PTAs are legally classified as “public charities” and are organized and operated exclusively for the exempt purposes recorded in Article II of all PTA bylaws. Public charities may not carry on any activities not permitted under Section 501(c)(3) of the Internal Revenue Code (IRC).
As public charities, PTAs:
- Are eligible to receive tax-deductible contributions
- Are generally exempt from paying federal and state taxes
- Must file federal and state Returns annually
- May not use its funds to benefit a private person.
Additionally, PTAs are noncommercial and may not endorse a commercial entity or engage in activities not related to promoting the Purposes of PTA. The name “PTA” may not be used in conjunction with commercial activities, including the promotion of commercial goods and services.