Hi,
Our PTA wants to change to a PTO because we have a very low membership & we want to keep the money for the kids. Does anyone know how we go about changing over? I heard that if we have any money left in our account we have to send it to the PTA. If this is true, we will find a way to spend it! If anyone can help, please let me know.
Thanks!

Hi wertrips -

Start here: http://www.ptotoday.com/ptovpta.html

And if you have any questions afterward, come on back and ask away.

Tim

Our PTA wants to become a PTO - why is it that we cannot simply amend our articles of inc - instead of creating a whole new entity? PTA is always telling us we are our own separate corporation....our state bylaws talk about dissolving a unit (not disbanding) and we have no intention of dissolving our corporation...I am confused

Hi mpk -

There's not exactly volumes of legal precedent to go on here -- the comings and goings of PTs v PTAs isn't exactly a high priority for the legal minds around the country.

I suspect some of what you suggest is doable, but -- like I said -- there's no clear/definites on those questions. And i'm not an attorney.

That's why I suggest that simply disbanding the PTA and starting up an entirely new PTO is the cleanest/easiest way to go. It's extremely clear the steps involved, if you go this way. And clarity can be good.

A couple of observations:

1. As a PTA, your 501c3 status is wrapped up in your PTAhood, so -- when you go PTO -- you will need to get your own 501c3 approval.

2. It's in the incorporation area that you may have a point. Your incorpoartion as an entity is yours/not wrapped up with your PTAhood. You *may* be able to just go through the name change process with state for that part. However, there's a chance that the 501c3 thing may complicate that.

Again -- these gray areas are why I typically suggest the wind down PTA/ new start PTO direction. No gray.

If you do go your direction, i hope you'll share what you learn/experience.

Good luck,

Tim

Thanks Tim,
I have actually been through a process similiar to this -- I was with a co-op preschool that disaffialted from a community college -- and they also made all sorts of legal threats -- that all proved to be untrue -- we were able to simply amend our artciles of inc and write them out -- it had no affect on our 501c3 status at all. I will contact the IRS to look into that area and we have retained an attorney pro bono. I will keep you posted.
Thanks again!

Originally posted by mpkmom:
PTA is always telling us we are our own separate corporation....our state bylaws talk about dissolving a unit (not disbanding) and we have no intention of dissolving our corporation...I am confused This is not exactly true...
Unless you've filed your Articles of nonprofit incorporation papers with your state.
We're not a nonprofit corporation in California even under the PTA umbrella.
We must file Articles of Nonprofit incorporation with the state, then the IRS gets the Articles plus bylaws plus that long form (1023) I think, plus $500 for 501(3)c.

Now if you are trully an incorporated nonprofit- a name change is just a matter of paperwork, in most states.

I dont know about the IRS status though.

[ 02-19-2006, 06:32 AM: Message edited by: Shawn ]