katnboo - You have my sympathy and my admiration that you stuck by your guns and took the initiative to homeschool your children if that's the best solution for them for now. Good luck in the future.
FYI - expanding a bit about the $5000 vs $25,000. IRS reps have told many of us that any organization earning more than $5000 per year should be filing with the IRS. I think that number is used as a rule of thumb in deciding "when are my group's finances big enough that it matters to the IRS." (I'm not sure if this is somewhere in the rules, or just a common sense guideline.)
When we first went through the process, the IRS rep working with us said if a group was at the $5000 mark, either it should get set up as 501(c)(3) charity or it should be filing a business return.
However, once a group becomes a 501(c)(3), then the rules for that specific type of organization go into affect. 501(c)(3) charities are only required to file an annual return (990/990EZ)if yearly earnings are greater than $25,000. The 990/990EZ is an informational return, and taxes aren't generally owed. Many groups file voluntarily even if earnings are less than $25,000 as a show of good faith and disclosure.
I understand your frustration. Bylaws are so important for this very reason -- they give all a reference point when disagreements pop up. The order (even a basic set of bylaws provides a framework) they provide actually helps encourage involvement, even though some feel that their informality is a key strength.
I hope you can be an agent for change and work toward getting your group's house in better order. It's good for all, even though you might be met with opposition.
Final note: kat, the "total receipts test" by the IRS is $25,000, not $5,000. Groups wiht less than $25,000 in totla receipts are not required to file an annual federal return (though it's not a bad idea to file anyway).
Update: I've "resigned" from our PTO, and will homeschool my kids until open enrollment next year. I've learned through many recent events that the PTO in this school is run just as poorly as the school itself...found out the PTO IS NOT in federal tax exempt status, and they also haven't filed tax returns, although their annual receipts are at least triple the minimum of 5K. Worse, the "ladies" running it don't care...they just want to "pour hot chocolate and bake cookies for our kids." Like I said, the school is just as bad, so I've washed my hands...and sincerely hope someone of a higher authority wakes them all up.
I'm looking forward to some replies on this subject [img]smile.gif[/img] As it appears that our "PTO" is in the same position at this point. With no by-laws, no mission statement, no nothing, how can ONE officer demand that checks be written for purchases, etc? I've posted on another subject today, but this one is also a BIG concern. I really need some good solid information on how to handle situations such as this. Should I tell the President that no more money will be taken out of the banking account UNTIL there are by-laws, etc in place? Thanks for any help [img]smile.gif[/img]
I think this will be best answered by someone like Critter, JMB or Tim. In any event, the first thing they are going to tell you is to get a copy of the Bylaws and the Mission Statement. So, while you are waiting on their replys, start digging!
On my own, I would say that in a perfect world, you should take everything to the general meeting for a vote. I would also say that the folks you elect to represent you should do just that: represent you. Every thing should have at least a 'Board' vote though.
While I believe that a Board is elected to make, and should make most decisions, several at our school did not. The gal who is now prez rallied a lot of support by telling folks that if they voted for her that she would make sure 'everyone saw everything' , that everyone would make decisions together on everything. Again, in a perfect world, this could be done. Fact is, that while she did get elected, the things she promised did not come to pass.
You can get your ducks all in a row and oust the current board at the next election by keeping track of everything that was done without the general members voting. It will work, even though those decisions may have been good ones.
The political aspects of taking a side in this referendum thing? I don't know of a single set of Bylaws or any Mission Statement (from a PTO/PTA) that would condone it. Again, you will need to have one of the more experienced gals answer on the subject.
Good Luck!
I'm new to the area, and was asked to be VP of the local PTO because I want to help. After a few short months, I can see the other officers are way out of control. I was just told we don't have to vote on expenditures, and in fact didn't ask me because they knew I'd disagree. This particular expenditure is in support of an up-coming school referendum. I asked for discussion at a scheduled meeting and was told "fine, the meeting's in 5 minutes, don't be lat." I have serious concerns about how our money is spent, and am wondering if there is anyone who does oversight...a way to ask for an official audit? Thanks for the help!
