Question: IEN to 501c3

If our PTO takes the step to have our own EIN number are there any reporting requirements that would cause? I think it would be quite awhile before we would be ready to move towards 501c3. Is that an OK status to have while we grow for awhile?

Asked by KA_4



Advice from PTO Today

Craig writes:
The official answer is that you would be in a kind of limbo -- independent but not tax exempt. The IRS wants all PTOs to move toward 501c3 status. You actually have 27 months to apply. If you apply within 27 months of getting your EIN (or incorporation papers if you elect to go that route), the tax-exempt status, once approved, is retroactive. There are reporting requirements that go with being a 501c3, but they're not particularly difficult, especially if your group is small.

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