WES_PTO - you don't want to go down the trail that makes you fill out schedule D. Backup a step to the set of questions that pushed you to schedule D. According to the IRS - from the times many of us asked when we did the paperwork - the category you want to select is the one that says:
Line 5h. Check this box if you normally receive more than one-third of your support from contributions, membership fees, and gross receipts from activities related to your exempt functions, or a combination of these sources, and not more than one-third of your support from gross investment income and net unrelated business income.
The way the IRS defines a supporting organization is very different and not what PTOs typically do. Once you get used to their language, if you think about it, this does indeed describe how we are funded. Most funds come from our ACTIVITIES and/or contributions.
Critter;134122 wrote: The typicial PTO is an educational org, not a support org. Since we do virtually all our work for the school, it sounds a little like we might be consideredd a supported org, but that 's not the IRS sees it. A supported org would be way more connected to the parent than the typical PTO is to the school.
We are also filling out our paperwork. Our PTO money was all handled by the school book keeper in the past. Being on our own will be easier when it comes to writing checks, but the paperwork from the IRS is raining on our parade. We were thinking it would be the other way due to questions in schedule D that really make it sound like educational means a school, not a PTO. Did you just leave blank or out N/A to the questions that did not apply to PTO? We are not getting much help from the CPA, but he's also not charging us. I'm getting to the point that we need to find a COA familiar with this form and pay him/her.
The typicial PTO is an educational org, not a support org. Since we do virtually all our work for the school, it sounds a little like we might be consideredd a supported org, but that 's not the IRS sees it. A supported org would be way more connected to the parent than the typical PTO is to the school.
Since you all are talking 1023, can you please help me? I'm completing ours right now and I'm wondering if anyone can tell me if we file under "educational" or "support org"? Thanks for any help!
We listed things like this separately in an attachment, saying that the goal was not to raise funds, but admission was charged to cover expenses and we sometimes turn a modest profit. I am not sure we had to break it out, though.
If you don't expect too much from me, you might not be let down. <img src=images/smilies/smile.gif>
Do you mean the 1023 application for exempt status, or the 990 which is the annual "tax" return form?
If you set up the event with an admission charge that brings in more income than you have expenses, why wouldn't you consider that net profit as "fundraising"? You don't have to advertise the event as a fundraiser per se, but why is that profit any different technically from funds raised thru a wrapping paper sale, for example? Or maybe I'm reading this wrong. Are you saying you charge admission PLUS allocate more PTO money to cover all the costs?
It's been a while since I've done the 990 (getting another chance in August!), but I think I remember that form asks you to separate all income from all expenses. No netting. I'm not sure any of this babble helps answer your question. Maybe you could elaborate which form you're wrestling with.
