How does a PTO incorporate and apply for tax-exempt status?
It is generally a three-step process: • Draft and file Articles of Incorporation with the state government in the state in which the PTO is located. Most states have a sample form that you may use to draft the Articles online, typically part of the Secretary of State website, possibly under a special corporations section. NOTE: If you plan to apply for 501(c)(3) tax-exempt status you will need to include special IRS language in the articles of incorporation. • Draft bylaws. Sample bylaws are available at nonprofitlaw.com or at PTOToday.com • Complete and file IRS Form 1023. This form is available online at the IRS website, www.irs.gov under Forms and Publications. The IRS form can appear overwhelming. Sample forms and instructions are available at www.nonprofitlaw.com for do-it-yourselfers. You may also seek the assistance of a legal or accounting professional. I am providing a substantial discount from my standard rates to assist PTO groups incorporate and seek tax-exempt status. Plea
