Free Webinar: 501(c)(3) Basics for School Parent Groups

In this free webinar on 501(c)(3) basics for school parent groups, you'll learn best practices for becoming a tax-exempt nonprofit group with the IRS (and maintaining that status), get access to helpful resources, and find answers to questions submitted by other parent groups.

Taxes can be complicated, but they’re a fact of life! If your head spins thinking about the IRS, tax-exempt status, and what it can mean for your PTO, watch our webinar on the what's, why's, and how's of federal tax-exempt status, incorporation, and other frequently asked questions.

What’s Covered in the 501(c)(3) Basics Webinar:

The Difference Between 501(c)(3) and Incorporation

Your group can have federal 501(c)(3) tax-exempt status without being incorporated as a nonprofit at the state level. You can also be incorporated in your state and not have federal tax exemption. But it’s a good idea to do both—and if you do, there’s an easier way (and a harder way) to do so.

5 Recommended Steps for Becoming a 501(c)(3) Group

From applying for an EIN to keeping your determination letter safe—and then applying for tax exemption within your own state—we’ll walk you through the steps in the right order.

Annual Tasks for Tax-Exempt, Nonprofit Groups

After you’re granted tax-exempt and nonprofit status, there are a few things to do each year to keep your group in good standing with the IRS and your state.

How Your Bylaws Fit Into All This

Your bylaws are the key document for running your group day to day; if you have a question about what you’re allowed to do, check your bylaws.

Resources From PTO Today

Links to additional guides and articles to learn more about the topics covered during the webinar.

More Information

Download a PDF of the webinar slides, learn more about parent group insurance, and read the extended Q&A addressing frequently asked questions about setting up a parent group, EINs, incorporation and 501(c)(3) status, completing the Form 990 series annual returns, raising and spending money, and donations.

What Is 501(c)(3)?

“501(c)(3)” refers to federal income tax exemption under the IRS tax code; it applies to charitable organizations such as school PTO and PTA groups. The IRS also refers to these groups “exempt organizations.” 501(c)(3) tax exemption is often confused with nonprofit status, but the two designations are distinct—while 501(c)(3) status is a federal designation from the IRS and refers strictly to federal income tax-exemption, nonprofit status is related to incorporation, which is a state-level process.

The benefits of becoming tax-exempt:
• It shows your community that your group takes itself and its mission seriously.
• Donations to your group are tax-deductible for the donors.
• Many grants from businesses and other nonprofit organizations are open only to 501(c)(3) groups.