Quick intro..I'm normally a lurker here..I'm president of a PTo at a small school and all of this stuff is still kinda new to me. I really don't know if anyone has ever filed any kind of status..This year we have raised about $2000..(This is probably about the average.) The money is generally spent with an exception of about $500 because our principal has always told us that we can't carry over more than about $500 a year. If this is true, we'll never be able to raise funds for anything large (playground equipment,etc.) So I'm wondering..with this small amount do we need to file an exemption? And can we carry over to save..The administration has told us that if we want to save for something we basically have to let the school know what we are saving for and how much we are saving.. It just seems to me that we shouldn't have to tell the school anything since we aren't part of the school. (They say we have to tell them for tax reasons) Thanks for any help.
Our PTO is in the beginning stages of becoming 501(c)(3). We have filed for a new EIN (the one we had been using for many, many, many years was discovered to be not valid) and have incorporated. We plan to work on the Form 1023 this summer. My question - since we are officially a corporation but not officially non-profit (501(c)(3)) are we required to file income tax for this school year as a taxable entity? In case it matters, our current income is just over $25,000 and our current expenses are almost $18,000.
I am a first year Treasurer and the help and knowledge of all of you experienced PTOer's has been tremendously helpful! Thanks!
Sounds like you're doing great work. Congrats. Yeah, you guys are carrying big dollars. I bet there are a lot of envious folks reading your note.
Think of those dollars as an opportunity. Rather than looking for one thing you can just blow a whole wad of cash on, maybe start now thinking about how those dollars can change your group. My advice: think involvement. Do you have family nights? Have more. Do you charge admission to those? Don't. Can you bring in the most popular DJ in town for a great family celebration? Can you start a volunteer appreciation campaign? You get the idea. You can do some things that a lot of other groups don't have the luxury to do. Good luck.
And if you've had fun getting your financial house in order then: a) you're destined for a long, successful career in PTOing (you're just crazy enough ); and b) then you're going to love our newest little project called "Finance Manager" (details coming soon, hint, hint...).
Wow, you guys are a wealth of information. Thank you from someone who was told the job was basically writing checks and balancing the checkbook. It's been fun getting things really set up - with your help, of course.
We are set up as a nonprofit and the appropriate forms were filed. For the last two years our gross receipts have averaged around 20K. We do have exempt status, as well.
Our problem has been that people don't want to spend the money we have. We have 23K in the checking account right now with one more large fundraiser and no large-scale expenditures pending. Maybe the former treasurer was trying to get people to make a plan to spend the money. We did a lot of spending at the end of last year to "get rid of the money before the IRS got it."
I am going to do a little light reading through the IRS publications as well as print out your posts to take to our next meeting. Thanks again!
mum24kids is right. I shouldn't have assumed you were a 501(c)(3) non-profit.
What people sometimes don't understand is that a PTO is actually a business. If you aren't legally set up as a non-profit organization, then you are simply a business like any other. A commercial return should be filed and revenues would potentially be taxable. (Still has nothing to do with "what's left" at the end of the year.)
The fact is that many, many groups operate "off radar" and don't file anything with anyone. I've never heard of a PTO voluntarily filing a commericial return, but the IRS tells me that - legally- that's what they should be doing if they aren't set up as a non-profit.
); and b) then you're going to love our newest little project called "Finance Manager" (details coming soon, hint, hint...).
