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Can PTO's Be in Business

15 years 3 months ago #148817 by Hope2U
Replied by Hope2U on topic RE: Can PTO's Be in Business
Thank you!
15 years 3 months ago #148810 by JHB
Replied by JHB on topic RE: Can PTO's Be in Business
Sorry, but what you are proposing is outside my area of knowledge. There are certainly many ongoing efforts where the PTO may be involved and designate a representative (BoxTops, ink cartridge recycling). But that's more of a contact point than anything else. Good luck.
15 years 3 months ago #148806 by Hope2U
Replied by Hope2U on topic RE: Can PTO's Be in Business
I have a fundraising idea that would bring in income to the schools that I think would be great, but I'm not sure how to set it up so the schools could profit from it. It's a humanitarian effort that would not require us to handle any products and it's an effort that would let our children help other children. The dilemma is that someone would have to be set up as "the independent distributer" so that the income would go back to the school. The " My School Name PTO" could have the position, but, is that allowable in the school/ PTO laws?
15 years 3 months ago #148804 by JHB
Replied by JHB on topic RE: Can PTO's Be in Business
What exactly do you mean by "independent distributor"?

PTO's are typically set up as non-profit organizations. The majority of the activities they pursue should directly support their stated purpose of existence. A few extraneous activities are acceptable. For instance, a PTO isn't organized to be a re-seller, but having a couple of fundraisers per year of cookie dough, gift wrap, etc. is okay.

But if a tax exempt non-profit starts engaging in commercial enterprises outside its mission, then there can be problems. From the organizational perspective, why would it do this? Will such activities deflect from its goals or cause constituents to be concerned? The IRS may find activities jeopardize the tax-exempt standing. Or maybe they are acceptable, but have to be reported as unrelated business income, and therefore taxes apply.

We'd need more details about what you mean so we can give advice.
15 years 3 months ago #148803 by Hope2U
Can PTO's Be in Business was created by Hope2U
Can a PTO be a independent distributer?
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