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Why can't we use schools tax exemption?

7 years 10 months ago #171686 by Bonnie Thornal
Replied by Bonnie Thornal on topic Why can't we use schools tax exemption?
Because you aren't the school, and that would be tax fraud. Sort of like, if we are both business owners and the businesses are unrelated, you have tax exempt, I don't - and you allow me to use your tax exempt certificate. We're both paying restitution, and probably doing jail time. It might seem like the school and your organization are related, but they are separate and individual entities. just like you can't use my driver's license to get out of a ticket, and I can't cash your social security check, PTO can't falsely insinuate that they are the school. You want it this way, though. You want your board, and your board only, to decide how the business of your not-for-profit is handled. Another example of why you can't use their tax exempt: taxation (exemption) without representation. lol! If they can't control your organization, or make decisions for it, then it's because the two of you are separate organizations, therefore - again - tax fraud if you elude taxes that the state has yet to exempt you from. What if the state decided to deny you tax exempt status and in using the school's status, thousands of tax dollars had gone unpaid; had been EVADED... get the difference yet? the lines here are much fuzzier, but if you consider it in black and white, it's easier to comprehend. Only items that the SCHOOL purchases for the SCHOOL'S resale and use can be exempted from tax fees under the SCHOOL'S exemption status
17 years 8 months ago #129134 by Shawn

FB PTA MOM;129120 wrote:
To sum it all up...PTO is for your school & your school only and it is accountable to the school district. PTA is for all children - your schools and others and has resources to help members and officers both locally, state wide and nationally.

Thanks,
PTA MOM


Agreed Tim- dead wrong- NO PRIVATE 501c3 is accountable to anyone but its members. Not that the school or others cant make life hard and miserable (as a PTA member, I could blow off State and Natl (other than that dues isuue- if a PTA wanted)

As for her children quote- I've made enough people mad and wont even go on about how ridiculous that statement is. (but then again the PTA Natl Pres or CEO only wants grassroots lobbyist in its org :) according to quotes)

PTA/PTO the moniker or acronym doesnt matter (Their ALL about the children- each in their own) way to say any different... well would just be ridiculous (my 3 and 5 yr olds word of the day)


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Author: Albert Einstein

<font size=""1""><font color="#"black"">Liberalism is not an affilation its a curable disease. </font></font><br /><br><font color="#"gray"">~Wisdom of Shawnshuefus</font><br /><br><font color="#"blue""><font size=""1"">The punishment which the wise suffer, who refuse to take part in government, is...
17 years 8 months ago #129127 by Rockne

FB PTA MOM;129120 wrote: Please understand that if you choose to be a PTO, you are considered part of the school as are your funds that you operate from. Even if you have a separate account, your annual budget will be included in the schools audit. However, if you are PTA, you do not answer to the school...you operate to assist the children of the school which sometimes also helps the school itself. If you are PTA, your annual budget is not included in the schools audit because you are part of a national organization that does not necessarily answer to the school itself.


Thanks,
PTA MOM


Hi PTA Mom --

I can't answer completely right now (because I'm on site setting up for our biggest PTO Expo tomorrow, where we'll be helping more than 500 parent groups in person), but had to make a quick remark: the above is just plain dead wrong.

It's entirely possible (and it's the case for tens of thousands of PTOs around the country) for a PTO to be every bit as independent as a PTA. Some PTOs choose not to go that route, but it's entirely that PTOs choice.

Tim

PTO Today Founder
17 years 8 months ago #129123 by dlf
PTA Mom
I am a PTO that doesn't answer to the school system at all. While you are correct that if you operate under the schools tax id etc you are not separate, I wanted to make the distinction that not all PTOs answer to the school system monetarily. We exist as separate entities but will often band together with other PTOs and PTAs to make changes/impacts in our community.
d
17 years 8 months ago #129120 by MIami

MIami;127748 wrote: How did any of these PTO's start without any funds and pay for their tax exempt status? Our group has had only one meeting and at our next meeting we will be trying to figure out if we want to be a PTA, PTO, PTSO, or PTO.


Please understand that if you choose to be a PTO, you are considered part of the school as are your funds that you operate from. Even if you have a separate account, your annual budget will be included in the schools audit. However, if you are PTA, you do not answer to the school...you operate to assist the children of the school which sometimes also helps the school itself. If you are PTA, your annual budget is not included in the schools audit because you are part of a national organization that does not necessarily answer to the school itself.

The cost - yes, there is a membership fee but what you get for that fee far outweights the cost. As someone already mentioned, the free training, literature, programs, etc....you couldn't pay for that with what little you pay National PTA and State PTA dues for. With PTA, you have regional, state & national people that can help you with whatever your unit needs. If you are PTO, it is up to you to find the help and answers you need.

To sum it all up...PTO is for your school & your school only and it is accountable to the school district. PTA is for all children - your schools and others and has resources to help members and officers both locally, state wide and nationally.

Thanks,
PTA MOM
17 years 8 months ago #128988 by volpeace
So, if we decide not to go the 501(c)3 route and want to be up-to-date with the IRS, what would our classification be? What label would the IRS give to us - unincorporated assn, business? Also, our school gets the PTOToday magazine does that make our club a PTO or is there a formal process to forming a "PTO". I'll go over to that section of this site after I finish this question. If we pull in more than $5000 gross then we are able to file for 501(c)3 status but if we don't want to then what do we want to file for? If we pull in more than $25000 gross (per year) then do we have to file for 501(c)3 or only to avoid the high taxes? So many questions and so little time!
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