New IRS Tax Forms Could Benefit Worcester Public School Funding

Friday, July 25, 2014

Nicholas Handy, GoLocalWorcester Contributor

At the July 31st Worcester School Committee meeting, the Worcester Public School District will be discussing a new IRS tax form that could help parents, PTOs, booster clubs, and other entities that wish to raise funds for the local public schools.

The form – the 1023-EZ – allows for smaller charities to apply for tax-exempt status more easily with a much shorter form, which is three pages rather than the standard 26 pages of the 1023 form.

“I have asked the School Committee to refer this item to the Standing Committee on Governance and Employee Issues, and to the Citywide Parent Planning Advisory Council,” said Worcester School Committee member Brian O’Connell. “Clearly, we need to inform our PTOs, booster clubs, and other entities interested in raising funds for projects and activities for the benefit of the children of the Worcester Public Schools that this expedited process to achieve tax-exempt status – and deductibility for the donations they receive - is now available to them.”

Most small organizations with gross receipts of $50,000 or less and assets of $250,000 or less are eligible. The new form is exclusively an online form.

A Common Sense Approach

The IRS believes that this form will be beneficial to both the organizations applying for tax-exempt status, as well as the IRS itself.

By using a shorter form with an expedited process, the IRS will be free to use more of its resources on larger organizations and businesses. Currently, the IRS has more than 60,000 501 (c) (3) applications in its back logs, forms that have been pending for nine months.

“This is a common-sense approach that will help reduce lengthy processing delays for small tax-exempt groups and ultimately larger organizations as well,” said IRS Commissioner John Koskinen. “The change cuts paperwork for these charitable groups and speeds application processing so they can focus on their important work.”

Benefiting the Worcester Public Schools

O’Connell feels that this new tax form could be extremely beneficial to a variety of groups and organizations that support the Worcester schools, children, and programs with fundraising efforts.

Before this form, entities that sought to qualify for tax-exempt status had to go through a complex and time consuming process with the IRS. With that process being shortened, it will be much easier for these groups to apply for tax-exempt status.

“This form is a significant development for parents, PTOs, booster clubs, and other entities which wish to raise funds for the benefit of programs and activities of the public schools and of their students,” said O’Connell. “It is vital also to such organizations that seek foundation support, as many foundations require that their recipients be tax-exempt as a prerequisite to funding.”