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Procedure to change from a PTA to a PTO

18 years 5 months ago #76752 by sorcha's mom
Replied by sorcha's mom on topic RE: Procedure to change from a PTA to a PTO
mpkmom,
I am from a WA pta and we are just starting the discussion to switch to pto. Is it really that simple in the state of washington to switch over? Thank you for any info that you could give us.
18 years 7 months ago #76751 by mpkmom
Replied by mpkmom on topic RE: Procedure to change from a PTA to a PTO
Hi Shawn.
We are our own separate corporation as are all PTAs in Washington State-- with filed articles and everything -- the only mention of PTA is in our name -- so it is a $10 fee to files an amendment to those articles and change our name. As for our IRS status -- that also was obtained under our own corporation -- so again; file a name change and new bylaws (we are required to follow state bylaws as a PTA - so we have to write new ones). It is much easier than what the State office would have you think....
18 years 9 months ago #76750 by Shawn

Originally posted by mpkmom:
PTA is always telling us we are our own separate corporation....our state bylaws talk about dissolving a unit (not disbanding) and we have no intention of dissolving our corporation...I am confused

This is not exactly true...
Unless you've filed your Articles of nonprofit incorporation papers with your state.
We're not a nonprofit corporation in California even under the PTA umbrella.
We must file Articles of Nonprofit incorporation with the state, then the IRS gets the Articles plus bylaws plus that long form (1023) I think, plus $500 for 501(3)c.

Now if you are trully an incorporated nonprofit- a name change is just a matter of paperwork, in most states.

I dont know about the IRS status though.

[ 02-19-2006, 06:32 AM: Message edited by: Shawn ]

<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...
18 years 9 months ago #76749 by mpkmom
Replied by mpkmom on topic RE: Procedure to change from a PTA to a PTO
Thanks Tim,
I have actually been through a process similiar to this -- I was with a co-op preschool that disaffialted from a community college -- and they also made all sorts of legal threats -- that all proved to be untrue -- we were able to simply amend our artciles of inc and write them out -- it had no affect on our 501c3 status at all. I will contact the IRS to look into that area and we have retained an attorney pro bono. I will keep you posted.
Thanks again!
18 years 9 months ago #76748 by Rockne
Hi mpk -

There's not exactly volumes of legal precedent to go on here -- the comings and goings of PTs v PTAs isn't exactly a high priority for the legal minds around the country.

I suspect some of what you suggest is doable, but -- like I said -- there's no clear/definites on those questions. And i'm not an attorney.

That's why I suggest that simply disbanding the PTA and starting up an entirely new PTO is the cleanest/easiest way to go. It's extremely clear the steps involved, if you go this way. And clarity can be good.

A couple of observations:

1. As a PTA, your 501c3 status is wrapped up in your PTAhood, so -- when you go PTO -- you will need to get your own 501c3 approval.

2. It's in the incorporation area that you may have a point. Your incorpoartion as an entity is yours/not wrapped up with your PTAhood. You *may* be able to just go through the name change process with state for that part. However, there's a chance that the 501c3 thing may complicate that.

Again -- these gray areas are why I typically suggest the wind down PTA/ new start PTO direction. No gray.

If you do go your direction, i hope you'll share what you learn/experience.

Good luck,

Tim

PTO Today Founder
18 years 9 months ago #76747 by mpkmom
Replied by mpkmom on topic RE: Procedure to change from a PTA to a PTO
Our PTA wants to become a PTO - why is it that we cannot simply amend our articles of inc - instead of creating a whole new entity? PTA is always telling us we are our own separate corporation....our state bylaws talk about dissolving a unit (not disbanding) and we have no intention of dissolving our corporation...I am confused
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