[PTOgal32]

Our school Parent Teacher organization (Not affiliated with PTA) is not a 5013c but has its own EIN and it's status as declared by its bylaws is 'a non-profit organization.' Our mission statement is "enrich our children's education thru volunteer efforts." Objective per bylaws is "to serve and support our school system within the district and to develop between educators and the general public united efforts as will secure for each child the highest advantage in physical, mental, and social education." Also states: "Volunteer efforts for enriching our children's education will be sponsored through 1. Educational enrichment 2. Fundraising events 3. School improvements 4. Library funding 5. Scholarship program 6. Social events"

Recently our group voted to give $100 of its money for gift of coffee and a massage to an outgoing officer who in fact resigned over stress related to other money issues. I'm a bit skeptical this is legally OK. People who contributed to fundraisers expect the money to go for the correct purpose. Is there a way to explain that this expense DOES go to the correct purpose, based on our bylaws?

Is there a problem with this expenditure that will cause actual legal issues? If so, how so--what are ramifications? And where do I get information about guidelines a small non-profit in WA state ought to follow?

[Fr_Chuck]

Your group, even though its purpose is for "non profit" and so declared, is not such. Since it has not filed or registered as such.

Is it even a corporation, what is its legal status.

If it is a group of people who created a name, and got a EIN number, is it in fact a partnership of all of its members perhaps ?

Without knowing how it is legally formed ( if it even is legally formed) I can not answer this question.

[AK lawyer]

...People who contributed to fundraisers expect the money to go for the correct purpose. ...

People who contribute also expect that their contributions will be tax deductible. For that reason, the organization should work on getting it's 501 (c) (3) recognition.

... Is there a way to explain that this expense DOES go to the correct purpose, based on our bylaws?

Is there a problem with this expenditure that will cause actual legal issues? ...

I think this falls within the general purposes you quoted. I don't think it's a problem.

... if so, how so--what are ramifications? ...

Your organization isn't a tax-deductible charity recognized by the I.R.S. So no, there won't be.

[PTOgal32]

We WERE 501 3 c and learned that our id was no longer any good since no one had filed any tax returns for few years. So now we just recently got the EIN and do a simpler file. I'm not treasurer so not too sure.

[excon]

I'm not treasurer so not too sure.

Hello P:

If you were a 501c3, you don't STOP being one because you didn't file tax returns...

As noted, we can't give you GOOD legal information unless we know what your legal status IS. You don't know. If you want GOOD advice, get on the phone, call your treasurer, and get back with us.

excon