When you apply for 501(c) 3 status, the documents you submit to the IRS become your by-laws, so you may already have by-laws and not know it.

I would agree with CrewChief and Critter and take steps toward establishing a new PTO group but I would not let the past rest, per.se. I would look for a good non-profit attorney and reach out to them. Ask what recourse you have legally to the funds generated previously.

Until this all can be resolved, I would encourage you to get the word out to other families to not support the current PTO. This may be a situation where it's not that only 14 people care about what is going on, it's that only 14 people really KNOW what's going on. Information is a powerful tool...use it.

Well, we tried and we failed. When there's no one out there to enforce any rules there's just not much you can do. We've turned them in, we've complained to anyone that will listen, we've written letters, we've made calls....and we got nothing. Still no by-laws, no audit, no books turned over, nothing. Out of about 309 parents and teachers there are only 14 who even seem to care. We give up!

I agree with crewcheif, Start New and fresh.If you have officers ready to work.Then start with organizing the bi-laws. Past is Past.Besides, you are not accountable for the finance of the past (pretend) gruop. Move a head with your plans follow the step in which crewcheif suggested. Our PTO had to do this two years ago.Today we are a stronger group because of this and due to the fact we have not forgotten it's for the students. Leave the Past behind and move foward and let the Parents know exactly what your mission statement is and stand behind it. If questions arise about the past,send them back to the past board to get their anwers. Run a Happy Clean PTO. You will get the followers from the community that will follow because of the changes and the strenghth you will show. The schools are no place for shady charecters. PTO book are of public knowledge. We did it and so can you. It's hard you will do it!

I concur with the suggestion that you publically create a new group, new name, new attitude.

Regarding the current bank balance...it belongs--at least in spirit--to the PTO old or new. Now how to get your hands on it?

Go to the school's biz office and ask for their tax id #. Explain that you are researching your PTO's bank account. Then go to bank where the PTO's account is held and ask the manager to verify if the account was set up using the school's tax id #. If so, the money belongs to the school and it's theirs to collect. If it's a different tax id #, presumably one that was set up for the PTO itself, ask if you can have that number. I think you can then call the IRS and verify the name of the owner of that tax id #. It's possible for the originator of the account to have used a valid tax id# on behalf of the PTO, that really belongs to another entity (that happened to us way back - the tax id# was really the school district's number, but the account name was our PTO). Depending on your relationship with the bank and how sincere you are, the bank might tell you the on hand balance so you know how much money you're chasing.

First steps to getting organized - appoint directors who draft bylaws that include procedures for electing officers and a policy requiring an annual financial review, among other things. Get a NEW tax id # from the IRS using form SS-4 ( www.irs.gov ) for the new group. With that number, you can open a new small biz checking account. You don't need to worry about the federal 501c3 status for a while, a year or more. Concentrate on getting your NEW PTO off the ground locally, and then formalize your structure as the group matures organizationally. Hang in there!

One of the best tools to help you thru all this is the PTOToday Start Up Guide. It explains the technical stuff in layman's terms. You can order a copy from this website.

There, I believe is one of the advantages of being PTA-the national organization I believe (not certain because our group is PTO)has in place sources to go to when things go haywire like this.

YES, the fact is that PTA always has somewhere to go when problems arise.

They had bylaws when they were PTA but never changed them when they became PTO. They really don't think it's a problem they don't have them.

Are you sure they went through the steps of getting a 501 c(3) on their own? This group sounds like maybe they assumed the 501 c(3) like the PTA by-laws just carried over to the PTO.
Have they been filing 990 income tax returns with the IRS?

It may be time to just dissolve the old group, and start up new with by-laws, etc. Lots of info here on how to, also contact www.pta.org
Lots of support and info on by-laws and 501 c(3) non-profit status through them.

Your group has reached a level of dysfuntion that seems irreparable - but it isn't. You can do this.

From my point of view you currently have no parent group. But that's good news. I say walk away from the past and look straight into your future. Clean slate, fresh start, choose your cliche. It'll be hard to build from the ground up but, IMO, better than rebuilding on a rotten foundation.

These are the steps I would take:

1. Regroup with your fellow new officers and establish an executive board along with the principal and two or more trusted teachers.

2. Define your goals for the year:
a. Adopt bylaws (appoint committee)
b. Establish new checking account (require two signers)
c. Set fundraising goals
d. Define programs/events; appoint chairmen
e. Increase parent and teacher membership

3. Communicate, Communicate, Communicate

You can't really blame anyone for refusing to step into the current firestorm. But, once the staff and parents realize that there is a new, improved and serious group in charge of the PTO, they will probably do everything they can to support you.

[ 09-13-2006, 06:31 PM: Message edited by: CrewChief ]