Is your PTO incorporated in your state? If you start fresh as a new PTO, you might want to incorporate before filing for your 501c3. It provides a layer of protection to your officers, but must be done before 501c3 because the process of incorporation creates a new organization in the IRS's eyes. If you try to incorporate after you've gotten your 501c3, you'll have to file for 501c3 all over again.
If you end up refiling the 1023, you mgiht want to order a copy of the PTOToday Start Up guide. It walks you thru the application.
If your treasurer tried to close the account, she's looking very suspect. See this thru. Get her resignation in writing. And then take her off the bank account. Keep us posted. We could all learn from your experience. Good luck.
LUVMYKIDS;133564 wrote: One tip here mommyto, don't rely on your MIL's audit. It's nice to have her look at the records and let you know her thoughts, but you really should find an independent auditor or put together a committee to do the audit.
For sure! I am all for having someone else do it I just wanted someone that does this on a daily basis to look over it to make sure that what the new board sees is what someone that does this sees. Thanks
One tip here mommyto, don't rely on your MIL's audit. It's nice to have her look at the records and let you know her thoughts, but you really should find an independent auditor or put together a committee to do the audit.
Thank you all for the help that y'all have offered. We are going to hopefully speak to someone to tomorrow at the district office (they said that they can not (help) us but can offer advise to lead us in the right direction.) So I hope that will help.
We are a 501(c)3 for sure; I have called and talked with the IRS but that is a whole other can of worms. (our status has been suspended as of 9/2004 do to no one returning the forms that were requested) we are trying to get everything together to reinstate that one or just file for a new one there are some things wrong with the old one (name change) simple but after all of this the new board might feel more comfortable knowing that we are starting NEW with everything. Not sure what it is that we are gonna do; still feeling our way around.
The money is an account that is under our own number.
The treasure went to the bank this morning and tried to close the account. I had already put a freeze on it, she wasn't able to do that transaction. I went and talked with principle about what was going on while I was there she came up and resigned her position. And still refusing to give us the records. We are still left with a HUGE MESS.
Tonight my mother-n-law which is an accountant reviewed what I have received and she said that there are some things of concern.
If anyone has any other ideas that would help we as a new board would greatly appreciate it. This is the best site!
Mommy - are you absolutely CERTAIN that your PTO is a 501c3? A 501c3 organization must file an annual "tax" return called the Form 990 or 990EZ. In order to do so, you need very detailed transaction records, the kind of information you are looking for. If this treasurer has filed the 990 in the past, she should have all the info somewhat organized. If your PTO is REALLY a federally-registered 501c3, and the group HAS NOT been filing the 990's in the past....ugh. There are real fines levied by the IRS.
What makes you think your group really is a registered 501c3? Many PTO's assume they are because they use the school's tax id number, or they believe they are 501c3 simply by virtue of having a tax id number. Not true in either case.
And there are record-retention rules as mentioned by another respondant. Some things have to be kept indefinately, others for several years. It's incredibly irresponsible for her to threaten to shred documents. That's a really BIG red flag to me. Really sounds like she has something to hid (other than the embarrassment of poor record-keeping)
Important question: is your money kept in a bank account under the school's tax id number, or the PTO's own number? Very important to know for sure - ask the bank if you don't know. If the money is under the school's tax id number, all this concern (and the money itself) ultimately belongs to the school, not you.
I would open a new bank account under the PTO's OWN tax id number. Put 3 authorized signatures on it, and implement new financial controls such as requiring 2 signatures on every check (order your new checks with 2 signature lines). You can't close the old account without knowing its status, especially regarding outstanding checks. If your treasurer is really being as resistive as you describe, something smells bad. Check your bylaws for the procedures for removing an officer from the job, and go from there to reclaim the PTO's financial records.
Sounds like you have a real problem. You can go online to the IRS and download for free the last 2-3 years of tax returns. That would be a start in recreating the financial history. But I would absolutely inform your principal/superintendent and your local Board of Education. Your BOE would also have legal counsel (ours does) and they might be able to give you some "free" time to discuss your situation and options. Good Luck.
