If you are 501c3 (Non-Profit) you need to file financial forms with the IRS every year. You do not have to pay taxes on what you raise (or include a check with your filing).
If you are 501c3 and have gross revenues of $5000 or less, then you file the same IRS form but don't need to fill out the financial data (but you should include a cover letter explaining why).
If you are NOT 501c3, then technically you need to file Income Tax forms with the IRS every year AND pay taxes on profits your group made.
If you are NOT 501c3, then anyone (any parent) making a donation to your group is not able to take write that off their tax forms as a charitable expense (which may not be an issue until they are audited).
I think it is generally a good idea for PTOs to apply for and receive 501c3, however it does take a certain amount of maturity for an organization to take on that responsibility. No offense intended, but being elected President of an organization without having been involved with the group is something that would concern me. On the other hand, it sounds like you are well on the way to gwtting that maturity in place with creating by-laws and such. You will need to get those things in place first anyway. Once you have a membership-approved Charter (IRS calls it Articles of Organization and bylaws may or may not cover it) you have 15 months to complete the application for 501c3.
I would concentrate getting your organization organized first and then consider starting for 501c3 in the middle of the year.
I was elected president for the coming school year, never having even been in the PTO before. I have already started on bylaws and volunteer programs we sorely needed, but I am having a hard time selling the Board on incorpoation and 501 status. Do we HAVE to file with the IRS every year?? Our fundraising income is about $10,000 each year, but will probably go up this year. Thanks!
