Percentage...just estimate. If you spend a little time thinking about the activity and the relative amount of volunteer hours your members devote to it, you can estimate its proportion of your group's total effort. The IRS doesn't require you to back up your estimates with hard data, they just want to know generally how your group spends its time. For example, they would probably be concerned if your group spends the majority of its volunteer effort on an activity that borderline "exempt".
I'm glad I checked back, I was just editing my attachment. I like the column idea thank you. How do you figure out what percentage is dedicated to the activity?
I worked on the new form and the IRS advised that failure to provide enough info in Part IV is one of the top reasons an application is delayed. They suggested you could set up your response in spreadsheet format with the following column headings:
* What is the activity?
* Who conducts it?
* When is it conducted?
* Where...?
* How does it "further your exempt purpose"? (that's IRS-speak for explaining why this activity is consistent with the kinds of activiites that the IRS considers exempt/charitable)
* What percentage of your group's efforts is dedicated to this activity?
* How is the activity funded?
Just keep in mind that the IRS is going to evaluate whether your group qualifies to be exempt based on this section, and the other info you provide. You want to emphasize how the activities support your group's purpose.
Thank You. That's very helpful. It appears to be an expanded Statement of Purpose. That is much easier than what I actually typed up. I think I'm making this harder than it has to be.
We applied under the old form, but I think that section is about the same. I don't know how much text they EXPECT, but here's what we included (as an attachment). In hindsight, I imagine it could have been briefer.
The purpose of the {school} Parent-Teacher Organization (PTO) is to support the school and its students by coordinating volunteers, enhancing the quality of education provided, and to supplement existing programs and services. The key activities of the organization are to:
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1. Coordinate volunteer participation to support school programs. This includes matching volunteers to school needs such as: mentoring students, relieving teachers during one-on-one testing, staffing activities such as "Track and Field" and the school Book Fairs, and chaperoning field trips. This is an on-going activity by all members of the PTO, but specifically directed by the Volunteer Committee. It is the most important activity and accounts for 30% of the organization’s effort.</font>
2. Host extra-curricular activities that support family involvement. These will include activities such as "Breakfast with Santa", reading seminars, Family Skate Night, Parents' Night out. They may be held sporadically throughout the year and shall be coordinated by an Ad Hoc committee or by the Executive Board. This category accounts for approximately 25% of our effort. Activities are funded with donations, admission charges, and moneys raised from fundraisers.</font>
3. Support school activities and increase school spirit. Will include the selection and sale of a school T-shirt, publishing a school directory, coordinating teacher appreciation events, promoting PTO membership, supporting/rewarding student activities. This activity will occur constantly throughout the year. Everyone on the PTO Executive Board is involved to some degree. It accounts for approximately 20% of our efforts.</font>
4. Raise funds for supplemental services, equipment, and supplies. Depending on the goals for the year, the PTO may plan up to two major fund-raisers per year. One is usually a sales activity of items such as wrapping paper, candy, gift items, cookie dough, etc. The other is some sort of family event, like a school carnival. The funds will be used to purchase school computers and software, pay for educational enrichment programs, cover the cost of events such as "Track and Field", assist with teacher supplies and training, and provide equipment for music and P.E. classes. The fall fundraiser will last for about 3-4 weeks, with the primary PTO effort involved in kicking off the program, reconciling the funds, and distributing the product. This is handled by the Fundraising Committee. The spring fundraiser will typically be an event held in April, which will require more planning and many more volunteers. There are also some less interactive fundraising activities, such as the collection and redemption of General Mills BoxTops. Fundraising is expected to occupy approximately 20% of the PTO's time.</font>
5. Support the school administration. PTO officers participate in plans for the Campus Management Plan, safety programs, testing schedules, and technology initiatives. While the PTO does not set policy, it supports these efforts and provides feedback and assistance as requested. These activities occur sporadically throughout the year, generally involving the President and/or key officers. This is expected to occupy 5% of the PTO effort. No funds are required.</font>
All activities are conducted during the school year in {city}, {state}.
