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State Licensing

9 years 5 months ago #166242 by mum24kids
Replied by mum24kids on topic Re:State Licensing
It's possible this answer may vary by state, but I don't think so. There are all kinds of groups out there that charge dues to cover expenses and don't have any regulatory oversight--even some PTOs (although usually smaller ones). They're usually referred to as "unincorporated associations," and can apply to get a taxpayer identification number from the IRS so they can open a bank account and conduct business. It's not much different from, say, your local soccer team that collects a certain sum of money from all the parents each season to buy uniforms, play in tournaments, have a team party and maybe buy some team equipment.
9 years 5 months ago #166238 by Ginny
State Licensing was created by Ginny
IN our town we have individual PTO's for each school as is normal. We also have an umbrella "PT Council" which brings together the exec boards from each school to go over issues that effect all schools in town. This org does not fundraise. It does collect dues from each PTO which covers basic expenses for meetings and also money that goes to scholarships. It has its own exec board and by-laws.

Question: Does this organization have to be licensed by the state. Is it allowed to collect dues without registering as a nonprofit?
Thanks
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