kimberri - for the reasons you mention, many, many of us independent PTO's have successfully filed for our own 501c3 status. The application is IRS Form 1023. It's a bit complicated, but certainly within the grasp of most PTO's. There is no umbrella 501c3 for PTOs like there is for National PTA. While an umbrella exemption might save you a little hassle initially, your individual unit still has to complete the annual IRS Form 990/99EZ return on your own.

There's loads of information on this website and in PTOToday's Start Up Expert Guide about applying for 501c3 exemption.

Our PTO is having some issues this year. They did close out the original PTA and "distributed assets" to the high school PTA and did a lot of "purchasing" in the district so they went into the PTO with pretty much nothing. The problem is organizing as tax exempt with the state and with federal. Is there a PTO exemption umbrella that covers PTO's like PTA's? This is important because the state will not allow tax exempt purchases and the IRS will look at the organization as a corporation and tax it accordingly. What have other PTO's done in order to obtain tax exemption? What about contributions from community businesses or individuals? They won't be able to deduct as a qualified contribution to a 501(c)3 unless it is valid with the IRS.

Hi Tim

You are right....we were a PTO oringinally. Prior to being a part of the PTO, the treasurer stole about $18,000.00 out of the account, she was caught and arrested and was ordered to pay back. The new administration was so nervous about this we decided to become a PTA for the respect and protecton they offered. Now... we have our act together and are back on track with all the money returned. So now, we are trying to leave the PTA. Here is the deal, our bank account ein # is under our old PTO name. We don't have or can not located any bylaws, which were supposed to be done with the help of the PTA person they sent in. Also, we paid dues one time, and never sent another dime in. It has been over a year and no one has come looking for money. The only paper work we can find is a membership card and a user name and password that denies us access. We live in Massachusetts and are really concerned about all the money that we presently have in the account because of the re-payment from the "theif". Any help would be greatly appreciated.
thanks!

cindycasey;137491 wrote: We want to change over to a PTO from a PTA. We never changed our bank account or used the tax exempt status from the PTA. The only thing we changed is the O to an A (PTA). Anyone know if we are legally bound to give over our assets when they are in a PTO account? We have an EIN number for our school under our PTO name. We are having trouble finding answers and don't want to question the local PTA just yet until we know what we are up against. Any help would be appreciated.

Hi Cindy -

Yeah, good idea to arm yourself with information before contacting state PTA, as -- as you've guessed -- you'll often hear fairly self-serving analyses of the situation from that direction.

Would need a bit more info before answering definitively, although I can say that PTA really can never just take your funds. Funds are in your bank and you guys are the signers.

Sounds like you were a PTO, became a PTA and now want to revert to PTO again. That right? How long ago did that PTO-to-PTA switch take place? What state are you in?

Sounds like the switch to PTA wasn't done all that cleanly. Technically, you should have gotten a new EIN,. in my opinion, and had a new set of books for the new PTA organization.

Would definitely be helpful to hear more about what you've done. You can also reach out directly (my contact info is on the "about us" pages.)

Tim

I'm wondering when you charted under PTA did they give you 501c status or did you still have to pay the $750 fee to register with the government. i'm trying to decide between pta and pto and our little school really can't afford the federal fee to list but if we have to pay it either way we'll pick PTO so they'll be no dues

Thanks, the PTA person who contacted us told us we would have to turn over our assets or profits to the MA. PTA. We never officially opened a PTA account so we are hoping the money can stay in our PTO bank account.