Advice from PTO TodayRose H writes:
Yes, they are non-profit in that they don't have shareholders, etc. (You are not set up to make money, in other words.) But, there's a distinction between that and having tax-exempt status from the IRS. In that case, PTOs officially file for and become 501c(3) organizations, are recognized by the IRS, and file specific tax documents each year (990 EZ). One big distinction that is often discussed is deductions. When your group is a 501c(3), parents and others can deduct their contributions made to your group.
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