I appreciate the responses so far.

We are in FL, so too far for us to go to any of the conferences. Too much $$$. Maybe if there was one in Orlando or Tampa.

I may have trouble just getting the $ to join NPN, depending how the presentation goes.

One of the main arguments against organization is that we barely have the help to do what we need to do now, nevermind getting more help for taxes and audits. I am hoping that formalizing will give us more credibility which should increase involvement (we hope).


Thanks. Please keep the info coming.

Thankfully, when we incorporated and applied for 501c3, we didn't meet any resistance. I'm not sure if that's a sign of trust or apathy! In any event, here are the primary reasons we used (I presented the details behind each reason thru a powerpoint at a PTO meeting).

* Donations made to the PTO are tax-deductible (this was our primary motivation since the PTO was sponsoring auctions).
* Purchases are exempt from state sales tax (honestly, we don't take advantage of that benefit very often when we make small purchases, but it can come in handy for large purchases)
* More credibility and independence (helpful if you need to establish some autonomy from your school adminstration)
* Grants, special postal rates, and Scrip are available for 501c3's. (We do use scrip as a fundraiser, but haven't applied for any grants ourselves. Scrip,though, can easily make up the out of pocket cost of the 501c3 application)
* Otherwise, the PTO is considered a business and should be paying taxes
* Because it's the right thing to do

I felt that once I (treasurer) learned about PTOs and 501c3, that I had a moral obligation to pursue the application. It's one thing to be ignorant, but to be knowledgable and lazy is unacceptable (in my book).

However, with a formalized structure comes additional responsibilty. As a 501c3, your group is required to file an annual return (990) to the IRS. You may also have state-level requirements such as renewing your incorporation. If your group moves forward, be sure the structure is in place to keep things in line in the years ahead.

When our school dropped the PTA, the principal asked me to step in and start a new PTO. After reading all the wonderful information availavle on this site, and discussing it with my husband - an attorney - I made the decision that it wouldn't be in my best interest to form an organization unless it was formally organized, thus protecting my personal assets. Some people just don't realize that their homes, cars, bank accounts, etc can be at stake if a lawsuit is filed against your group. Of course, nobody expects to be sued. But do you really want to go through the stress of possibly losing everything you've got because of one wrong decision (that might not have been yours)? If you incorporate, the assests of the organization are what they go after, not your personal ones. As for 501(c)3, aside from tax breaks, there are many grants and other financial rewards (like deductible donations) available only to federally approved non-profit groups. Best of luck!

Hi CapeDad --

Is that Cape Cod?

If so, I strongly recommend our March 11th conference in Framingham, MA. ( www.ptotoday.com/conference )

If you can grab one or two moderately interested other parents, I guarantee you'll get a great kick-start (and you'll move those moderately interested folks up a notch or two or three). We talk a lot about: a) the importance of this work and *not* continually reinventing the wheel; b) how to get more parents engaged and involved; and c) how to get organized (nonprofit attorney and nonprofit insurance specialist will bith be presenting).

Hope we can help you out.

Tim

I am vice president of a loosely organized PTO. Our participation level is low, but we get a lot accomplished and do quite a bit for our school.

I am looking into formalizing the group: incorporating, 501c3, etc. (we don't have any governing documents now). I will make a presentation at our next meeting (in 6 weeks) demonstrating why we should organize. (Assuming my research points me in that direction.)

My motivation for this is that I am likely to be nominated for president and not have any opposition, but I could not function as leader without an organizational structure. The current president (in second year) has kept the group going by picking up the ball where others droppped it and doing a ton of work for every committee aside from running the show. We also seem to constantly reinvent the wheel, which bugs me a lot.

What I am looking for are stories that specifically justify the need for bylaws, like examples of situations where they solved problems (I have noticed a few in the archives), specific instances where insurance and/or incorporation saved an organization or individual, and specific advantages to 501c3, like available grants that you know of or have won.

Any other ideas for how to win over my group are appreciated. I am sold on organizing and h ave some support. Most are ambivalent, and a few think it is too much trouble.

We are a K-5 with about 1000 students. (We are lucky to have more than 10 people at meetings, including officers, teachers, and administrators, and noone wants to run anything, but many parents are active volunteers.)

Thanks for any help. Hopefully, as I hang around here, I can return the favor.