more and more schools are saying no to anyone using their tax number, anything comes down and they are responsible more so than if you are seperate. I was told by NYS that it is basically not legal unless the money is in a school account...
Our School District and State Auditors Office say we can not use the school's tax ID number to open a bank account. As next years new PTO President, I checked our account and it was opened using an old tax ID number that from 1995 under PTA. We are no longer a PTA. The tax ID number that we have been using has been deactivated, but our account is still open. It is my understanding that we need to apply for a new EIN and open a new account. I beleive our PTO members would suggest we leave things alone and not bother with the account. I tried to explain to our Principal about our PTO paying the fees and applying for our own non profit tax ID number. I can't seem to get her to undestand why we need to do this. Her reply would be ..if none of the other schools are doing it and we have not had to do it in the past, why do we have to do it now. Do I just leave everything alone...or explain things a different way?
snowgirl - you can use the school's tax id # indefinitiely as long as it's with their permission and with the understanding that it basically makes your team a service branch of the school. This gives them quite a bit of authority over you.
I've worked on teams set up this way and it's been amazingly positive. We run our financial info through the school for review and turn our books in for audit along with the school's books every July. The school exerted very little control over our group. There was wording in the bylaws that would allow them to step in any time but we ran a very tight and professional operation so it was never necessary.
Many groups opt for independent status and go through the necessary paperwork to become so. There are many threads on here discussing the process.
Know that even with independent status, the school still has some control over your group as you function within their building and the work you do affects their students and staff.
I say discuss the options with your team, including the principal, and decide what's best for you.
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Using your school's number may be OK, but you should ask their permission when you use it. You need to obtain your own Federal Tax ID (form SS-4), then if you wish, you can apply for Federal Tax Exemption (Form 1023). You should also file for state tax exemption as well. Applying for your EIN is easy & you can call the IRS to get started - 1-800-829-4933
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I am finishing my second year as president and have one year to go. Up to this point we have been using the school's tax exempt # and have not filed anything with the IRS. At what point do we need to organize legally and get our own tax exempt # or are we okay with just using the school's #. If we need to do something what is our next step.
