Thanks for the info. Our PTO has our own bank account, but we can't do a thing without approval of the principal. Despite having officers, I really don't feel "independent," if you know what I mean, but that's a whole other topic. Thanks again for the help. We need all we can get!

The IRS can be very helpful. Try their number specifically for tax-exempts at 1-877-829-5500. The first thing you need to determine is if your PTO's tax id number is really registered to the PTO. I was told we had one, but the IRS informed me that it really was the school's number. You can get a new one over the phone, no charge, by calling the IRS.

Also, does your PTO actually function as an independent parent group, or is it more an extension of the school? For example, do you have a PTO bank account, or does the money run through the school's accounts? Does the principal make all the decisions, or do you elect your own officers? Your group needs to operate as an independent organization before you need to worry about the IRS. Assuming your group is an independent parent group, then you are doing the right thing researching non-profit status. Those who told you this was overkill were just uninformed.

Also, call the IRS's forms ordering line at 1-800-829-3676 and order a (free) copy of Publication 557 "Tax-Exempt Status for Your Organization", Form 1023 and its instruction packet (this is the application for non-profit), and while you're at it, order Form 990-EZ and its instructions (the form you need to fill out annually once you are non-profit). It's also a good idea to check with your state's department of commerce (or similar) on incorporating in your state. The best place to start is your state's website. Many PTO's choose to incorporate before filing with the IRS so they get the officer liability protection that incorporation often provides.

PTO Today has a Getting Started guide that addresses your questions. It's included with membership in NPN (see tab to the left). Another resource is the magazine's archive of articles, also accessible from the website. If you have back issues of the magazine, you might want to read the October 2003; there's a story about this very subject in the Treasurer's Report column.

I'm sure others will chime in with more advice. Hope this is enough to clear up some of your confusion.

Okay, I have read all the posts on tax info that I can find here and I am still confused. I am a new PTO pres and am trying to do things right. There were no bylaws, no tax exempt forms or incorporation papers filed. We do have a tax ID#. I don't think the previous group ever filed any tax forms even though they raised $40,000 at one point. They said because they raised it then spent it, that tax forms didn't need to be filed. I am thinking that is incorrect. Can anyone out there give me a clue? I am calling the local IRS next. Thanks for any help.