Question: is 501c3 benefit for our school?

Hi On benefit of our home school association, we were wondering if filing for a 501c3 would be beneficiation to our school? We know there is a lot of paperwork involved, but wondering if its worth it in the end...anyone out there with pros and cons? Thank you so much for any information

Asked by mae1019



Advice from PTO Today

Craig writes:
There are two basic questions: Is what you are doing now working for you, and does it meet IRS rules? If the answer to both of these is yes, than I wouldn't recommend changing.

There are two ways to operate that pass IRS rules. One is to be a committee of the school. The money goes into a school account, and your group isn't a separate business entity (you don't have a separate tax ID number, for example). The second is to operate as an independent entity with 501c3 tax-exemption from the IRS.

Here's an article that explains the advantages of filing for 501c3 status in more detail: 501c3 for PTOs.

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