"The two topics are: PURPOSE of your organization and DISSOLUTION CLAUSE. You can probably get the exact recommended wording by calling the IRS tax exempt help line at 1-877-829-5500 as it's too long to add here."
You can get the exact wording of the dissolution cluase in the "501c3 major help needed" post in the robt's rules, bylaws, legal section of this board. I've posted it.
I'm not an expert, but here's what I know...AOI is similar to a Constitution in that they are both "organizing documents" that declare your organization exists. In theory, after your organization comes into being by the creation of one of these documents, your Board will write Bylaws which are the rules for day-to-day operations. It's been my experience that most PTOs have only Bylaws, often with "constitutional-like" language in them.
If your PTO wants to file for 501(c)(3) non-profit status, the IRS expect you to submit both an organizing document (either AOI or Constitution) and Bylaws. AOI is the founding document for a corporation. A PTO can become incorporated in its state by filing AOI and paying a fee - rules vary from state to state. Check your state's website for details. If your PTO files AOI and becomes a corporation in your state, then you submit the AOI with your Bylaws when you file the Form 1023 application for 501(c)(3) non-profit status. A PTO does not have to become incorporated to gets its 501(c)(3), but if you choose to incorporate, do it before you file form 1023. If you want to incoroporate after getting your non-profit status, you will need to file form 1023 all over again because the IRS sees you as a brand new (incorporated) entity.
Why incorporate? Incorporating provides protection for the personal assets of your officers and members if your PTO is sued. In our state, we pay a one time fee of $20, and an annual fee of $10 to incorporate. I also found the AOI form that my state provides to be very simple, much easier than writing a complete constitution that ends up being highly redundant to our Bylaws.
Warning from the IRS representative at the Chicago PTO Today show: there are two paragraphs that the IRS looks for in an organization's AOI/Constitution. Be sure to add them if your state's AOI pre-printed form doesnt. The two topics are: PURPOSE of your organization and DISSOLUTION CLAUSE. You can probably get the exact recommended wording by calling the IRS tax exempt help line at 1-877-829-5500 as it's too long to add here. Hope that's not too much information.
Can anyone tell me what the "Articles of Organization" are and if they are needed in PTO bylaws? Also, are there any guidelines which we can follow in establishing our bylaws? Thanks for the info!
