Do you know the difference between a PTO and PTA school organization? These are two common types of Non-Profit Organizations as defined by the IRS. The PTA “Parent Teacher Association” and the PTO “Parent Teacher Organization” have distinct differences between the two. A Parent-Teacher Association (PTA) is defined as “an organization of local groups of teachers and the parents of their pupils that works for the improvement of the schools and the benefit of the pupils”. The Parent-Teacher Organization (PTO) is defined as “a formal organization composed of parents, teachers and staff that is intended to facilitate parental participation in a school”.
The Internal Revenue Service sees both the PTO and PTA school organizations as entities that fall under unique tax rules. These organizations intend to help the schools and children, therefore the work is non-profit and usually not taxable. Federal-income-tax breaks allow these organizations to do great work in communities all across the United States. Just like all other Non-Profit Organizations, PTAs and PTOs are required to obtain a federal tax ID number to operate. To obtain a Non-Profit Tax ID for your PTO or PTA online, complete the Non Profit Tax ID Application and select “PTA/PTO School Organization” from the Drop-Down menu in order to obtain the appropriate official Tax ID.