There's two major steps usually: incorporating in your state as a non-profit (in our state that's a fee of $25, renewed annually for another $25) and....registering as a federally-recognized 501c3 tax-exempt charity. That's been a one-time $500 fee in the past (though it's up to $750), along with a very involved application. If a group has earned its 501c3, there's no annual FEDERAL fee due and no annual federal taxes due, but there is an annual return due, specifically the Form 990/990EZ. If your PTO has earned its 501c3, and you haven't been filing your annual returns, you will have some explaining to do to the IRS...and unfortunately possibly some fines. The document that proves 501c3 status is called a Determination Letter and it's a dull document of several pages of typed text. Not a pretty certificate or colored seal or anything that will stand out in the files. But if you are 501c3, you should have one.
Call the IRS at 1-877-829-5500 and have them help you figure out if your PTO is really federally registered. If not, then you can start the application process if that's appropriate for your PTO. If you are, then ask the IRS rep what to do next.
Hi,
I am a new president of the PTO and have a couple questions regarding the irs laws. We are incorporated and have our state tax number. That was all approved last year. We have amended our bylaws this year and have new members on the board. I thought we had to resubmit this information.I am confused (and of course i have no paperwork or guide lines)the other members on the board tell me we already paid our $500 fee we are set for life. I honestly thought you didn't need to pay yearly just reapply for the year to stay current. I thought they asked for current copies of the bylaws, budget and the agendas and minutes.
