Whenever your officers change, you send a notice of the change to the IRS. I can't remember exactly how I did it this year, but I don't think it's an standard form, I think you just send a letter to a certain address. I do remember that we got a confirmation letter back.

As far as "down the road" with illegal stuff...don't know. It probably goes back to whether your group is incorporated and/or has officers liability insurance. But I'm assuming you're talking about embezzlement. And 10 years from now, your name may not even be on the organization anymore.

Critter
Thanks soooooooooooo much!!
Another question though. Onthe long form there is a plce to put officer names...etc. What happens when the officers change? Also, what happens 10 years down the road if someone does sonething illegal and our names are on it?
Thanks...in advance

The very first step in becoming a federally-registered tax-exempt 501c3 is to determine that your group WANTS to be. Assuming that part is done (and that's not as silly a decision as it might sound at first), then on to the next step.

Your group needs its own federal tax identification number, also called the Employer Id number, EIN -- no you won't have employees, that's just what they call it. The information you need to get an EIN is on IRS Form SS-4 which you can access at www.irs.gov. It's basically defining the name, contacts, and address for your group. The EIN is like your group's social security number --- just identification. Getting and EIN does NOT mean your group is tax exempt, non-profit, or incorporated. When you've filled out the info on SS-4, you can call the IRS as the phone # on the form, read them your data, and they'll give you an EIN over the phone. It's really that easy.

With the EIN, your PTO can open its own bank account, which is usually the next step.

In many states the next thing to do is to incorporate your PTO. The fee varies by state, but ours was only $25, renewable annually.

Now comes the harder part. Harder, not impossible. If your group wants to become a federally-recognized tax-exempt 501c3 charity, like many many many other parent groups, you need to file IRS Form 1023. The form is long, comprehensive and time-consuming, but not impossible. Some groups hire a professional to help them, but it's absolutely!!! something you can do yourself. Many groups do. There is a one-time filing fee of $150 or $500 payable to the IRS, depending on your group's size.

The PTO Today Start-Up Guide has step by step instructions and it's way cheaper than a tax attorney. It's available from this website.

Critter
Thanks for the reply. How do I get a tax ID number at no cost. we have been researching the non profit and it is gonna cost quite a bit.
Thanks

You can call your parent group anything you want to (except PTA unless your group is associated with national PTA). Though lots of non-PTA groups use the name Parent-Teacher Organization (PTO), PTO is just a generic term for parent group. Your name is just fine.

If you are a new group, you have a very important decision to make before you go much further: is your group a committee of the school, or an independent organization?

If you are a committee under the principal's total control, than you'll probably keep your money in the school's account, using the school's tax id #, and your principal will probably be very closely involved in the decision making of your group, including financial decisions.

If on the other hand, your PTSO will be an independent group, you'll need your own tax id number (easy to get from the IRS, no cost) so you can open your group's own bank account. Most independent groups have their own bylaws and make their own decisions...with some consideration and input from the principal.

If you're not sure which way your group is supposed to be set up, talk it over with your principal and officers. Be sure you understand the expectations of both your principal and your parents.

Hi all
we are a new Charter school and last year our principal suggested we call our group the PTSO (parent, teacher, student Org) With all new in experienced parents we decided to take this name and it has caused nothing but trouble. I was wondering how all of you have your bank accounts set up. Did you get a Tax ID #? how did you set it up? What names can we use.....
Any advice would be GREATLY appreciated!
Thanks a bunch