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Non-Profits | Questions about Tax-Exempt Status for Minnesota Parent-Teacher Organizations?

Becoming a non-profit tax-exempt organization can be very important for groups such as parent-teacher organizations that are involved with fundraising activities. Organizing as a non-profit corporation with the state decreases personal liability for the officers and directors of the group. Additionally, becoming a 501(c)(3) tax-exempt organization allows the organization to receive contributions that are tax-deductible to the donor and, further, allows the organization to be exempt from certain federal income taxes.

Questions? Call (952) 953-8856.

Incorporating and applying for tax-exempt status consists of the following steps:

Step 1

First, the parent-teacher organization must draft and file articles of incorporation in the state where it is located. If the organization plans to apply for tax-exempt status, the IRS requires that certain language be included in the articles that would not be required of non-exempt organizations. In addition to the articles, the organization should also have by-laws, minutes, and a conflict of interest policy.

Step 2

Second, the organization must complete and file the IRS Form 1023. This is a lengthy form and it can appear overwhelming. Instructions are available along with the form on the IRS Web site, but some people prefer to seek the assistance of a legal professional.

Learn More

To learn more about the obtaining tax-exempt status for your Minnesota Parent-Teacher Organization or your Minnesota Parent-Teacher Association, please call at (952) 953-8809.