Sharing and Caring;142357 wrote: Our school district recently told our PTO that it can no longer be a part of our district. We currently use the district's EIN, sales tax exemption, etc. We are looking into 501(c)3, but has anyone had success getting its own EIN but not filing as a charitable organization (501c3)? Is filing as another type of non-profit or as a small business with little or no net income a viable option?

I have recently done intense research on EIN, 501c3, Incorporating and Insurance. First thing you need is your own EIN# very easy to do. Internal Revenue Service can help also PTOtoday.com has this step by step info. As far as 501c3 deadline-it is 15 months after you have created your 'Document of Organization' signed and dated by officers with another 12 grace period=27 months. If you do not have a Document of Organization you are not recognized as a running non-profit by the state or IRS. If you need specific help with this email me @ This email address is being protected from spambots. You need JavaScript enabled to view it. i have all info you could possibly ask...lol

barb_r;142362 wrote: I know from having started the process that an EIN and a "501c3" status are not the same thing. You can apply for an EIN without applying as a 501c3, how ever if you want the 501c3 status there is a time limit (6 months I think) that it needs to be filed for from the time the EIN/Incorporation papers are granted.

I have recently done intense research on EIN, 501c3, Incorporating and Insurance. First thing you need is your own EIN# very easy to do. www.irs.gov can help also PTOtoday.com has this step by step info. As far as 501c3 deadline-it is 15 months after you have created your 'Document of Organization' signed and dated by officers with another 12 grace period=27 months. If you do not have a Document of Organization you are not recognized as a running non-profit by the state or IRS. If you need specific help with this email me @ This email address is being protected from spambots. You need JavaScript enabled to view it. i have all info you could possibly ask...lol

The EIN is simply your tax ID number. It can be requested over the internet/phone. Very simple. No fee. It has nothing to do with the type of organization you are. It's a one page form that consists mostly of contact information. (SS4).

As far as type of organization...

If you have less than $5000 gross income per year and follow all the rules of a 501(c)(3), then you can claim to be one by definition. So the good news is that
small, informal operations can exist as charitable organization without much setup effort. Technically, you'd be an IRS Tax-Exempt entity, so should qualify for the benefits such as donations to your group being deductible. But the problem is that donors can't easily verify your status as the IRS doesn't really know you exist.

I had one group go that way. We focused most fundraising and donations to the school (with agreement beforehand as to how things were allocated). So, for instance, if we were rounding up food donations from local restaurants for teacher appreciation, it's really no big deal whether they think of the food as being donated to the school or to the PTO. It serves the same purpose either way. The same could be said for running a fundraiser or soliciting monetary donations.

However, we didn't even bother to apply for state sales tax exemption as here we'd need to provide a 501(c)(3) determination letter. And our sales tax expenses weren't big enough to really matter.

Previously, as such a small organization, you'd never file anything with the IRS. But now that they've created the e-postcard filing, you'd file that as an annual return. (About 10 simple questions.)

I've never actually seen it done, but theoretically you could exist as a business, but you'd need to file a corporate return. And you wouldn't be eligible for tax exemptions and donations to you wouldn't be deductible.

I know from having started the process that an EIN and a "501c3" status are not the same thing. You can apply for an EIN without applying as a 501c3, how ever if you want the 501c3 status there is a time limit (6 months I think) that it needs to be filed for from the time the EIN/Incorporation papers are granted.

Our school district recently told our PTO that it can no longer be a part of our district. We currently use the district's EIN, sales tax exemption, etc. We are looking into 501(c)3, but has anyone had success getting its own EIN but not filing as a charitable organization (501c3)? Is filing as another type of non-profit or as a small business with little or no net income a viable option?