PTO Slave - to answer your question...

Yes, it seems to me you will just end up with a simple AOI and then a robust set of bylaws.

Traditionally the Constitution tells who your organization is, its basic policies, its purpose, etc. The bylaws list the rules by which your organization operates. But some groups have a hybrid version that puts all this in one document still called "The Bylaws".

It seems like that's what you'd want if you go with a bolier plate AOI just for filing purposes.

Note again - this is my opinion - we stopped before filed for incorporation when we found out we'd invalidate our 501(c)(3).

Tim's right - be careful. I've heard some Non Profit Lawyers and some accountants argue that organizations like PTO's are non-profits by definition because of their roles with the school, and thus it's not necessary to file the 501(c)(3) paperwork. In the same room, I've seen an IRS supervisor shake his head in disagreement and say that is NOT the way the IRS sees it: if you don't file, you are not a non-profit and contributions to your organizations are not deductable for donors.

So the bottom line is: if for some reason (heaven forbid) you took this issue through the courts and had a good non-profit lawyer, maybe the argument would hold up, then again maybe not.

For most of us, we deal one on one with the IRS and have no intention of fighting this issue up through the legal system. So it seems safer to follow the IRS rules as they instruct.

O.k. first thing grab a bottle of Excedrin Migraine and a large glass of water or caffeinated drink. hehe Just kidding (although at times it may help.) PTO's are considered non-profit under a "wing" of their school. (This from an accountant locally) therefore you are already a "nonprofit" since your only purpose is to support your school. (Again from a local accountant.) First things first, go to your state's website and under normally either Treasurer or Revenue you'll find what you need for incorporating in your state. Also you will need to go to www.irs.gov and go to publications and fill out the Federal Employer ID number application. You'll have to have this to do anything. (If you have a bank accountant in the PTO's name, they require the number to establish the accountant so make sure it's not the school's ID number. If not you are o.k. and can use that number.) Follow your state's guidelines for incorporating. Each state has different rules I'm sure. This is the easy part as it normally doesn't require much documentation etc. or atleast not here in TN. Then make sure to order, or download the Publication 557 from the www.irs.gov website as well as Form 1023. Publication 557 has one section devoted to the 501 (c)(3) which is what you really need from it. Also, do a search for the link on this forum to the what I call "cheat sheet" for the 1023. I apologize but I can't recall who posted their answers etc. but it has been a tremendous help. Like the other's have posted, incorporating first is the smart thing to do if you ever think you will incorporate. From what I can tell and from our State Treasurer's office it does protect the members in case of a lawsuit, which is a big + in my book with the sue happy world we live in. For the 501 (c) (3) I have been spending alot of my time actually gathering up "supporting" documentation - catalog from our catalog sale in the fall, flyer's from our fundraisers, membership form and card, newsletters (some of this was very easy since I'm the secretary). Now note that your PTO will not officially have formed until the date of it's incorporation if you incorporate. Thus, changing a few things for you. Like for us, we will do a 2 year projected budget but do not have to go back 3 years since we weren't officially formed even though a PTO was in operation we did not have any Articles of Organization nor bylaws. This is the first year for either of those, then add to it the plan to incorporate. Feel free to email me and we can go through this together. I'll share what I have and what I find out on this end. Good Luck and it may seem daunting at first, but it's really not that bad once you read what they really want. It's actually easier than I expected. Of course this Forum has made it like a cake walk in several areas. The only issue I have is convincing some of the board members to do this. Which as my husband tells me, I was born to litigate...not sure if that's a good thing or not? This email address is being protected from spambots. You need JavaScript enabled to view it.

Ok PTOslave, I am not sure if I should say you inspired me or not, but reading you posts has had me doing some digging about our PTO that was organized this Aug too. (In the past the principal has run everything, called it PTO, and has been "dipping" into the funds) I just found out that we are NOT a non profit, incorp'ed, or have a tax exempt #. So, I must first do the non-profit route right? Next incorp, and then tax exempt papers? Do we have to incorp to get a tax exempt #? JHB gave you some sites earlier that I am gonna try for my state, but any tips from you would help.

JHB - So if I read it correctly....we do or I should say "I hope" to incorporate first as I have explained to a few of the members why the need for incorporation (separate legal entity, protects officers etc....)first then the tax exempt. So after reading your post, if we incorporate, to incorporate we will only require the bylaws and then the bylaws and the incorporation papers act as our founding documents for the 501 c 3? I do know our bylaws need a bit of a fix considering they are very vague as they are now and for the PTO's sake they should cover more grounds. Thank you.