Originally posted by kelly6177:
Can you be a PTO without actually being a registered non profit organization in your state? I was told that we don’t generate enough funds to have to file taxes or have our own tax id number…
Hi Kelly --
Who told you this? There are really two entities you're concerned with: federal (IRS) and state. There are a good number of parent groups who operate without being a formal nonprofit and, frankly, without being really a formal anything. It happens; those groups are still doing great work; and I don't suspect the parent group police will be hammering down their doors anytime soon. That said, I think there are good reasons to go through the process for most groups.
How much can and should a PTO carry from year to another without having specific reasons to save for?
This is a common question, and you'll find a lot of opinions in other threads here on the forum. Use the search feature on the word "carryover". It's a widely-held misconception that there's a limit. There is no official "that's too much" limit. If you have a good, mission-driven reason for holding over funds, you could hold over millions. "Should" is a different question and where most of the differences of opinion come in. My opinion: hold over enough so that you can get off to a great start on the new year, focusing on service and involvement and fun -- without having to ake the huge fundraiser your first order of business. Instead, focus on service and fun first, and then fundraise after. Nice added benefit: your fundraising will be even more successful that way.
Can you incorporate into your bylaws an approximate amount that is allowable and a minimum amount aloud to carryforward?
Sure -- you can incorporate that into your bylaws if you want. You could also do as part of what you might call "standing rules."
Good luck,
Tim
