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

501(c)(3) Basics for School PTO Groups

 

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.

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.



Still have questions? Call us at 800-644-3561; we’re here to help.