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Why can't we use schools tax exemption?

12 years 8 months ago #128360 by Rockne

mykidsmom;128349 wrote: I am apart of the rare PTO that is not 501c3 and uses our schools tax id.


Hey mykids --

That's actually not that rare. I don't have exact numbers, but I'd say 30%-40% of PTOs operate that way.

Tim

PTO Today Founder
12 years 8 months ago #128363 by pals
tim you are so right, in my district alone out of five parent groups we are the only 501, how many are using the schools number yet have their own bank account? In reality what the NYS dept taxation had told me is that isn't the way it should be done but basically no one has the time to track down parent groups...

"When you stop learning you stop growing."
12 years 7 months ago #128988 by volpeace
So, if we decide not to go the 501(c)3 route and want to be up-to-date with the IRS, what would our classification be? What label would the IRS give to us - unincorporated assn, business? Also, our school gets the PTOToday magazine does that make our club a PTO or is there a formal process to forming a "PTO". I'll go over to that section of this site after I finish this question. If we pull in more than $5000 gross then we are able to file for 501(c)3 status but if we don't want to then what do we want to file for? If we pull in more than $25000 gross (per year) then do we have to file for 501(c)3 or only to avoid the high taxes? So many questions and so little time!
12 years 7 months ago #129120 by MIami
Replied by MIami on topic Why can't we use schools tax exemption?

MIami;127748 wrote: How did any of these PTO's start without any funds and pay for their tax exempt status? Our group has had only one meeting and at our next meeting we will be trying to figure out if we want to be a PTA, PTO, PTSO, or PTO.


Please understand that if you choose to be a PTO, you are considered part of the school as are your funds that you operate from. Even if you have a separate account, your annual budget will be included in the schools audit. However, if you are PTA, you do not answer to the school...you operate to assist the children of the school which sometimes also helps the school itself. If you are PTA, your annual budget is not included in the schools audit because you are part of a national organization that does not necessarily answer to the school itself.

The cost - yes, there is a membership fee but what you get for that fee far outweights the cost. As someone already mentioned, the free training, literature, programs, etc....you couldn't pay for that with what little you pay National PTA and State PTA dues for. With PTA, you have regional, state & national people that can help you with whatever your unit needs. If you are PTO, it is up to you to find the help and answers you need.

To sum it all up...PTO is for your school & your school only and it is accountable to the school district. PTA is for all children - your schools and others and has resources to help members and officers both locally, state wide and nationally.

Thanks,
PTA MOM
12 years 7 months ago #129123 by dlf
PTA Mom
I am a PTO that doesn't answer to the school system at all. While you are correct that if you operate under the schools tax id etc you are not separate, I wanted to make the distinction that not all PTOs answer to the school system monetarily. We exist as separate entities but will often band together with other PTOs and PTAs to make changes/impacts in our community.
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12 years 7 months ago #129127 by Rockne

FB PTA MOM;129120 wrote: Please understand that if you choose to be a PTO, you are considered part of the school as are your funds that you operate from. Even if you have a separate account, your annual budget will be included in the schools audit. However, if you are PTA, you do not answer to the school...you operate to assist the children of the school which sometimes also helps the school itself. If you are PTA, your annual budget is not included in the schools audit because you are part of a national organization that does not necessarily answer to the school itself.


Thanks,
PTA MOM


Hi PTA Mom --

I can't answer completely right now (because I'm on site setting up for our biggest PTO Expo tomorrow, where we'll be helping more than 500 parent groups in person), but had to make a quick remark: the above is just plain dead wrong.

It's entirely possible (and it's the case for tens of thousands of PTOs around the country) for a PTO to be every bit as independent as a PTA. Some PTOs choose not to go that route, but it's entirely that PTOs choice.

Tim

PTO Today Founder
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