Yes Tim but remember that costs $400-700 to file for non-profit status! With PTA non-profit status is automatic under the umbrella of PTA.

But why wouldn't you want to be a PTA? What many of you apparently fail to remember is that a PTO is an independent organization, and yes not many policies and proceedures to follow, and no one to go to for support, unlike our local units, we have a State and a National PTA, and many resources to make us an effective parent group. Trouble is many local parent groups don't take the time to read them or use those resources. PTA lobbies for quality education for all children. Someone has to. Your voice is heard when you belong to PTA. Your PTO may only care about your school and your child, but ultimately someones child will run this country one day, and what are the odds that it will be one of yours. PTA legislates for all children and is the only parents group that has a legislative office in Washington D.C. PTA has a say on how many laws are written and implemented.

You don't just let a PTA expire you have to properly dissolve. After all you are a 501(c)3. IRS laws state that the money can only be given to another non-profit organization or held in escrow. You have to follow your bylaws to properly disband.

If your wondering why I am in your forums when I support the PTA so much it is because we all have good ideas but I would rather be associated with a non-profit group that has guidelines.

It's up to you.

But there's certainly nothing wrong with starting the PTO before any vote of the PTA general membership. Technically, there's no connection between the PTO and the PTA. They're two entirely different entities. Technically, you're not switching your PTA into a PTO (even though that's what it feels like and it's certainly what your general parent population will see and feel). Rather, you are closing down one entity (the PTA). And starting up another different entity (the PTA). Perfectly OK for the second to start before the first is over.

You can do just the minimum in starting the PTO (get the EIN number, start a bank account). Then if your PTA membership votes to stay PTA, you can just let the newly formed PTO go away (that's easy -- no made-up hoops to jump through) and donate the funds in the PTO account over to the PTA. If the vote goes PTO, then you've already got the basics of your PTO established and you can then proceed to the more formal steps of getting your 501(c)(3).

Tim

[ 09-14-2005, 02:46 AM: Message edited by: Rockne ]

Yes. I am getting my questions answered. Thanks. About running PTO fundraisers - we have not yet held a general membership vote re: disbanding PTA (since by-laws state that assets, records, etc. have to be turned over immediately after vote so we are hoping to have EIN, non-profit status, etc. before then) so how can we start a PTO. Or are you suggesting that a group of us in favor of starting a PTO go ahead and start fundraising as such before an actual vote of general membership.

Hurst -

Sorry to have had a hand in hijacking your thread. Have you received the answers you need? This thread has kind of gone away from your question.

You don't *have* to have a PTA membership drive. One option is to let your group kind of "expire" (a la "full of questions'" group).

RE: the funds, you shouldn't deposit PTA funds into a PTO account. But you can do the first steps towards starting a PTO now (there's no rule against having both a PTA and a PTO operating at the same time) -- steps like getting an EIN and opening a bank account -- and then run your fundraisers as PTO events.

Does that make sense?

Tim

Originally posted by <KCMom>:
You would return the materials because responsibility falls back on the state. Just like the IRS contacts the new officers when there is an issue, they would contact the State PTA since their PTA won't have any new officers.
The State becomes responsible once they dissolve.

I can definitely see this. I think copies are appropriate. Good point.

You also use the example about the AAA but the more appropriate comparison would be an employee who leaves a company. That employee doesn't get to take materials that were developed for the growth of that company or it's franchises.

This is a new one. Now these are materials intended for the growth of the PTA "franchise". All along I thought they were marials intended to make schools better places and help kids and families. Interesting take. I think it's a wrong take (the materials have been paid for), but it is interesting.

Maybe it would help if PTA clarified which materials they want back. The directive seems to say all, but KC/NVMom -- you seem to imply only some. As an example, how about the 2004 Annual Resources? Do those have to be returned?

Tim

We decided to let the PTA become "inactive" instead of formally disolving. The process is much easier. Our PTA memberships were expired on June 30th. The only new members of the PTA for this school year are the officers. We have no new members signing up. We are not doing any business as a PTA, not using the tax exempt, ect. According to the bylaws, a PTA unit exists if there are ten or more paid members. We only have five officers. We are not submitting new bylaws, we are not holding a membership drive since our parents don't want a PTA. We aren't holding a vote to dissolve because we don't have any members. The previous board didn't turn in new bylaws since 2001, as such we've been told we are in bad standing unless we turn in new bylaws. We just aren't going to. Essentially the PTA will self destruct. We were told that we'd have to turn in the books and all assests. We have no assets and we are not going to send the books. We will allow them to send someone to copy if they'd like, but we're keeping the books. What can they do?