Is a PTO or booster club tax-exempt?
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Short answer: A school PTO or booster club is tax-exempt only if the IRS has recognized it, usually under section 501(c)(3), or if it's very small: groups with gross receipts of normally $5,000 a year or less can be exempt without applying. Having an EIN doesn't make a group exempt. Either way, most groups must file a return with the IRS every year, even if they owe no tax.
| If your group | It files |
|---|---|
| Normally takes in $50,000 or less | Form 990-N (e-Postcard), a short online form |
| Takes in under $200,000 and has under $500,000 in assets | Form 990-EZ |
| Is larger than that | Form 990 |
Can a PTO be a 501(c)(3)?
Yes. Section 501(c)(3) is the part of the tax code most school groups are exempt under, and gifts to a 501(c)(3) are usually tax-deductible for the donor. A PTO, or parent-teacher organization, gets that status in one of two ways:
- It applied and the IRS approved it. The IRS sends a determination letter. Keep it forever.
- It's very small. Groups with gross receipts normally $5,000 a year or less can be treated as exempt without applying. Once you grow past that, you need IRS approval.
Not sure which applies? Look your group up by EIN in the IRS Tax Exempt Organization Search. If you're not listed, ask a CPA or your state PTA before filing season.
Does a booster club need to be a 501(c)(3)?
The same rules apply to a booster club. If its gross receipts are normally more than $5,000 a year and it wants to be tax-exempt, it needs IRS recognition. Status also matters in everyday ways: donors usually want to know their gift is deductible, and some services are only for 501(c)(3) groups. Venmo's charity profiles are one example. Whether your booster club should apply, and how, is a good question for a CPA.
Booster club EIN
An EIN (Employer Identification Number) is your group's tax ID, like a Social Security number for the group. The bank account, payment apps and IRS filings all use it.
- The IRS sent it in a letter called CP 575. Lost it? An officer can call the IRS at 800-829-4933 for a replacement (Letter 147C).
- Use the group's own EIN. Never the school district's, and never a volunteer's Social Security number.
- An EIN is just an ID. It doesn't make the group tax-exempt.
Do booster clubs have to file taxes?
Most owe no income tax, but they still file a return every year. For most small groups that's the 990-N, due on the 15th day of the 5th month after your year ends: November 15 for a June 30 year-end, or the next business day if that's a weekend or holiday.
Three missed years ends your exemption.
Your state may want its own filings too, separate from the IRS. Check with your state PTA or your state's charity office.
PTA tax-exempt status
A PTA unit usually has its own EIN and files its own return with the IRS, and your state PTA may ask for it earlier than the IRS does and want proof the IRS accepted it. If you can't find your group in the IRS search, or last year's return didn't post, call your state PTA first.
Questions people ask
Is our group exempt because the school is?
No. Your group is separate from the school and the district, with its own EIN and its own status.
How do I check whether last year’s 990-N was filed?
Look your group up in the IRS Tax Exempt Organization Search. It shows your status and the returns that posted.
Who can help with a revoked status?
Start with IRS Exempt Organizations customer service at (877) 829-5500, and a CPA. If a problem won’t clear up, the Taxpayer Advocate Service can step in.
Next step: how to file the 990-N, with a deadline checker for your year-end.