Form 990-EZ, Schedule A for a PTA

[JohnH]

I'm helping out with a Form 990-EZ and we're hung up on a question on the Schedule A. I looked up several 990 forms on Guidestar and the answer still eludes me.

In Part IV of Schedule A (Reason for Non-Private Foundation Status), some PTA's check box 12. Others check Box 13, describe it as a Type I, and then list the name of the school on the next line. If anyone can tell me which one is correct or how to decide which one to use, I'd be most grateful.

[Gail in Virginia]

Has this PTA applied for exempt status? Normally the answer to that question on schedule A should match whatever was put on the original application unless it has changed. And as a rule, I would use box 12 unless the organization could not show that the degree of support they get from the community qualified them for that category. This is a stronger argument for being a 501( c) 3, but does require you to complete the support schedule in the next section every year. I suspect that the organizations who are checking box 13 and putting the name of the school just don't want to be bothered with the more detailed information about where the money comes from that is required by box 12.

[JohnH]

Gail:

Thanks very much for the quick reply.

Yes, this PTA is a 501 © (3) covered under the state organization's exempt status and lists the Group Exemption number on its 990-EZ. After spending a couple of hours on Guidestar staring at 990's filed by other schools in my own community, I've become aware that there are lots of 990's being filed incorrectly. Some use box 12, others use Box 13, some don't check anything, and I've seen quite a few check box 3 indicating they are a school (which is clearly incorrect).

Your response raises an interesting question - would it be acceptable to check Box 13 and thus avoid providing the supporting info, or is there some reason that Box 13 is an inappropriate choice?

[Gail in Virginia]

When I applied for exempt status for a couple of local PTO's I was told that box 12 was the more favorable status by the agent processing the applications, so I have continued to use that and to provide the support information. I think that I would go that route if I were you, but I would also try to get a look at which they checked when they initially applied for exempt status. I was under the impression from the agent I spoke to that organizations covered under box 13 might not necessarily be 501 (c ) 3, but might instead be covered under a slightly different code section resulting in contributions not being tax deductible. Not all organizations that are required to file 990 are charitable organizations.

[JohnH]

I believe you are right.

After doing some more research, I found some other info that says box 13 is to be used by 501(a) organizations if I'm reading that correctly.

I've come to the conclusion that the 990 or 990-EZ is the easier part of this process. The real work comes in getting the Schedule A filled out properly. Don't recall when I've ever spent so much time doing something and still find myself left with such an uneasy feeling about the whole task. The only consolation right now is seeing what a sloppy job so many others do in preparing the form, based on what I see on Guidestar.