Couple of details on this from me:

1. The fee for getting the exemption is $500 if your anticipated gross revenues are over $10,000. If below (true for a good number of groups), then the fee is only $150.

2. We highly recommend getting incorporated and getting the 501(c)(3) -- in that order -- for all groups.

3. Mapleton -- if your only reason for thinking PTA is for the nonprofit status, then I think you're right that it's not worth it. It's not only $800 the first year, it's also $800+ every year thereafter. Getting your 501(c)(3) on your own will take some $$ and effort in the first year, but then you've got it. The savings multiply big-time over time. (Note before I get chastised: If your group is looking to get involved in national politics or be part of the Naional PTA, then the dues could be a good investment. It is a good investment for some groups.)

4. I'd be remisss (and not myself ) if I didn't give a quick plug here for our National PTO Network. The first NPN "Expert Guide" walks groups step-by-step through the 501(c)(3) app. and incorporating, etc. There's also a nice group-discount insurance plan and a lot more. www.PTOtoday.com/npn

Good luck,

Tim

Hi Mapleton, Were going through all this right now. We had to pay 100.00 to get incorporated in our state (NYS) , pay 500.00 to the IRS for exemption and since we use our school name in our title (Parents At Lanigan School) we had to get permission from the NYS Dept of education , which cost 10.00. All that required was a letter from our principal and super. saying it was okay to use it. On the forum under Roberts Rules there is a great post 501(c) paperwork that MBPTO goes step by step through the forms the IRS needs...IT WAS A HUGE HELP !! the other thing I found out mid way was that you need to incorporate before the IRS papers or else if you decide to do that later you lose your status. So if you plan on during incorporation do it before !! Also with the IRS if you have articles of incorporation you don't need the articles of constitution. You do need the bylaws and officers !! Do i think that it's been worth all the work..YES because without it we would have to pay income tax on our fundraisers which would be a considerable amount. We do a few fundraisers but they add up !! So being just a year old I had wish we did all this last year but it will go back to when we started and got our federal id number !! Hang in there !! hope this helped !

Hi and thanks for your response! Yes, I am interested in your by-laws and your ideas for clever notices . Did you send home notes with the kids from the schools? I'm afraid they'll be anti-PTO and won't help us. Did you advertise in the newspaper? Did you hold meetings at the school or in someone's home? What do you do at the meetings,is there a vote required anywhere? Any help and advice will be appreciated. Thanks!

YES! Absolutely!!!!!!! Just over a year ago I was in your shoes. We had a brand new school, drawing kids from 4 local elementaries and we did this. It is NOT costly, though I will be honest, it is labor intensive the first year. I'd be happy to send you our bylaws if you wish (I don't send them out unsolicited, but do send them to anyone who asks.)

My one suggestion is to keep parents at each of the schools you are drawing from informed. Even if the majority are coming from one school - send notices of meetings home to all schools, or find other creative ways (I'll be happy to help you here, too, if you wish. One thing I was concerned about and bent over backwards to avoid was someone coming to a meeting and saying "I didn't know this was going on" or worse yet, "I would have gotten involved if I knew this was going on."

You are doing well to start now for next year. Schedule a meeting for next month, advertise, and ask that the new principal be involved at that meeting as well if at all possible.

As far as 501(c)(3) status - my personal opinion is it's easier to get now than waiting a couple of years because you'll have to give projected budgets as opposed to actuals. Again - just my personal opinion.

O.K. - you only asked if it's worth it - I'm going to steal Metzy's thunder - not just yes, but HELL YES!

Good luck, and you've come to the right place for help.

My children will be attending a newly-constructed elementary school this fall. All schools in our district currently have PTA's instead of PTOs. A group of parents is considering PTO vs PTA at the new school. It looks as though we will need to 1)Incorporate, 2)Create By-Laws, 3)Create Articles of Organization (Constitution)so we can 4)Apply for Non-Profit status. Can someone tell me about how much this will all cost?Is it worth it for the approximately $800 we would save in PTA fees each year?