FYI...if you have applied recently, it may take longer than normal for a response. According to our IRS caseworker, they had over 100,000 more applications than usual - apparently due to the number of new nonprofits to provide assistance to the hurricane victims.
Question all you smart folks. We applied for 501 status almost 12 months ago...how long does this thing take and any ideas on where I can check up on it? d
The rule of thumb for groups like ours is $5000 (gross, not net). If you make less than that, you are fine. Just continue to operate informally. If you make more, you should formalize to become a 501(c)3 and follow those rules.
Note - no matter how small a group, you should have some basic processes and protections so funds aren't abused.
AND YOUR INCOME IS ABOVE THE LEVEL that triggers reporting to the state and federal tax agencies....
whatever that limit is, I am not sure about 'for profit' PTO/As...but there is a level below which no tax is reportable(just as with private persons).. I have heard the numbner $5k on these boards somewhere as some sort of threshold but I am sure some sharp mind on these BBs will be able to give you beter info, writermom)
We are not a 501c3 and use the district's EIN number. We have never paid any taxes, and our income is less than $5000 per year. Are we breaking the law???