9 Nov. 2016
 
Dear GPS Parent Support Organizations,
 
We have been asked to share some information with you, which we hope will be shared with your board and help in keeping them informed.
 
Recently, one of our PTRO's received a letter saying they owed $150 to file Minutes. THIS IS A SCAM.  Please let your board know that they should not be paying any amount of money to file their Minutes.The Arizona Corporation Commission sent out a notice last April which you may read using this link :   https://www.azcc.gov/Divisions/Administration/news/2016Releases/04-06-2016%20Misleading%20Solicitation.pdf
 
Next we want to address an issue that has come up several times concerning carry-over amounts and taxes.
 
As a Tax-exempt 501 (c) (3) organization, you may carry over any amount of money that your organization has voted to carry-over in the budget. (Remember, budgets should be amended if more money is earned than projected.)  There has been a misunderstanding that you are only allowed to carry-over $2000 each year or you will owe taxes to the IRS.  This is not true.  As a Tax-Exempt Organization ( which you must apply to receive tax-exempt status with the IRS) you do not pay taxes on earnings regardless of the carry-over. You are tax-exempt. 
 
If you are an Informal Non-Profit,  if your net income is over a certain amount,  the IRS may determine that you owe taxes. (Please note that all organizations should be filing income taxes each year.) This could possibly be where it would be in the best interest of your organization to put all funds earned back into the organization to prevent owing taxes at the end of your fiscal year. Please check with your tax adviser when filing taxes.
 
It is always advisable that you try to spend money the year it was earned in order to allow those who helped make that money see the benefits from it, but for either type of organization,  it is okay to save money from year to year for a big project. This should be reflected in your budget and would carry over each year until the purchase is made.
 
Our best advice would be for all organizations to look into applying for tax-exempt status with the IRS.  The cost is a one time fee of $275 for organizations earning under $50,000 a year, and the process has become much easier. Vnet is available to help you.
 
Also, regardless of tax-exempt status,  we strongly encourage every Parent Support Organization to incorporate with the Arizona State Corporation Commission.  By incorporating, officers of your organization are no longer personally liable for the actions of the the organization.  Any liability would be placed on the organization itself, as the officers would then be acting on behalf of the corporation.  The fee to incorporate is a one time $40 fee.  An organization must advertise to incorporate for three weeks (one time cost around $40-$60). Once approved, the organization is responsible to annually update for $10 (can be done online) . It's a small price to pay to protect your Officers.
 
As a reminder,  this Thursday starting at 6 PM, the District will be holding a Make-up Mandatory District PSO Training at the District Offices, Building F, South Classroom. Two officers from each organization must attend the Mandatory District Training each year in order to have the organization approved by the School Board.  We also invite other parent volunteers who are interested in being there.
 
Please go to our website and sign up to receive Vnet email notifications.  Also, we would love for you and any board members to go to www.gpsvnet.net and take our Vnet Survey. Just click on the link on the Home Page.  Your feedback will greatly help us in helping our GPS Parent Groups.
 
Thank you for volunteering and making a difference!
Vnet
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