I realize this post I'm replying to is quite old. But if anyone out there has an example of either a Constitution or Articles of Organization that they'd be able to share, that would be great! We are NOT incorporated and do not WANT to incorporate unless we have to. We, too, have had 501(c)(3) status for years already and do NOT want to refile (which is what would have to happen if we incorporate!). However, we've been running into problems with updating our ST-5 and not having proper registration with the state. Apparently, we need to reapply for our ST-5 but need organizing documents to do that. Any examples of organizing docs you can share (that are NOT by-laws) would be appreciated!
Definitely, incorporation would be preferred. Unfortunately, it wasn't commonly known (among us on the Forum) when we did it that the order mattered.
I talked a lot to the IRS during that process, and multiple times I mentioned our plan to get our 501(c)(3) and then incorporate. As helpful as they were, no one ever warned me that we'd have to do the 501(c)(3) AGAIN if we incorporated later. Once you've done the paperwork once - that part would only be a minor hassle, but paying the $500 again isn't something we are prepared to do. So we've skipped that idea.
Incorporating is a pretty easy/inexpensive process (in Texas) and it changes your group from a collection of individuals to a legal entity in itself. This can be an important distinction legally and provides some protection for the Board members and officers. (It's easier for someone to go after the personal assets of the officers if the PTO is sued and you aren't incorporated.)
Yes - I would highly recommend getting incorporated.
Note: you will have to declare someone your "agent" and keep that information accurate. There's a small fee ($10-$15) to update this. For that reason, we had planned to designate the principal (who will likely be at the school for years) rather than an officer, who changes each year.
I too am a new president of an existing, informal PTO. I want to take the group to 501(c)(3) land. JHB - love your posts, and since you too are from Texas, perhaps you shed a little light - would you have rather had your group incorporated? Is there any advantages to incorporating or is non-profit status good enough?
