I forgot to add to the post above..........our group is over the $5000 gross receipts mark, but are well under the $25,000 mark for the 990EZ filing requirement. Will we file the informational e-postcard return for the short year (Nov. -Aug) if we do get the 501(c)(3) status? This will not require any details of our financials for the year, will it? HELP!!!!!!!!!!Thanks once again.
I hate to post a third time, but I am beginning to get very nervous as to how to handle the old PTO to the new PTO transition. Here are the details:
1. We have been operating as an informal parent group for years.
2. September 2007 our group decided to formalize due to the fact that the money we were bringing in was well above the $5000 mark.
3. Last month, November 2007, we incorporated and got a new EIN with our new "corporate" name.
4. I have not yet opened a new bank account with the new EIN (I am in the midst of filing an amendment to our certificate of incorporation to make sure our articles include the proper IRS wording for application for 501(c)(3) status.) I am still using the "old" checking account.
5. Our PTO year has always been September 1st to August 31st and the board decided to keep this our fiscal year.
My question is:
What do I do now? I can open the new bank account this month, December 2007. Do I simply write a check from the "old" account transferring funds to the new account? (I will leave enough funds in the old account to cover any outstanding checks I have written to date for this year.) How do I handle the financial reporting to the group? Since our incorporation date is in November, do I need to redo the financial statements as if our group was brand new as of our incorporation date? Can I just finish out this year as if nothing really changed since, from the group's standpoint, nothing has really changed? When I fill out my form 1023 and the IRS asks for projected financial data for 3(?) years, do they want me to project for our years stating in September 2008? Does the IRS want financial data from our short year of November to August? Does the IRS care how we handled this September 2007 to August 2007? I feel sick that I don't know what to do!
JHB and Critter- I have seen some reliable info from you on this board and have REALLY appreciated it. I hate to be asking yet another question, but it just seems that as I go forward I am faced with new (and sometimes very worrisome!!) issues. I don't want to botch things (from an IRS standpoint) and jeopardize my group's possibility for non profit status- then we will end up with a PTO corporation with no 501(c)(3) status! That would be a nightmare.If anyone can guide me through this "transfer period" I would be very relieved. Thank you and HELP!!!!!!!!!!!!!!!
Has anyone's group dealt with this "transition" (albeit a totally new entity based on the November incorporation) of their old PTO to a new one? In filing the form 1023how do I treat all of the money (from the "old" PTO) which is now miraculously in the coffers of the "new" PTO? I am not sure how to handle the transition of the money.
I have a question about our recently incorporated group. We had members contribute voluntary "dues" in September, the beginning of the school year. We recently incorporated last month, in November and are applying for Federal tax exempt status. If we do get approval from the IRS:
1.) Are the contributions to the group by the members deductible since they were made prior to the incorporation date. My thought is that they are not. Is this correct?
2.) Also, since the funds in the "new" incorporated group's bank account are really just a move from the "old" group's bank account, how is this money characterized in our "new" financial records?
We are confused as to how to handle the move from the "old" unincorporated association to the "new" incorporated group. We are still the same group in nature, we have just now begun to formalize. Could someone who has made the "change" help us out? Thanks!
