Rockne - I think you mean "NOT be bringing any more funds into the PTA account."
And remember that a new non-profit has up to 27 months after its establishment to file for 501c3. So...namaxe17, you don't need to rush or panic about the 501c3 application. But you should get your new PTO's own tax id number asap (download form SS-4 off www.irs.gov
to get started).
I think it would be legally fine if you're PTO is already established and has already applied for its 501c3.
If you haven't done those two steps yet, then another (perhaps simpler) option would be to donate those dollars to the school with the tacit agreement that the school will provide your group seed dollars once your established.
Third option: if you have any remaining "fund- bringer-inners" this school year, operate those last few items by your new PTO. All it would take is to get your EIN number (simple, 1-day process with IRS) and get a bank account. If you're going to make the transformation, then I certainly wouldn't be bringing any *more* funds into the PTA account. Every dollar in will just have to be dealt with during the change process.
Another possibilty: if you have someone with the means to afford this, a parent/supporter could loan the new PTO the $500 to be reimbursed as the new PTO gets on its feet. Keep a paper trail of that and you'll be fine.
Finally, remember -- technically you're not changing your PTA to a PTO. You're (possibly) shutting down a PTA. And (different process) you're establishing a new PTO. It's perfectly OK if those two processes overlap (ie -- your PTO is started before your PTA is officially disbanded). Having that overlap can actually make the transition easier.
HELP PLEASE!
Our PTA is in its last weeks of exsistence.
Some of us wanted to change it to a PTO for years because we did not like the rules which the national PTA restricted us to.
One of our long term members said that a neighbouring town has also changed from the PTA to the PTO. In their case the PTA membership voted that the PTO gets $500.00 as start-up money from the PTA. Does anyone know if this is legal?
Thank you for your help in advance.
