By incorporating, you are protecting yourselves. From what I was told by my State contact person, you will receive a form every year to update any information including names. There is no cost for this action.
Since I haven't done the 1023 Form yet, I would "assume" the same concept goes for this.
Once incorporated, approved and operating as a 501C3, do we (the current board members) have any legal/tax responsibilities/liabilities once our terms have ended and we pass the baton down to others as we move on from the group as our kids move on to high school (new school system)? Our names may be in the original paperwork, but we are only in the newly formed corporation for a couple of years. We don't want to be held accountable if future boards "drop the ball" in terms of tax filing etc.
I contacted our tax firm about doing the 1023 Form for us - it was going to cost us approx $1000 as a beginning cost.
If you purchase the PTO Start Up Toolkit from this site, it will walk you step by step thru the application process. This is definately a good purchase and will save you a big headache
The vast majority of PTO 501c3 apps are done by volunteers (non lawyers), and they work out fine. If you make a mistake on the app, the IRS will (politely, actually) tell you that and even advise on the correction.
It's a bit of work, but definitely something you can handle.
What are the legal risks to the members of the board of our PTO in doing the incorporating and 501c3 organization on our own versus paying a practicing licensed lawyer to take us through the process? We do not have the services of a practicing volunteer lawyer in our group. We think this (incorporation/501C3) is the right route to go, but are nervous about adverse repercussions if we ignorantly do something that is "out of compliance".
