PTO Annual Legal Checklist
Review Organizational Structure
Review the PTOs organizational structure and its relationship with the school. Is it an independent incorporated tax-exempt organization? School program? Unincorporated association of parents? Is the structure appropriate and working for the PTO? Consider incorporating and applying for IRS tax-exempt status. Apply for local business license (if required by your locality) Prepare and file local personal property tax return on business assets (if required by your locality) Apply for a state sales tax exemption if needed.
Operational Requirements -- Annual
Develop an annual budget with fundraising goals Hold annual meeting of governing board; elect officers File annual report with state (if incorporated and required by state) File IRS 990 information return (if tax-exempt by IRS) and state tax returns (if required) Have an annual audit (as appropriate based on budget)
Operational Requirements - Monthly
Pay bills
Operational Requirements - Ongoing
Maintain minutes of all board, committee and other meetings Review program goals Review bylaws/other operational guidelines Review program development including fundraising and special event activities Revise budget to reflect current realities
Common Legal Issues
Harassment, including sexual - train all volunteers, presenters and staff to avoid sexual harassment; develop policy regarding investigating and responding to reports of harassment Discrimination - treat all volunteers and participants in programs as similarly as possible; make appropriate accommodations whenever possible; develop policy for investigating claims of discrimination Risk Management Program - annually review the activities of your PTO most likely to lead to legal claims and determine which of these activities you can eliminate, which you can make less risky, and which you can cover with insurance or transfer the risk via contract to other parties