You might want to just carve out some time to read and explore the Management and Roberts Rules Sections as there is a wealth of information posted in previous threads. But in a nutshell...
If you formalize your organization, you CAN do it yourself. Some have volunteers who are CPAs or lawyers who help. Some do pay for professional help. But many of us just read and asked questions and did it ourselves. Be sure to check out the benefits of joining NPN on this site (National PTO Network in the link bar to the left). Membership will give you many tools and instructions to help. (But it's not required that you join to participate in this forum.)
1) Write your articles of incorporation (AOI) and bylaws (with an eye to meeting state incorporation and IRS requirements).
2) Incorporate - handled at the state level. In most states incorporating as a non-profit involves creating the AOI (state usually has a template), filling out some minor paperwork, and paying a small fee (maybe $25). One or two Forum members have said their state rules/costs are complicated enough to maybe not be worth it. But in most it's a pretty easy process. Primary benefit is that it turns your organization into a single legal entity rather than collection of individuals - which reduces personal liability for the officers.
3)Apply to become a qualified 501(c)(3)non-profit with the IRS. Fill out some pretty hefty paperwork and pay a fee (usually $500). Gives you exemption from most income tax, increases credibility, allows donations to your PTO to be tax deductable, may be required for grants, state tax exemption, etc.
4)Become tax-exempt at the state level . Exempts you from paying all or some sales tax. There are two pieces to this. 1) Paying tax when you buy things. 2) Collecting/remitting sales tax to the state when you have a fundraiser.
May require 501(c)(3) status first. If you are qualified, it's usually pretty easy. (For us, it was sending a letter to the Secretary of State with a copy of our 501(c)(3) designation.)
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This explains mostly the formation of the business. (And a PTO is a non-profit business.) But several things happen simultaneously during this process. You should be developing your actual program, getting a tax ID number and setting up a checking account (do NOT use a personal SSN), getting your processes in place, recruiting your volunteers, etc.
It's not ALL dry business stuff. But it's good to lay a solid foundation.
Okay, I'm out of time and out of steam. Someone else please tackle "insurance"....
Wow! I didnt expect all these replies! Thank you all so much. I am planning to speak with the principal/pastor to set up a meeting where we can spend some time "really talk" about vision & other things you suggested here.
How much does it cost to incorporate? Do I need to have an accountant to do end of year procedures w/ financials or can I do it myself ( Ihave some experience in previous bookkeeping & acctg jobs but dont have a degree)?
If I do incorporate how much money does an organization spend on upkeep of the organization instead of using all the money for the school?
What the point of insurance? I saw that either on this site or another. But it said it was a good idea??
Thanks again for the input I really need this knowledge & encouragement!
Julie
There's a lot of great information on this Forum if you spend some time exploring.
One of the key steps for your group will be deciding the scope of what you will do - especially since you are with a private school.
All our parent groups exist to "help the school", but you need to think beyond that. And while "fundraising" shouldn't be your primary goal - it will have an impact on the type of organization you set up.
Are you going to be an independent organization, separate from the school, and doing your own fundraising? If so, and if this amount will exceed $5000 gross per year, you should formalize (incorporate, apply to be a qualified non-profit with the IRS, file for tax exempt status file with your state).
Are you going to act more as a volunteer organization, assisting the school with its fundraising?
When it comes to any fundraising, be very clear about who controls the funds and why they are being raised. Private schools often need fundraisers to repair the roof or buy a new air conditioner - not just to supplement programs.
Generally speaking, there's no one perfect model. Your PTO can be whatever it needs to be to support your goals, just be very clear about your direction and scope.
Start by putting the word out to the Moms you see everyday and what they think. Talk to teachers at your school, you never know, they may have come from a school that had a great PTO/A.
Can you see how other Christian schools in your area have organized? And you know, you don't have to be a PTO etc. Pick your our name! I like to have fun with our name (Parents Talking Often or Parents Taking Over!)
One important information to have, what does the Principal see/envision/have in mind as a mission for a parent group. This will be important knowlkedge when writing by-laws and policies and how funds will be managed/handled.
No you didn't open a can of worms, and you didn't take on too much because once the word gets out the parent support will come.
... is a great resource for a new group. In particular, one of the expert guides provided to NPN members, "PTO Start-Up", will walk you through the nuts and bolts of getting your group up and running.
I have never started one myself, but I think the first thing to do would be to find some other interested parents. Send home flyers stating that the school would like one of these organizations to form and plan a meeting date where you can get together with other interested parnents to devise a plan.
