Thanks for all the info. I got some paperwork from my treasurer and all we have the EIN number and it is different than it was as the PTA. SO at least we have that done. Now to be incorporated...I'm not 100% sure what that is...I was told about all the forms and will ask some help from an accountant friend to see if the process can be faster. Any other help, ideas to make the process faster is great help!

I'm sure Critter will be chiming in on this one. As far as I know, you are considered a new entity as far as the IRS is concerned and so will need to get a new EIN. You will then, depending on your state, need to register as a new business entity with the state and then file the 1023 (to become a 501(c)3) with the IRS. The entire process took us about 4 months.

You can open a new bank account in your PTO's name as soon as you get the new EIN and register with your state as a new non-profit corp. The second step is required in NJ before a bank account can be opened but is not the same in all states. Your non-profit status with the IRS is retroactive so you can start accepting donations as a PTO once you have your bank account open. Hope this helps!

Others might have kept their old PTA EIN, but my gut tells me for you to get your own new EIN for your new PTO. That's form SS-4 from www.irs.gov. Free. Easy. Step one.

You'll need to open a new bank account with the new EIN (unless maybe the bank will let you switch EINs???) and move your money to the new account.

With your own EIN, you then consider incorporating as a non-profit org in your state. That's also pretty easy and cheap.

Now you have at least 27 months from the day you are formed (that is, your incorporation date) to apply for your 501c3 status with the IRS. I say "at least" because the IRS says if your annual gross income is less than $5,000, you don't need to apply for 501c3. Once you hit that threshhold, or you expect to hit that threshhold, you should apply. If your old PTA consistently took in more than $5000 (notice, it's gross, not net income), then your new PTO probably will too, even if you're just getting started.

In the interim between your incorporation and your actual getting your 501c3, there may some consideration by the IRS as to the deductibility of donations made to your new group. You should call the IRS for clarification on that.

If you want advice in writing, consider getting the PTO Today Start Up Guide which includes all these steps and more. Come back to the message boards with your questions. There's lots of us out here who have been through the process.

Let me see if I can sort of help, I am not anywhere as good as critter is on this stuff! A ein number does not mean you are non-profit, to be non profit you need to fill out form 1023. It is time consuming but is worth the whole thing, if you really are careful and dot all your i's and cross your t's the whole thing can be done within months. I have heard people say it took six months but once we filed we had heard back within a month and a half. From incorporating to going non profit took us a little less than four months.
If you are going to get 1023 status make sure you incoporate first, it will save you money and time later on.
As far as playground funds you can still raise them but the donors wouldn't be able to declare them as a non profit donation. Good luck! This forum is a great place to get help walking thur the form...we did and it was GREAT!

I am the new president of a small PTO and until this school year we were a PTA. Now I have some questions about whether or not we are still considered Non-profit 501(3)? I talked with the treasurer tonight and she said we still have the same EIN number and so she was told we would still be considered non-profit. I know the EIN stays the same, but since we're now PTO we would have to fill out all the paperwork to become non-profit on our own?? With PTA we were automatically non-profit...Ok, so my question is will we still be non-profit or am I safe to assume we need to start all over again, wait to collect donations for our playground until we are non-profit. And if so...how long will that take?
Thank you!