My question is this not to open a can of worms but all of these questions about taxes, filings, IRS have really got me to wondering. Is it worth to have a PTO? What happens we go through and set-up all of these forms, filings, etc., etc., and then it's never kept up who looses in this case.
The children? Why can't the PTO just run under the umbrella of the school. Everything we make (fundraising) goes back to the school anyway. No money is given anywhere else but back to the school. Just wanted to throw my thoughts out about this. Our PTO is a strong one but no tax exemption certificate, no 501 (3) c have ever been filed no 990's have ever been filed. We carry a balance of $4,000.00 for the next year. Yes, we have By-Laws and Active Officers. Little parent involvement but we hold our own and they come through at the end. We not CPA's, Accountant just parens volunteering to make money for more activities for the kids.
<blockquote>quote:</font><hr>I was wondering if they should apply for a tax exempt number or should we just funnel all our groups thru the PTO so that everyone in the building then would have tax exempt status thru the PTO like I said earlier I do know that alot of schools do it this way I was just wondering if this would be the correct way to do it. Also thanks for the link
website I will try it. Take Care
Robin Mattydale, New York<hr></blockquote>
AH HA! Okay, now I understand the original question. If you want to funnel the money through your group, thats entirely up to you. Just make sure that someone is keeping close track of what belongs to whom. You might want to have an informal contract and have these groups sign receipts every time they turn money over. I'm sure their are audit issues, as long as you include this as your income and your expenses, it shouldn't be a problem if you file 990. We are a PTA, and PTA frowns on this, but........last year, our 6th graders had to raise money to charter buses for their trip to six flags(we have a terrible bussing shortage), they did a few fundraisers and we "funneled" their money for them and cut the checks to the bus company so no tax had to be paid. I know, what about the insurance issue. We were already full tilt into it anyway because it is PTA money that buys the theme park tickets! So we would have already been a plaintiff.(always thinking ahead)
About the PTO shows, I actually wanted to go, as the New England show isn't to far over the border(it gets a little hairy when you cross into red sox country) but I will be away at a horseshow. I would suggest going though, I have been to many PTA conventions and have learned alot and made some great contacts. It's always great to hear someone elses fresh ideas.
Thanks for getting back to me on my question.
We do have a tax exempt number which I use when we buy from a store for the school. I have also
given this to our fundriaser person who we are doing the fundraiser thru - I do realize that
the 501c3 is federal - but thanks for confirming that back to me. I also know that NY is a hard state and yes they want their money whenever possible. The reason why I was questioning about the cookie dough and the entertainment books was because the NEW YORKERS which is a club at our middle school does not have tax exempt status and was told by our assembly man(the past one) that they could not apply for this or shouldn't so they never did and now they file quarterly for their sales tax. I was wondering if they should apply for a tax exempt number or should we just funnel all our groups thru the PTO so that everyone in the building then would have tax exempt status thru the PTO like I said earlier I do know that alot of schools do it this way I was just wondering if this would be the correct way to do it. Also thanks for the link
website I will try it. Take Care
Robin Mattydale, New York
By the way was wondering if you were going to be making it to the PTO SHOW I was thinking of going in March with a couple of other girls but we are still not sure if we will beable to make it.
First, you should understand that 501(c)3 is a federal tax exempt status that has nothing to do with sales tax. It is based on your groups income.
Sales tax is controlled by your state. You would need sales tax exemption from your state, which I'm guessing you don't have. Being you are from NY, you know that Governer Pataki wants his 4% and whatever county you live in probably wants a % on non-perishable goods such as giftwrap and chachkas. You are ok on the cookie dough as it is a food product, and NY does't tax that (yet). I really don't know about the entertainment books, but the fundraising company should know.
Your problem isn't whether to charge sales tax, but if you are not tax-exepmt you have to pay sales tax. In NY, most businesses pay quarterly. I would wait until you get your 501(c)3 status from federal and then apply for NYS tax exemption. I tried to find the link, but as usual, NY gov webste is down. This is the general page, just find the link to tax dept. www.state.ny.us
I was wondering if anyone could help me out with this one. I am the PTO President at our Middle School my treasuer and myself have been doing alot of checking into 990 and 501(c)3 filing which we intend on doing this year. My question though is are we suppose to be paying sales tax on our fundraisers. We are a nonprofit organization but do not have the 501(c)3 status yet. We have always done fundraisers here at our school two actually one in the fall and another in the spring. We do not charge sales tax but are wondering if we should be. The other question is
we have student council and the new yorkers club
they both do fundraisers each year wether selling cookie dough or entertainment books they have their own accounts set up so they do not go thru the PTO bank account. They do pay sales tax though on everything that they do being that they are not tax exempt.My question to this one would be could they go thru the PTO and save on paying
the sales tax being that we are tax exempt or should they look into putting in for a tax exempt status.I do know that other schools in our area do filter thru for other groups in their schools but was wondering if other schools out there do this also. Thats funnel funds thru the PTO and etc. Hope someone out there can help and I also hope I was not to confusing on my questions
Thank you
Robin
