I am in the process of completing our form 1023 - we are converting from a PTA to a PTO. I just looked at this link "Where is my Exemption?" http://www.irs.gov/charities/article/0,,id=156733,00.html and it is showing that they are processing applications from Sept. 2011!! Has anyone applied this year? If so, what was your turnaround time?

Our EIN is done, bylaws are done, waiting for certification of Articles of Incorporation and finishing everything else on the 1023 form.

My concern is that we have an auction scheduled for October that all items are donated. I understand the certification is retroactive, however if companies are donating in 2012 and we don't receive certification until 2013, will they still be able to write off donations for the 2012 tax year?

I wouldn't worry too much about this. Unless you really, really screw up your application, the probability that your application falls into the category of one that needs to be assigned to an agent is pretty low. I last helped someone with a 1023 about a year or so ago, and it was definitely turned around well within 90 days.

Companies can write off donations of stuff to auctions by classifying them in a number of different ways, not just as charitable donations. So some companies will just donate regardless of your official status (and just deduct it as a marketing expense or something). Your bigger issue is that some companies will just not consider you for a donation unless you can document that you have 501(c)(3) status. So just focus on doing a good job on the application and getting it turned in ASAP. If you haven't purchased the PTOToday start up tool kit, which takes you through how to fill out the 1023 step by step, I highly recommend it.

Thanks for responding! Our 1023 packet will be in the mail tomorrow, after I make several copies to keep just in case! The PTO Today Startup Toolkit, and this website, have been super helpful!

We applied (and was approved) for 501 status this past school year. we applied in August 2011 and everything was finalized in March 2012. Our determination letter states that our status became effective in August 2010, which is when we filed our articles of incorporation.

Hi kvgksg,

So glad to hear the Startup Toolkit helped!

Rose C.
Community Manager

Just an FYI - we received our approval today!! It took just a little over three months. I did not receive any questions or concerns about it! Sent 6/13/12, received 9/19/2012. Effective date is listed as 6/9/2012.