We are currently a PTA that has voted to change to a PTO at the end of the current school year, thinking that would be a good time to make a clean transition. Our plan is to take any remaining funds in the PTA account and "donate" them to the new PTO. In preparation for the new PTO, we have created bylaws and articles of association (we are not incorporating). We have an EIN and are in the process of completing form 1023, which is where my question lies. Since the PTO is not operating yet, has no money, done no fundraising, has run no events, etc., how do we complete much of the info on the 1023 form? Do we just use info regarding the existing PTA activities? What about the balance sheet data, we have none? We want to make sure it gets completed right, but are at a loss as to how to complete it for an organization that is not yet in operation. Thanks.
Advice from PTO Today
Rockne writes: Hi -
Your application with the IRS should actually be more simple because of your experience rather than less.
Remember, most applicants are in the exact same boat as you (brand new) without the benefit of experience. The IRS expects you to give best-guess estimates, and you have the advantage of better best guesses. Your guesses on annual fundraising take and annual expenses will be pretty good.
The IRS isn't out to get you on this, and after a few years your actual numbers will be far more important than your guesses. IRS is just trying to get a feel for what you'll be all about.