EINs and 501c3 are separate things.
The EIN is a way for the IRS to keep track of your organization (as a business). If your organization is raising any money you need an EIN to cover you and you have to report these earnings to the IRS each year (file tax forms).
You also imply that you need a number from your state (KY). Each state is different in their rules and so I can only talk about my state (MA).
501 is the part of the IRS code that defines and covers Non Profit Organizations. PTOs generally fall under 501c3 which defines Supporting Organizations for educational purposes. Once you are recognized as Non-Profit, you no longer have to pay Federal taxes, but there are different forms you need to file each year.
If your PTO is part of the school - for example, if the money you raise goes through the school;s bank account - then you can use the schools EIN.
However, most PTOs are seperate from the school they support. So if your have your own bank account and your parent volunteers are not "employees" of the school, you should have your own Employee ID Number (EIN) even if you have no actual paid employees.
You get an EIN from the IRS. Check their web site (
www.irs.gov
). If you can call them it should take about an hour to get an EIN, with snail mail confirmation coming a few days later.
The EIN is seperate and apart from applying for Non Profit Status under 501c3.
Once you have an EIN, you are required to file tax forms each year.
As a PTO you are most likely to qualify for Non-Profit under IRS Code 501c3. Read Pub 557.
To apply you will need approved "Articles of Organization" (also called a Charter or sometimes By-Laws, although Articles or Org are more than simple By-Laws). You will then need to complete IRS Form 1023 which is your Application for Recognition of Non-Profit Status. (It is a bit more involved than this in the details of course).
Once the IRS approved your application, you will need to complete a version of Form 990 each year (instead of other tax forms).
Also once approved, there are other steps you have to take with your State for them to recognize your PTO as Tax Exempt. This varies from state to state.
Once you are Tax Exempt, there is other paperwork to fill out everytime something is purchased on behalf of your PTO so that you don't have to pay sales tax.
There are also State forms for Tax Exempt Orgs rather than tax forms.
Do you have to go through all this? No, other than getting an EIN you don't have to try for 501c3. If you do become Non-Profit/Tax-Exempt, then you do not have to pay Federal or State taxes (or State sales taxes) so more of the money you raise goes to the thinigs you fund for the kids in the school. Also, it is easier to get some companies to donate to you if you are 501c3. Finally, if individuals donate money to you, they can take the money off their taxes as Charitable Contributions (Sched A). If they are eligible to do so.
Also, in my humble opinion, going through the process and following the law sets a good example for the children in your school.
Hope this answers your questions. Good luck!
