SERVICES PERFORMED

For Parent Organizations and Prospective Nonprofits

When your organization joins the association, NC PTOs & Booster Clubs Association will perform the following services

A. The Association will apply for incorporation by filing articles of incorporation with the N.C. Department of the Secretary of State.

1. This is done by filing Articles of Incorporation for Nonprofit with the State.

2. As a corporation, the non-profit’s board members, officers, and members are not personally liable for the nonprofit’s obligations. If the parent organization is incorporated, then lawsuits only apply to its corporate assets. Thus, members of the parent organization enjoy legal protection from most situations.

3. Once incorporated, the nonprofit becomes a recognized legal entity, separate from the individuals who carry out its operations. The corporation has a life of its own and continues as individual members come and go. The nonprofit corporation can enter into contracts, hold property, sue and be sued – just like any other person.

B. The Association will apply for a Federal Employer Identification Number (EIN).

1. This EIN is used by the IRS to track reports and your Form 1023 tax-exempt application.

2. The
parent organization is NOT allowed to use the School Systems EIN.

C. The Association will apply for your parent organization's Tax-Exempt Status as a 501(c)(3) nonprofit. As a 501(c)(3) tax-exempt nonprofit, your organization:

1. Will be exempt from
paying Federal and State Income Tax.

2. May also receive tax-deductible donations.

3. May apply for private foundation and corporate grants.

4. Can apply for sales tax exemption on sales and purchases for fundraisers.

5. Status as a 501(c)(3) organization lends credibility to an organization.

Donors can see that there is documented proof of the organization and its function, and that they are not supporting an organization of questionable mission or origin.

(The IRS requires a filing fee of $275 to process your application.)

D. The Association will write or amend your organization's bylaws for tax-exempt status filing.

Bylaws must have specific language to qualify as non-profit corporations with the State and as a 501(c)(3)

.

E. The Association will apply for NC sales and use tax exemption for your parent organization.

1. NC provides nonprofits with federal 501(c)(3) status to apply for exemption from state sales tax. NC requires nonprofit groups to register with the state agency prior to fundraising.

F. The Association will apply and serve as your parent organization's Registered Agent for the State of NC.

1. We offer this service since nonprofit officers rotate on and off the organization’s board.

 2. NC requires business entities to have registered agents.

G. Maintaining a 501(c)(3) tax exempt status requires nonprofit organizations to file an annual Form 990

1. Nonprofits with $50,000 or less in annual gross receipts must file a Form 990-N.

2. Nonprofits with annual gross receipts between $50,000 and $200,000 must file a
Form-990EZ.

   3. Nonprofits with annual gross receipts over $200,000 or total assets over $500,000 must file a Form-990.

North Carolina PTOs and Booster Clubs Association is here to answer all your questions about benefits of becoming a tax-exempt nonprofit corporation, sales tax exemption, internal controls, fundraising and many other questions you may have.