Virginia PTA Tax Exempt Status

The Virginia PTA is classified as a tax-exempt 501(c)(3) Public Charities under the Internal Revenue Code. The Virginia PTA operates as a not-for-profit organization whereas the Virginia PTA, its local units, councils and districts are organized and operated exclusively for charitable and educational purposes. This 'mission' is required to be defined in the organization's bylaws. The IRS examines bylaws, articles of incorporation, etc., to determine that the purpose of the organization are in compliance with the following restrictions:

• A PTA as a 501(c)(3) must be organized and operated exclusively for charitable, educational, or scientific purposes (mission as defined in bylaws)
• Its resources and funds cannot be used for private benefit of any officer or director (private inurement ).
• Upon dissolution, its assets must be distributed for one or more of the defined exempt purposes.
• It cannot engage in any political activity. Organizations that are classified 501(c)(3) are forbidden to support candidates for public office
• It can only engage in an insubstantial amount of lobbying activity.

A PTA's tax-exempt status is one of its most important assets. If that status is revoked, charges of negligence or mismanagement may be brought against the officers and directors. Therefore, when considering a proposed activity, the PTA should consider if the activity would adversely affect their tax-exempt status.