Not a problem at all - what you have is very good general advice. I do believe that in my post I referred to some (only a few) of the details that the orginal poster will need to consider. As you should realize most often when I post on something like this I consistantly advice peple to check their state laws on accomplishing most things associated with their non profit status. in this case I was being specific on some of the detailed items that they need to be concerned with and tried to use examples of how this could benefit or hurt the process of the change is all.
Mom, actually you can in CA transfer the accounts from the PTA to the PTO - CA is one state I am very familar with. Your current by laws should state what can happen with your assests upon disolution of the PTA - years ago this used to read that they would be transfered to another PTA or the county/state organization - this was changed by state law many years ago. I cant remember the specific section of the CLC at this time but check - unless it was repealled since I have left the state it will permit you to transfer the funds and other assests provided you follow some of the things I mentioned in my prior post.
Forget any idea of "transferring" PTA money to a PTO. To correctly follow your PTA bylaws, you must surrender any assets once you vote to dissolve. When we dissolved in '03, we did so in the spring, towards the end of the year, and had already spent or committed our funds to current fiscal year PTA projects.
When the PTO became a reality, it had to start from scratch from a money-standpoint. I highly advise you doing the same thing.
Good luck, and I hope your PTO experience is a great one!
I am in California, but your advice is well taken.
I'm quite sure that we would not be able to transfer funds from a PTA to a PTO. What has been discussed, but not completely decided is that if it seems like a PTO would make the most sense for all involved, we will preliminarily begin the PTO process, spend down the PTA bank account, then disband so no monies are out there that we cannot use.
Mom,
I don't know what state you're in, but I'm in CT (which is what I'm basing my info on). That being said, contrary to what Dave posted, the IRS determines non-profit status, not the state. And though I'd recommend contacting them prior to filing anything, the IRS will need a new organizing document, bylaws or operating guidelines, budget (projections since the group is less than three years old), and probably a new Form 1024. AND, they will probably require the filing fee as well. Federal government, you know.... It really isn't that daunting of a task.
Incidently, if I remember my days with the PTA, they will not allow you to transfer funds and possibly assets to the new organization.
Although you may have found a referance on this web site about starting a PTO while the PTA still exists this can cause a problem. It has to do with the assests of the current organization and two organizations doing the same thing. Many states have laws concerning this which will make it easier for you to do some of theings you may wish to do. As an example in my state there is a 90 day period between the desloving of one organization and the creation of a new organization doing the same thing when they are non profit. In other words if the same people are running the two groups - oops that is a no no!
Hi Dave -
This is interesting. Do you have a reference that shows this to be a problem? The nonprofit attorneys I've consulted on this don't see it that way.
As an aside, in my recommendation to start the PTO before PTA is formally dissolved -- the presumptions are several: 1) the two groups will have entirely different EINs and legal status (not just a name change or a transfer of nonprofit status); 2) Funds and assets will not be transferred. The two groups will be completley independent of one another.
I copied the first two, along with some other information from this website, and gave it to 2 of my board members.
I was impressed that each of the replies employed the appropriate amount of diplomacy (many other posts I've seen on this website have not ~ we must remember to stay focused on the goal and not become personally threatened by those with a dissenting opinion).
Jon and Dave, since my post I have done quite a bit of research and intend to do more. I have read my unit bylaws in their entirety, and have downloaded, read, and printed out the procedures for disbanding a PTA in my state. (But you were so correct that homework must precede action ~ I would never place the school's integrity in jeopardy, regardless of my capacity there).
I further plan to make my agenda quite clear at the next meeting (lest others draw their own conclusions). My goal is twofold: 1)to get more accomplished with less work, and 2) to keep our money in-house, which I believe the overall membership would want as well. #1 is not likely, and #2 an impossibility if we remain a PTA. However, I will not be discontinuing my service even if the majority chooses to remain a PTA. I simply won't be president, and perhaps function as ways and means instead.
