When you join the National PTA and Pennsylvania PTA your local PTA automatically becomes a 501 ( c ) 3 nonprofit organization. Local PTA units are granted nonprofit status under the regulations of the Internal Revenue Service (IRS) Code Section 501 ( c ) 3. In a January 7, 1970 ruling, the IRS granted nonprofit status to Pennsylvania PTA and to all of its constituent bodies. This status protects PTA units from paying federal taxes on the funds they raise for educational, organizational, and leadership purposes.

    All local PTAs in good standing are classified as 501 ( c ) 3 nonprofit educational organizations. Annually, the state PTA provides the IRS with a list of those units eligible for exemption.

    As a 501 ( c ) 3 nonprofit organization, PTAs can apply for grants. Most foundations or grant funders will only accept proposals from organizations that hold 501 ( c ) 3 status and are in good standing. Grant funders request current copies of 501 ( c ) 3 determination before they will review requests for grants funds. This pertains to both small and large grants.