Hi New PTIOer --

I'm assuming that you started as a completely new organization for all legal and IRS purposes. (And I'm not a lawyer or an accountant).

My first advice is to make sure you use the dollars in ways consistent with how the dollars were raised and perhaps even consistent with what the IRS would want you to do if that old group *had* been a 501c3. Like supporting your school, your mission, the kids.

I suspect you could also donate those funds to the new 501c3. I don't see why you couldn't do that, though -- again -- that's a gess not legal or tax advice.

If there's a big purchase or expense that fits with your groups mission (the old org or the new) and you used the old orgs remaining dollars to fund that expense -- I don't think you'd have any problems.

My $0.02.

Tim

Rockne, I posted a reply to a blog about 501(c)(3) status and entities not filing taxes earlier today. Do you have any thoughts as to how to deal with money that may have been raised prior to incorporation in the 501(c)(3) application? The message boards and information is very helpful. Thanks!

Hi Deb -

I'm not a lawyer, so please take the below with that caveat, but:

1. Your current PTSO isn't really an entity to the IRS. You're basically a club of the school, which is the same status of many groups. So in terms of shutting it down, if that's what you'd like to do, you can follow your bylaws or (if everyone is clearly on board) you can leave it be and just have it basically go away.

2. You could also just turn that original group into a recognized 501c3 -- even keeping your name, if you want -- by applying to the IRS that way.

3. Finally, if you do just want to start completely fresh, that's fine, too. As far as the current group's money goes, I'd recommend keeping the current group ostensibly alive until you spend all te $$ down to zero. There's no rule that says your current group can't continue as it's been doing for some time even while your new officially 501c3 is up and running.

Tim

Hi!

Our school has had a PTSO for years that operated under the umbrella of the school. Now we are working on incorporating and becoming a 501(c)(3). My question is, what do we need to do to close our PTSO and convert to the new nonprofit PTO? Are we covered legally if we simply follow whatever dissolution procedures are in the PTSO bylaws? Or are there some other steps we need to take that might be required by the state or feds?

Also, can we just take the funds from our PTSO bank account and simply transfer them to our new PTO account? Or will the IRS frown on this when it comes to our 501(c)(3) application?

Thanks so much for any advice!