Welcome back to a new school year. By this time, you all should hopefully be working with approved budgets, signature cards should be completed for new officers, and fund raisers should be in place.
IMPORTANT NEWS FROM THE OFFICE OF THE MARYLAND COMPTROLLER
Because of the passage of House Bill 232, PTAs and other Nonprofit Organizations will no longer be responsible for collecting sales tax on any of their fundraising sales.
This does not infer that PTAs are exempt from paying sales tax on items they purchase. Therefore, you must provide any vendor, with which you do business, with the Blanket Certificate of Resale to avoid paying the sales tax on taxable items. These certificates have a purchase threshold of $200. If you do not meet this threshold or the vendor does not accept the certificate --although they are supposed to, you must pay the sales tax and then request a refund from the Office of the Maryland Comptroller. PTAs must still pay sales tax on all taxable items purchased that are not for resale and cannot request a refund for that. Please provide Maryland PTA with your sales and use tax license number if you have not already done so.
Your fiscal year has ended. It is not necessary to wait until November 15 to file the required paperwork, you can do it now. Remember that you must send a copy of whichever 990 form you file to Maryland PTA by December 15. IRS imposes a $20/day penalty for filing late.
If your local unit had gross receipts of $50,000 but less than $200,000 (more than $200,000 requires a 990), you are required to file IRS Form 990EZ and the accompanying Schedule A (Schedule B and others as necessary.) This form is due by November 15. Please make sure that your 4 digit GEN code, Block F, is listed as 1999. This code identifies you as part of the Maryland PTA group. IMPORTANT: This should be sent to IRS via Certified Mail.
If your local unit had gross receipts of less than $50,000, you must go to the IRS website and locate and complete form 990N. This is relatively simple to complete and must be completed on line by November 15. However, if you wish to file the 990-EZ instead of the 990-N, you may do so.
Please note, that if you fail to complete either form, you could lose your non-profit status and thus would be required to pay income tax on all profits.
According to Maryland PTA Bylaws, all local units are required to submit a copy of the audit report/financial review and the final financial statement to Maryland PTA. These documents are due in the Maryland PTA office by October 31st.
Charitable Solicitation Updates
While you are working on the 990, why not also complete the Annual Update of Registration for Charitable Organizations and the accompanying Certification Form. Every PTA with gross income of $25,000 or more is required to register and then complete an Annual Update. Some PTAs will be required to pay a fee, but all are required to provide a copy of a 990-EZ or a COF 85.
It is strongly encouraged by both the Secretary of State and Maryland PTA that every PTA registers regardless of their income level because there are benefits to you as a PTA. Potential donors are able to check the Secretary of State’s website to determine registered charitable organizations. For those PTAs under the $25,000 threshold, the only form needed is the Exempt Organization Fund-Raising Notice. The necessary forms can be found on the Secretary of State’s website www.sos.state.md.us. These are due December 31. Remember to send a copy of documents you file to Maryland PTA.
The Maryland PTA bylaw amendment passed by the Convention delegates in 2012 mandating all treasurers and one other board member to attend MDPTA sponsored training by October 31st has been modified by the 2013 Convention Delegates and moved to a different section of the bylaws and is no longer a requirement for Standards of Continuing Affiliation. However, it does remain a bylaws requirement that Treasurers and one other board member be trained on the Maryland and Federal filing documents. Much of this mandated training will be done via the internet. Check the Maryland PTA Website’s Calendar as new training dates are constantly added.
Personal Property Return
Some local units still have not submitted a copy of their Personal Property Report to Maryland PTA as part of the requirements for the Standards of Affiliation. The Personal Property Report was due April 15. Please provide a copy to Maryland PTA as soon as possible. For those PTAs who are delinquent and have forfeited their incorporation status, it will be necessary to complete the revival of your charter along with the accompanying $100 fee and complete all missing Personal Property Reports. Contact Maryland PTA for more information on how to accomplish a revival of your charter.
All PTAs should have paid their insurance by July 1 to avoid the $25 penalty. Make sure that the information sheets provided by the insurer (red, yellow, & green lights) are carefully read, understood and followed. If you have questions, contact Maryland PTA or email Treasurer@MDPTA.org.
Payments for membership should be made to Maryland PTA ($3.75 per member). Please do not pay for any memberships in advance. Maryland is not able to give refunds for memberships that are not issued. Remember ~ Membership dues are due monthly as the members join your PTA!
For all of your financial needs, “Help” is in the form National PTA’s Money Matters, Maryland PTA’s Cash Encounters, or a full day of financial training. If you have any questions, help is always just a phone call or email away. Contact Maryland PTA or email Treasurer@MDPTA.org
Maryland PTA will host two all-day financial workshops for treasurers or anyone else interested in learning about Treasurer responsibilities takes place from 9 a.m. to 4 p.m., Oct. 12, 2013 and Nov. 2, 2013. Registration is required, a fee of $10 will be charged per person and includes lunch. For more information, contact Maryland PTA. For additional assistance in discussing such issues as Budgets, 990s, audits, funding, sales tax, and basic Treasurer Responsibilities, email Treasurer@MDPTA.org.