part V
[All we had is cash. So I just put our current checking balance on line 1 and 11. Zero Liabilities. Total same as line 1]
Mistakes we made/corrections needed
1)“Month annual accounting period ends†did not match our fiscal year in Constitution (fixed, re-sent page)
2)They needed “catalog sales†explained (explained on phone)
3)Dissolution clause in by-laws said if PTO disbanded all assets would go to the school. Did not say what would happen if SCHOOL ceased to exist. IRS has some boilerplate language they want used. We had to send an “agreement to amend†signed by two board members that we would amend the constitution at the next general meeting
4)We signed the last page (not a blank page) of our constitution/bylaws. Technically, these are two documents, so we signed the Bylaws, but not the constitution. IRS had us send a statement signed by two board members that both the constitution and bylaws provided with the application were adopted on XYZ date.
The IRS was really great. Once they started reviewing it, things went very quickly. A couple of calls as they found things wrong. They’d tell me exactly what to do to fix it, fax me wording to use, etc.
One more time, I’m not attempting to dispense accounting advice. I’m merely providing an example of what we did. Good luck to all of you – it wasn’t that bad!
Joy
