Make sure you also factor in membership to the NPN--at $179, it will pretty much pay for itself in the insurance policy savings you can tap into. (See other benefits here: www.ptotoday.com/npn/whatisnpn.html) Also check the insurance policy prices for PTA vs. PTO; they will likely be a little higher for PTO than PTA.

I shouldn't try to do this from memory...but I think the fee to apply for 501c3 is $500, if your GROSS income is over $xxxx (someone will fill in this number for me, I'm sure, but I think it's $25,000). Less than that, you pay $150, which would be the case with a brand new group. You might also have a nominal fee ($25?) to incorporate in your state, which is typically another good thing to do BEFORE you file for 501c3 because it often protects your officers from being personally liable for PTO suits (the laws vary from state to state and incorporation is a state-level issue).

I don't know about your state PTA but I do know that National, while discussed a dues increase to account for a loss of members, did vote it down last year and it was not brought up to vote at the National convention this year(where dues increases have to be voted on by the membership)
(instead increasing corporate sponsors rather than increasing dues)

Also, state PTAs have to also vote at their conventions to raise dues (they can't just arbitrarily raise them) are you certain that your members voted in a dues increase at this last convention, since your information about National having a dues increase is false? Also each state operates independently so to announce that State is looking at a dues increase (if it is correct) would only apply to your state and not the other 49 states.
And if it is being discussed to do this next year, it will only happen if the members vote and agree on it. Like I said, it was voted down by the membership at National two years ago.
What state are you in?

[ 09-20-2004, 06:50 PM: Message edited by: Michelle B ]

We are currently a PTA and are going to vote in the next two months to disband our PTA and start a PTO. What costs are involved in gaining 501c3 status/tax exempt organization? Also, our bylaws state that we can donate our funds to another non-profit organization - if we set up our PTO, while we are still closing out our PTA, can't we donate our funds to our PTO as long as our 501c3 status has been set up? This is a big issue for us because we actually fundraise this year, for next years budget. Help!!
Why are we disbanding our PTA? Because our State PTA is not supportive. Why pay dues when we really don't get local support? The money could be better spent at our school instead of basically funding lobbyist in PTA and supporting two buildings with huge expenses. National and State PTA are looking at ANOTHER dues increase - watch for it - it's coming SOON.