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PTA to PTO - need to dissolve?

10 years 3 weeks ago #154404 by mum24kids
Amanda--Please list what state you are from, because if what you are writing is correct, the rules you list do not apply to all states. Anyone thinking about disbanding needs to check their local unit bylaws. Incorporation is generally done not through the PTA, but through a State Corporation Commission or some other such state government office. Also, in my state (VA) the dissolution provision reads as follows:
Upon the dissolution of this organization, after paying or adequately providing for the debts and obligations of the organization, the remaining assets shall be distributed to one (1) or more non-profit funds, foundations, or organizations which have established their tax exempt status under Section 501(c)(3) of the Internal Revenue Code.
I believe this is fairly standard language. Clearly, this does not mean that the leftover money must go back to the State PTA. The members of the local PTA unit can vote to decide what organization gets their leftover money.
10 years 3 weeks ago #154406 by Rockne
Just to further the point, 95% of the groups I've seen making this transition have wound up with zero dollars in their account before dissolving. So while that "you'll lose all your $$" is a common threat, it's almost never a factor.

For most parent groups it's not hard to spend the dollars down. Most groups don't carry much over from one year to the next and even those that do can fairly easily (on a one-time basis) either pre-pay some expenses or donate to the school or make a major purchase.... all before the official dissolution.


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9 years 10 months ago #155165 by kris
Replied by kris on topic Re:PTA to PTO - need to dissolve?
Our district recently have found out that we are not a 5013c and can your school individually become a 5013c or does the district have to do this as a whole? What do we have to do to become a 5013c? We are having trouble at this point getting donations and need this done asap if possible. Whom do we contact to get this going? Thanks
9 years 6 months ago #156446 by Anne
We are inthe process of dissolving our PTA and starting a PTO. We have obtained a new EIN and incorporated with the state, and are about to file the application for non-profit status for the new organization. My question is, since the transition is happening mid-year, will we need to file 2 tax returns for this year?...A final return for the PTA and a separate return for the new PTO? If so, what should be used as the cut-off date - the date the funds are transferred from the PTA accounts to the PTO accounts??
9 years 6 months ago #156464 by mum24kids
Anne--Yes, file two returns. If you actually disband the PTA and have a formal date of dissolution/termination of your relationswhip with PTA, you file a final return through that date. If you just let it run its course, you file a return through the end of whatever your fiscal year is. Your PTO return goes from the date of incorporation through the end of its fiscal year. Since the PTA and the PTO can effectively be running at the same time for some period, the dates of when one stops and the other one starts do not need to coincide.
9 years 6 months ago #156466 by NJPTAOUT
Replied by NJPTAOUT on topic Re:PTA to PTO - need to dissolve?
MUM24KIDS thanks for the helpful comments.

1. we carry a cushion every year so we want to be extra careful--we are not interested in giving our money to state

2. mandatory State bylaw provisions are unclear---
on the one hand they say you can transfer assets to another 501(c)(3) [of course assuming there is enough money left to pay outstanding bills] BUT on the other hand it says the State PTA can come in and grab your assets

3. has the PTA ever circulated a checklist or timeline for disaffiliation?

4. does any one know of the State PTA grabbing assets when all bills have been paid.

5. has anyone ever heard of the State PTA going after the new PTO for the transferred assets?

6. within the past 2 years are there any former PTAs that became PTOs abiding by the State PTA disaffiliation bylaw provisions?

6. Tim, have you ever heard of the state PTA intentionally putting up road blocks (other than an opportunity to present at the general meeting) when they were given notice that a PTA was thinking of disaffiliating?
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