Debra - here's a generic version of how we answered that question. Our application was several years ago, before the 1023 was modified, but I don't believe this question changed. We created it as a Word document and attached to the application.

I don't knolw - from the IRS standpoint - if it's a bit too long or just right, but it was sufficient to be accepted.

(P.S. Having formating issues, but hopefully you can read it.)

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Part IV Narrative of Activities
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:

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.

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.

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.

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.

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.

All activities are conducted during the school year in {city}, {state}.

You don't need to have money to report. Simply describe the activities as you expect to execute them.

If you promise not to distribute it, I can give you a document I developed that is part of my $500 "No-Lawyer Non-Profit Launch Kit" for free. Send me an email at christian@getnonprofitstatus.com and I'll send you a copy. It will make your Narrative of activities a breeze!

If you like and get some use out of it, please let me know.

ALSO THIS IS IMPORTANT FOR ALL COMMENTERS HERE! ADVANCE RULING HAS BEEN LARGELY ELIMINATED!

STRAIGHT OUT OF THE NEW 1023:
"Part X. Public Charity Status
Do not complete line 6a on page 11 of Form 1023, and do
not sign the form under the heading “Consent Fixing
Period of Limitations Upon Assessment of Tax Under
Section 4940 of the Internal Revenue Code.”
Only complete line 6b and line 7 on page 11 of Form
1023, if in existence 5 or more tax years."

In about 3 weeks I will be releasing my "Turbo1023" product, a software that will revolutionize Form 1023 for leaders of prospective Tax Exempt Orgs. For $500, I'll guarantee the IRS will love your application. To get an advance copy, email me at Christian@getnonprofitstatus.com. Also get a copy of my $27 eBook FREE when you register at GetNonProfitStatus dot com .

I welcome questions. Thanks.

- Christian Anderson

I need help with filing my 1023 form. I am stuck on the narrative section (IV), I am a new non-profit organization, only have 10mos. to complete this form. having my first Fundraiser/Building Fund in October 2011. But I can't seem to answer part IV because I don't have any money to report to the IRS right know.

Yes, you will still get your nonprofit status.

After reading Critter's post, I'm sending out letters to the treasurers of the PTO's that I completed the 1023 for to remind them of the 5-year mark and form 8734 that will need to be completed. I'll still be around although with kids in only one of the schools so I guess I could follow up with them in person as well. With the turnover in PTOs, the 5-year mark was obviously NOT designed for us!

[ 10-09-2006, 04:30 PM: Message edited by: njmom ]

I'm so glad this topic came up as we are wrestling with it ourselves!

I would like to ask for clarification on one thing, just to make sure I have my facts straight: by applying for advance ruling, we still get our tax exempt status. We just have to file financial documents that verify that in five years. Is that correct?

Thanks for your help! We felt like we had a pretty solid grasp on things and this caught us by surprise! Since we won't be close to the 8 month financial period, I guess we'll file for the advanced ruling.

I downloaded form 8734 and you're right Critter, it doesn't look too bad. I know that I won't be involved in 5 years since my youngest is in his last year at the school. I'm concerned that whoever is involved in 5 years may not follow through with this - what happens then? I will try to leave obvious reminders, but things could change hands many times in 5 years....

It has taken us so long just to get the bylaws, articles of incorporation and now form 1023 completed that the person I'm working with no longer has a child at the school. She and I made an agreement that we would complete the 501c3 process together since we understood what neede to be done. It's our lasting gift to the PTCA!