Form 1023, Part VI, question 2 asks:

Do any of your programs limit the provision of goods, services, or funds to a specific individual or group of specific individuals? For example, answer “Yes,” if goods, services, or funds are provided only for a particular individual, your members, individuals who work for a particular employer, or graduates of a particular school. If “Yes,” explain the limitation and how recipients are selected for each program.

The PTO Today StartUpToolkit (pages 31-32) says that we should answer No to this question,
No. The typical parent group would not be
selective in this way when providing goods, services,
and funds.

But aren't we being selective by providing services only to students and teachers of our particular school?? Note the question gives "graduates of a particular school" as an example.

I would be interested in the answer to this question also. What we do is (for the most part) to benefit our school community (teachers, parents, students, siblings), but the general public also comes to see our shows (one of the many projects we sposor or support).

My first answer is that hundreds and hundreds of parent groups have used the guide and flown successfully through the approval process with the IRS.

My second answer is: interesting question. Let me see if we can get clarification. If you're in a rush, you can call the IRS nonprofit help line. They're good.

Tim

Checked with our editors and I'm told that our recommended answer came directly from the IRS. That question is asking whether you're set up to help Sue Smith with her cancer treatment bills, for example. A school or parent group isn't by definition limited in this way (membership/attendance is available to a broad-based population), so the answer is no.

Tim

I spent alot of time talking to the IRS about the 1023. I got the impression from the reps that simpler is better, and the typical PTO is a very simple non-profit model. Don't read too much into the questions. Remember that the form has to work for national organizations like the Red Cross, and little groups like Acme School PTO. When in doubt, keep it simple. Or call the IRS for clarification. I found them to be very helpful - not deserving of the reputation.

Actually, on the last form I helped complete, we answered "yes" to both 1B and 2. Answering "yes" requires you to document an explanation, but that's easy enough. We just created a Word document and kept adding sections every time we had to attach more info. This may not match exactly, but you'll get the idea. I'll paste in a big section of the document.

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[FONT=Arial]XYZ PTO [/FONT]
[FONT=Arial]EIN # xxxxxxxxxxx [/FONT]

[FONT=Arial][/FONT]
[FONT=Arial]Attachments Included:[/FONT]
[FONT=Symbol]· [/FONT][FONT=Arial]Constitution[/FONT]
[FONT=Symbol]· [/FONT][FONT=Arial]Bylaws[/FONT]
[FONT=Symbol]· [/FONT][FONT=Arial]Conflict of Interest Policy[/FONT]
[FONT=Symbol]· [/FONT][FONT=Arial]Membership form[/FONT]

[FONT=Arial]Part IV Narrative of Activities[/FONT]

[FONT=Comic Sans MS]{this was the section where we listed the activites and % of effort}[/FONT]


[FONT=Arial]Part VI Your Members and Other Individuals and Organizations that Receive Benefits From You[/FONT]

[FONT=Comic Sans MS]1B Benefits to Organizations – XZY PTO exists to support XZYZ Elementary School. The PTO provides volunteers, coordinated extracurricular activities, supports school programs, and raises supplemental funds for programs, equipment, and services that benefit the school, its students, and teachers.[/FONT]

[FONT=Comic Sans MS]2 Programs/Services Limited to specific individuals – Those who join the PTO as members are eligible to vote, run for elected office, and receive a free copy of the student directory. Otherwise, as stated above the PTO programs and services are targeted towards XYZ school and intended for all its students, families, and staff. The majority of activities are intended to benefit the entire school population. [/FONT]