There's a lot of information all over this site with information on the pros and cons of having a 501c3. Personally, I'm all for it. You have a lot of money going through your account and right now, since you have your own tax id number, none of the donations you receive are tax deductible for your donors - since you don't file taxes. You need to look at the information that's here and the work involved in getting a 501c3 and make a decision.

However, what you really need is insurance! Yes, you, as a member of the board, could get sued if a child was injured at one of the events you sponsor. You could also be sued if someone mishandles the group funds, etc. You may fall under the school insurance, but group insurance is relatively cheap (under $500 per year) and highly recommended. The AIM insurance offered through PTO Today is great insurance and will make sure you are covered for everything. I never can understand why groups are so reluctant to get insurance. You may never need it -- but it only takes once. I would only take my board position after I verified that we have full coverage for officers.

Hello,
I am a new PAC (parent advisory committee) co-chair. Our PAC is not a 501C3 or incorporated. We are wondering what the legal requirements are? The past president has informed us that we could all be personally sued if a child gets hurt at a PAC sponsored event. Is this true? I do not understand how this can be true since everything I have read about our organization says "every parent of a middle schooler is a member of the pac" does this mean that every parent could be sued? Or just the ones that volunteered to be officers? If only the officers can be sued then why would anyone volunteer to be an officer in the first place? I would just resign and still help out and volunteer in the same capacity I have been but without the title of "officer" so I can't be sued! Does anyone have any advice for me at all, I really need help with all this. I don't know about 501C3 or becoming incorporated or anything. ...oh one more thing, we do have our own taxID# and we have about 12,000 in our account right now but will be spending most of that before next year. When we asked a tax attorney he said we would not have to pay taxes on any of the money so just to verify that our treasurer called the IRS and they told her the same thing?? How does this work? It's all so confusing.... I hope someone can help me