We are researching switching from a PTA to a PTO. How long does it take to dissolve? Are we talking days? weeks? or months? Also, how long does it take to file for a tax exempt number to become a non-profit PTO? Since we are at the beginning of a school year, I'm afraid switching funds might get tricky. I would appreciate any other input. -Thanks

Bev,

We just recently switched from PTA to PTO at the end of this past school year. We made it where our PTA would be dissolved on the last day of our fiscal year which ends on June 30. We had virtually no problems. You just need to go by your PTA bylaws on how to dissolve. We are currently in the process of filling out the paperwork for nonprofit status. We recieved our Tax id # by calling and requesting one. You have 27 months, if I am not mistaken from the time you set up your organization the get your paperwork in. We are excited about the year and look forward to having a successful one!! If you have any other questions, Please feel free to email me! llmccutch@aol.com

Hi Bev -

Our FAQ on that question is at: http://www.ptotoday.com/ptofaq.html#3

llmccutch makes a great point about your PTO nonprofit status. If you're applying as a brand new organization, then you have time (not sure on exactly how many months, but it's more than a year) to get your nonprofit paperwork in. Provided that you apply and get approved within that time frame, then your nonprofit status is retroactive to the day you start operating the new group.

It is possible to keep the PTA legally alive while the funds in the PTA account are spent down. At the same time, you can start your PTO and your fundraisers can go into the PTO account and you can get the PTO legal paperwork going. That's often a nice way to avoid any money transfer complications. Once the PTA funds are down to near zero, you can more formally disband.

It's also possible (in most cases, check your PTA bylaws) when dissolving the PTA to donate remaining funds to a "similar organization" such as your PTO or an education foundation – provided the recipient organization is also tax exempt and meets IRS and any other federal regulations that applied to the original PTA.

Tim

If you want to go officially by your PTA bylaws, then the longest thing will probably be the different notifications of meetings and stuff before you can finally vote to disband. You're supposed to announce that you're considering it and give notice to the state office and do other stuff before you can have the vote. At least that's the way it was in our state. (Or you can just stop paying dues, lol.)

HELP!!!!! We also just switched from a PTA to a PTO. We are an EXTREMELY small group, hoping that the switch would bring about a change in attitude from our parents. Last year, we just voted and switched, however, we just received a letter from the President of the County PTA stating that all money belonging to the PTA had to be disbursed to another 501(c)3 and that she would be by to pick up our charter. I'm the new President of the PTO, and I am jumping into this with no prior experience -- I don't even know what the Charter is. We adapted our By-Laws from another posted on your site. The money (approximately $4,000) is to be utilized on the school, of course, but does anyone have any suggestions?? PLEASE HELP!!!!! So far, parents have been very positive, but should we stay a PTA for another year to solve this problem???

Spend the money on something for your school or for the kids? Buy a playground piece or pre-pay 8 performers or field trips. If this lady insists you did something wrong, then go to the newspapers and tell the reporters that the PTA wants to take away your kids' field trips or assemblies that you paid for with money you raised.