My first question would be, how do you plan to pay for filing the 501c3? When I did it for our newly-formed PTO in January, the fee was either 450 or 850, if memory serves me correctly - it depends on your anticipated revenue for the first 4 years. The IRS has had an online filing system in the works for a few years. If they ever complete it, my understanding is that the fee would be reduced to about 250; however, when I asked an IRS representative about how soon that would happen, I was pretty much told not to hold my breath.
We were fortunate that there were some funds left in the old parent group funds, and the superintendent passed those on to us to help us get started - mainly to pay the filing fee.
If you plan to seek large donations, having 501c3 status is helpful in that donations can then be tax-deductible for the donors. This has helped us secure donations and get a grant. It took about 3 months for us to get approved. But, there are a lot of responsibilities that go along with it. One must keep good records (which I'm sure you're doing already) and must submit a 990 on 990-N each year.
Do you have someone who has some nonprofit experience that can help with filing the Form 1023 (application for tax exempt/501c3 status) and with running the nonprofit, if you choose to apply?
I had previously led a nonprofit, so I've had experience in running one; however, none of our other board members have, but they are real go-getters and passionate about making a difference in our school.
My opinion is that passion cannot be learned, but everything else can.
- bethanysmom
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