In fact, the first or second year is a really good time to complete the paperwork because you don't have a lot of history to dig through. No, your tax id number alone does not make your PTO tax exempt. That is a very common misconception this forum is trying to correct. Many vendors will waive sales tax if you provide your tax id #, but they are doing that in good faith that your oganization is actually tax exempt. Not necessarily. The tax id number (also called an employer id # or ein) is like your organization's social security #. It's just an identifier you can get from the IRS in a few minutes over the phone. Your PTO is not exempt from tax until it applies for and is granted 501(c)(3) status which many, many PTO's have done successfully. Then, the IRS recognizes you as a non-profit organization, exempt from federal income tax and most (all?) state's subsequently exempt you from paying state sales tax on purchases. Don't give up on the application just because it is long and somewhat complicated. Find another member who likes that sort of challenge. It's important. Good help is available here at the forum, or even easier, in the expert guide that is included with membership in PTOToday's National PTO Network.
Regarding Robert's Rules of Order - I found two easy to read condensed versions for about $5 each at our local bookstore: one by Doris Zimmerman, and one by D. Patnod and there are others. The complete RRO includes pages and pages of detail that is beyond the scope of a PTO's business. These condensed versions seem to hit the stuff that applies to us.
thanks for the info. i hope the ein # is the same as the tx tax number, because this is what we have been using to not pay tax. the books were happly given to me the 2nd month of 2002-2003 and our vp got the tax id number but couldnt figure out the non-profit stuff. our pto board was made up of two other elem. and when i asked about non-profit paperwork they all said "its not something we need to do our first or second year." they must of read that confusing paperwork. well i guess i have my summer homework. thanks again.
nsepto
There is a book called Fundraising For Dummies, I believe it is called. I happened to see it on a link from
web page
.
Have you not been using your id# for purchases? If not then you have been paying taxes on the merchindise you've purchased if you have a state tax.
We haven't bought the Robert's Rules book yet but it is at the top of our list. I hear everyone needs one.
There are alot of people on here that can answer your tax questions. I try to stay as far away from that stuff as possible. (Thank God for Treasurers!) I hope this will give you a start.
we just finished our first year, and we are sitting back wondering what legal things we need to get done next year. we did get a tax id number, but do we and why do we need to be non-profit? do they make non-profit paperwork for dummies? thanks, nsepto
