Question: Non-profit

Is it legal/usual for a PTO to become a non-profit organization?

Asked by Anonymous

Answers:

Community Advice

sigrhoangel writes:
This is our first year to be a NPO. Unfortunately, our School Board of our county made some decisions last year and decided that the PTO's of our county could NOT use the school's Tax ID's and would therefore have to put all monies in the school's account! EVERY decision made about the PTO money would have to be APPROVED by the principal! We decided to go ahead and incorporate and get our own Tax ID, deciding AS A GROUP what we would do with the money we raised. EVERY DIME goes back to our school, but we would probably be a lot quicker with decisions about where this money should go.

Community Advice

JHB writes:
If a PTO is operating as an independent entity with its own bank account, raising funds, making its own operational decisions (which the case for most), then "yes", it's expected/legal/desirable that the organization be formally set up as a non-profit entity recognized by the IRS. However, if the PTO is more like a committee of the school and the school officials have final say on activities/funds, then "no", you are just part of the school. Either way, that's not to say the other doesn't get any say. The PTO and school need to work as partners to have successful events and programs.