Think about all the various school organizations (especially once you get beyond elementary) that collect money for something. Even if it's just choir or math club or whatever. (I'm NOT talking about the big money like "Band Boosters").
Some of these have a bake sale and need $200 others may need $2000-$3000. I think it would be overkill for each of these to become a 501(c)(3), incorporate, etc. Same thing for the PTO.
If more than $5000 per year (total, not net) is coming into your account, you need to formalize. Otherwise, I wouldn't do anything other than have good bylaws and decent processes.
Of course, even if you have a little money, you do need an EIN for the checking account. But that's no big deal.
If you get involved in rasing "big" money for the school (and you don't plan to change your structure), then do it as a volunteer group. Let the school "own" the fundraiser and deposit the funds in their account.
If all you have coming in is token dues, I'd keep it as simple as possible.
JHB #499 re: 08-27-04....when you say "I'd probably advocate them not becoming a big, separate organization, but instead just acting as a volunteer organization within the school's domain." .... do you mean not apply for 501c3 but get your EIN, open account, get incorporated....we are a school that only collects dues, no fundraising--mostly about communication and volunteerism...dues pay for operating expenses and whatever else we can do...thank you for any help.
Oh, how this topic fits our situation! My questions is this: We are in the process of merging our funds with the schools because we do not have non profit status secured. I am concerned that we don't have enough support in future years to maintain the proper paperwork to do this. It has been recommended to have a memorandum of understanding drawn up to ensure the school doesn't use our funds for their own purposes without following our by-laws, etc. Does anyone have any other recommendations or has been through this situation? I should mention that we are a private/independent school.
Oh, how this topic fits our situation! My questions is this: We are in the process of merging our funds with the schools because we do not have non profit status secured. I am concerned that we don't have enough support in future years to maintain the proper paperwork to do this. It has been recommended to have a memorandum of understanding drawn up to ensure the school doesn't use our funds for their own purposes without following our by-laws, etc. Does anyone have any other recommendations or has been through this situation? I should mention that we are a private/independent school.
