501(c)(3) is a big topic, so you may need to narrow down what information you want (and we may need to move this question back to another area). Also, if this gets more detailed than what's appropriate for the Forum, feel free to email me directly. On the 501, regarding liability, the lawyer at the show was very clear. 501 is great for credibility, allowing deductiblity of contributions for the donor, may be required for seeking grants, might offer other perks like non-profit postage rates, etc. However, it has nothing to do with liability or reducing liability. If you want to know more about the PROCESS of filing for 501(c)(3), I've posted quite a bit of what I learned at different times on the Forum, and I'll be glad to share more if I know what you need.
We completed the process in November, and I really didn't find it that bad. Again - disclaimer - I'm not a lawyer or CPA - just a regular person learning as I go through good faith effort.

(For what's already been posted, you may want to do a key word search, maybe using "501". Also, a "best kept secret" on this Forum is that if you choose the Profile of a participant, there's an option "search all posts by this participant". I tend to post a lot on the management/infrastructure issues so you can see what all I've said before.) But, again I'm no expert - it's the collective knowledge and experience of this group that really helps.

Regarding the incorporation, I called our Secretary of State's Office yesterday. They do rather talk in circles, since they are so concerned that anything they say NOT be taken as legal advice. However, the lady was as helpful as she was able to be. Our state rules will likely be a bit different from yours. It's a two page form with various attachments required. I figure I'll just slog through it and figure it out as I go.

Let me know if I totally missed the answer you were seeking.

Would you care to tell me more about what you found out about the 501(c)(3)? Also, if you have found out anything about the Incorporation reporting requirments.

We discussed this stuff earlier.

I followed our agent's (attorny) advice, and have talked to the state representive's office to get the last couple of years papers so I could file and get us back up to date. A person that I talked to told me to re-file. It would save money. When I asked him questions, he would answer with "this didn't come from me". Not much help.... Made me confuse and not know where to turn.

Thanks in advance,
Krippe

Great show - for me, one of the best sessions was the chance to ask questions of a lawyer and an IRS person. My research had gotten mixed results regarding liability and the need for incorporation and/or insurance. It still boils down to looking at the risks and individually deciding what is necessary, but at least I feel I have the facts now. Listed below is a recap of what I learned:

1) The Volunteer Protectin Act of 1997 offers some assistance. However, it doesn't really provide protection against lawsuits but more a viable defense if you are sued (and if you did everything right).

2) School's insurance policy - many well-meaning school staff will tell you that PTO events held on school property are covered. This may or may not be true. Be sure YOU personally see the policy.

3) 501(c)(3) status - great for many reasons, but does not have anything to do with reducing liability.

4)Incorporation - handled at the state level and makes the organization a single legal entity rather than a collection of individuals. So it moves liability away from the officers as individuals. To me, this seems very worth pursuing. In our state, it's a $25 fee and 1 or 2 page form to fill out. I just need to check on annual reporting requirements and make sure they aren't too burdensome.

5) Association or Event Insurance - I talked to many PTO representatives who DO get this. One person told me they pay $80 per year for a policy. For us, I think this is worth exploring, once I find out what the school's policy really does cover.

Much appreciation to Sandra Pfau Englund (nonprofitlaw.com) and Steven Pontrbriand (IRS) as presenters. Thanks again for the show! It was great.

[This message has been edited by JHB (edited 03-02-2001).]