I have given alot of thought as to how to make sure that there is some continuity within the PTO so that the proper IRS and state filings are completed on an annual basis. People coming into the job need to understand how important it is to make sure this is taken care of. It is not that hard if it is kept up on an annual basis. I am the treasurer and have taken care of all of the filings (articles of incorporation, Form 1023, registration in the state, etc.). None of this had ever been done even though it should've many years ago. I put together a binder for each board member and the principal that contains all the organization documents. I will do all the filings for the first year so there is something to follow. I also plan to offer my services to review the forms in the future. I have identified at least 5 other parents at the school who I know are accountants so I plan to try and recruit one of them as the next treasurer. I have talked to the school board and the school administration about getting the CPA's that audit the school district to offer review services at a discount. I try to politely bring up how important the PTO's are to the schools and that bad PR due to tax and legal issues for a PTO would not reflect well on the whole school district.
Good luck.
Oops, forgot to answer your question. To verify your Federal EIN I'd suggest you call the IRS Exempt Organization customer service toll-free line at 1-877-829-5500.
Their hours are 8:00am - 9:30pm EST Monday-Friday.
They can look it up and help you to find out if you are in the system and how.
You probably also have an ID number at the state level. At least in Texas, this is the federal EIN with a couple check digits stuck on the front and back, so they are related.
We were exactly in the same boat as you a couple years ago. It took a little persistance and digging, but we got where we wanted to be. Along the way we found out we were using the wrong Federal ID #, our state tax exemption was accidentally voided (..."oh, there are no fees, just file all the paperwork again" Gee, thanks.) and we went through the process of getting our 501(c)(3).
While I think professional help (CPA/Legal) is always a good idea if you have access to it or if you are in a tricky situation, its not an area we wanted to spend funds on for routine matters. We just figured it out ourselves and found the IRS reps and the state offices to be very helpful. A lot of us have posted information on this forum about the process - and I even listed our whole application, field by field.
As far as passing on the information, I think we just do the best we can. For us, the school is the true vein of continuity. We've implemented cash control processes, reimbursement procedures, etc. This, as well as the tax filing information, will be passed down with the treasurer's records. If we make more than $25,000 (gross), and we do, then our organization needs to fill out a 990 or 990EZ each year. It's really not that difficult.
ablount, I know it can be a pain to pass on this information but we have never dreamed of asking anyone to take this position for 6 years. In most of our PTA units bylaws, you may only keep the same position for 2 years. Though things sometimes get lost in the shuffle our treasurers take care of all that and pass it on sometimes yearly. Even though our 501... is carried through our State PTA offices we have had qualified parents offer to set up some of our boosters 501s. We also do not need a CPA or accountant. I guess like everything it depends on the individual needs.
Yes I am most definitely interested. However, I am the treasurer at my church and this is an 501C3, we are not required to file tax forms or need a CPA unless we request one. Why then would a PTO which is a 501C3 require such? Remember, I am new to all this and could be talking out of my hat (not that I wear one). Any help would be greatly appreciated. Thank you for taking the time to reply.
Here's my story! I spend at least a year asking your question! We are small, too.
I am finally finished with all of it. The reason there is so little information on this subject and its SO HARD to do it is this: PTO officers change, but all the legalities you are about to take on must be kept up with from now on. In other words, after you move on and another person takes over, it will be impossible to pass on all the information and have them keep it up. If they do, each year it will get harder for the next president. It's complicated!
Since I am the director, I will be here and am willing to receive information and keep up with the yearly paperwork/tax filing that is required. So the first step is to find that person that's willing to make a commitment for 6 years to be 'in charge' or responsible for it.
You will need an attorney's help. My husband is an attorney and I can tell you
what he did. You will also need a good accountant or CPA. We paid a local CPA, but here again, you might find a parent or other person who can help you.
There are several steps we went through. I would be glad to share them with you. Let me know if you are interested.
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