We are getting ready to send in our 1023 soon. This was our second year as a PTO.
We never heard word one from the PTA. Nothing, no letter, call, rep. Everyone seems afraid of what they'll do but in our case it was absolutely nothing! I am so glad we are a PTO.
The IRS gives you 27 months after the founding of your group to file the 1023. I'm not an IRS rep nor an attorney, but I take that to mean that you can consider yourself non-profit during that interim, as long as you act in the manner of a non-profit. Not to say you can blow off the 1023, but you don't have to panic.
Hi Everyone! Thank you for all the great advice! We had the vote, and it passed!!!!! Yay!!!!!
I was actually thinking of Tim's suggestion--that I would tell them that they can have copies of our books, as long as they paid for them, and as long as one of our reps were with them while they made copies. After all, we paid for those binders, dividers, paper, etc.
Regarding the money in our account, I got our EIN this morning and will open an account today. But, we are not officially a non-profit until we file with the IRS, so we will not be transferring funds from the PTA to the PTO. What we decided last night was to donate the money to the school, and the principal agreed to pay for start-up items next year.
I think we're good! We are all so excited! BTW--we're in California.
Oh--I will be posting a new post to ask: do we file Articles of Incorporation or Articles of Organization? That is, do we do line 1 or line 3 in the 1023?
The easiest way to avoid them taking your money or books right away is simply to leave all that stuff at home. You tell them that you will box it up and drop it off to them in a few days.
Or just write out a check to the principal(in the memo box put down deposits for field trips or something educational) for the remaining balance and have him cut the new PTO a check for the same amount so you can open up your bank account.
Originally posted by jcarar: We will be holding our disbanding vote tonight!!! Assuming the vote passes, how long does the PTA usually take before they try to take our money, assuming they will in fact try?
It doesn't usually work like that. Did you notify regional or state PTA of your vote? If no, then they don't know. If yes, then they were probably there last night and -- if the vote to disband won -- then they probably left in a huff. Tell us how the vote went and we can provide more insight.
I plan to get our EIN and open a bank account tomorrow, and we have some checks we have not yet deposited. Do we have a few days to spend down our money after the vote?
Again, the horse may already be out of the barn on this one. If you still have dollars left, I'd immediately spend those dollars on products/services for your kids or the school. Leverage (not that PTA ever really gets the money anyway; they just make it seem so) goes way over to you, if the money is already spent.
Also, the PTA bylaws (not our school PTA's) say that they can take our records, books, etc. What is the best, most PC way to say "no way?"
I know we don't have to be PC, but we want to try to keep the peace as much as we can.
I've never understood this. If the IRS comes knocking, they're going to come knocking to you and/or the last officers of the now-defunct PTA first. My PC compromise suggestion: if PTA asks for all this, tell them you'll gladly provide them copies of all these documents, provided they pay the cost (time & expenses) of the work. You've got nothing to hide, but -- just as they want to be covered -- so do you.
Those checks must be deposited into the PTA account, then spend down the money as posted.
Again this is to comply with IRS regulations.
Tecnically all the records and books are property of the PTA, this was probably spelled out many years ago when the group was chartered. In practice, is this something you and they really want to do battle over? What value are the records and books to the State PTA?
