There is no reason why your group should pay taxes out of the money they raise. Even if you only have a few members, 501c3 keeps more of your fundraising dollars in your PTO.
I have PTA units with 10 members and less than 200 students but they earn a lot of money. It would be a huge amount that would have to be paid to the IRS if they were not a 501c3.
Of course, you should still file!!! The size of the school doesn't matter! Your organization needs the benefits of becoming not-for-profit! I'm sure others have great reasons why, too! Our Home & School has had our 501c3 status for years & we had less students when we applied than you do now. If nothing else, it saves you from having to PAY Federal taxes on the money you raise (you still need to file a 990, which is a report of financial activity) AND you can get donations from corporations and they can use the donations as tax write-offs.
Hope that helps you some!!!
Holly
Delcroft Home and School
FOlcroft, PA
I am the new PTO President of my daughter's school who does not have a 501c3 status. The school has 700 students. I was told that I should not apply for the status because it was a small population of students. Is this correct? Should they file for the status or remain without it. Appreciate all the response I can get. :confused:
