Help! This forum has proven to be an excellent source of information in the past. I truly need some advice.
PTA representatives are coming to our school tomorrow to speak before we vote on dissolution. One of them contacted me today and I must admit I am feeling anxious. She mentioned that "they" would immediately notify the IRS that we are no longer a non-profit organization if dissolution goes through. She also guessed that the IRS would then take 30% of our funds. When I debated this with her, she noted that we could of course give our money to another non-profit. We were planning to give ourselves the money as a PTO and we're filing the required paperwork to be non-profit, but it could take some time. I thought we could just hold the money until the PTO becomes an official non-profit. She says we'll pay taxes on whatever we have so the membership "should be prepared to see what they've worked hard for go to the IRS or just donate it to the state PTA." There's no way we're giving our funds to the state association, which I stressed! The representative said I should be sure to have a 501©3 holder present, with proof of non-profit status, ready and willing to take our money. I've arranged to have a PTO officer from an elementary school within our district come tomorrow. Opinions please! If dissolution goes through, how do we operate as a PTO until we are non-profit? Will we end up paying taxes until we're approved? Everyone's help is most appreciated!