We already have a group and we are already planning an event. We also have sales of Nachos on Thursdays that goes to the PTO. That money will pay for the event we are planning. So, I guess we could do the EIN and then collect up some money from small fundraisers and pay for the filing fee with that. We are meeting next week to write out by laws and fill out forms, but I guess we can mail them in later.

Thanks for your help. We are a Title 1 school and do have a lot of parent/family involvement events, such as the harvest festival we are planning for November.

Phil has some good advice, there is one other way you can do it. you can apply for an ein number and that doesn't cost anything, with that number you can then open up a checking account for your group-THAT NUMBER DOES NOT MAKE YOU TAKE EXEMPT, but it does allow you to start a checking. I agree with building parent involvement first, I wouldnt get into all of the worries of 501 and all that UNTIL your group is established somewhat, we started in September 2001 and didnt get 501 status until early 2003. However you will need money...so sooner or later you will need to bite that bullet, pick something that is simple and if it is company-watch the percentage of profit. Candles would be good at this time of year! Just be aware that the ein number does not prevent you from paying tax! Good luck!

If the school principal is willing to "loan" some money to the PTO to get it off the ground, then take it and be clear about paying the school back.

I would take a different approach. Instead of immediately starting a PTO with a focus on fundraising, why not start with a focus on parental/family involvement. Announce you want to start a PTO to find a way to help the school (or enhance its mission) and call a meeting. Find out what other like-minded parents are able to participate and what ideas they have. The begin to formalize your group by setting by-laws and electing a board.

Once your by-laws are set, then you can start thinking about fundraising AND about applying for 501c3 and getting official permission to fundraise as a Non-Profit. You have about 15 months from the time you approve your by-laws (well, by-laws aren't enough but that is a discussion for another thread) to apply with the governmental authorities.


If you think you must start with fundraising, talk to the Principal and see if s/he would be willing to act as your bank (i.e., let the PTO deposit money into the schools bank account and let the school be responsible for making payments on behalf of the PTO). In this case, you are acting as an extension of the school which allows you to use the cover of the schools Non-Profit (Municipal Government) status. The drawback is that it is the schools money, not the PTOs, so if the Principal decides to spend that money elsewhere there is nothing you can do to stop it.

Hope these ideas helped.

I dont know the legalities.. but some of our PTA's would loan 'downpayments' on fieldtrips/ speakers/ assemblies then school would reimburse PTA- as long as it above board I dont see why not.

Also if the school is a Title I school they should have a budget item (and $$$$) for Parent Involvement (ie Parent University, Parent Nights) -I dont see why starting a PTA/PTO couldnt come from it.

I feel like we're in a chicken or the egg situation here. We want to start a PTO, but it costs so much money to file and our school has nothing. Can we start fundraising before we file or do we need to file before we can start fundraising?

We had a PTA, but the funds got wiped out completely. Long legal story. If we get that money back we will be in decent shape to get things off the ground, but until then, can the school loan the PTO money to file and then get paid back when the PTA money comes back in?