RJKGT1965 - Looking at the form's instructions, it appears several different types of organizations qualify for tax exemption of Florida state sales tax. 501(c)(3)'s are listed, but so are PTA/PTO's. So to be exempt from your state's sales tax, it doesn't seem necessary to be a 501(c)(3).

However, the decision on whether or not to apply for 501 status is a separate issue. That designation exempts your organization from FEDERAL income tax, more readily establishes credibility as a non-profit, and allows those donating money/goods to the PTO to claim charitable deductions on their IRS returns.

A rule of thumb that we've often heard is that if a parent group is making more than $5000 per year (gross, not net), it should file for 501(c)(3) status. Otherwise, it should be filing an income tax return as a business. (I've never heard of one filing a commercial return. Many just do nothing and try to operate under the radar.)

We are working on getting our PTO together and this legal stuff is making me crazy. On our DR-5 form from Florida department of Revenue there are descriptions to check which one applies to your group. It lists 501(c)(3) but it also has Parent Teacher Organization/Association. My question is if we get the sales tax exemption under being a Parent group, do we have to get the 501(c)(3) status? The group has decided not to become incorporated. Any feedback I can get would be appreciated. We actually started school this past Monday.

sorry to drag this out but this is for Keith who is questioning how to file!! good luck

Kmamom...sorry to drag this out of the dust you guys but this helped me when I was filing the 1023 paperwork. There is an example of what it might look like. Hope it helps

[ 05-01-2004, 08:25 PM: Message edited by: pals ]

<blockquote>quote:</font><hr> My school got its 501(c)(3) status April/May, but the old treasurer did not file for state exemption. We are in PA and now I am finding out that we needed to do this. Where can I confirm that PA requires this step. It just came up because a vendor asked for sales and use certificate and we have not yet applied for that.
Thanks <hr></blockquote>

I don't know that PA requires sales tax exemption, but without it you will have to pay sales tax on any merchandise you purchase for your organization which includes any fundraisers. PA has a great website with all the info you need, the following link takes you right to the form you need: PA State sales tax exemption form

I would check out the PA Tax site and see if their is anything else you will need to do on the state end. You did not say is you were incorporated which is usually the first step at the state level, and a good way to protect officers from personal liability. Good Luck! [img]smile.gif[/img]

Hi
My school got its 501(c)(3) status April/May, but the old treasurer did not file for state exemption. We are in PA and now I am finding out that we needed to do this. Where can I confirm that PA requires this step. It just came up because a vendor asked for sales and use certificate and we have not yet applied for that.
Thanks
-Diane