Legal Method to Launch a Nonprofit Tax-Exempt Christian Organization – Designated Contributions Church Money Used For Other Expenses 508c1a FBO
Matthew 5:15 says, No one lights a lamp, and then sets it under a basket. Rather, a lamp is placed on a stand, where it gives light to everyone in the home.
I want to share with you briefly the value of forming your Christian organization as a church, a few examples of IRS approved churches, and the ideal method to form a church.
Why do you want church status for your own ministry?
The worth of your church compared to any other nonprofit is greater rights, and less constraints.
First, churches do not file income tax returns. The rest of the nonprofits do.
Second, churches do not need to supply records of receipts, disbursements, nor do they have to give testimony under oath, of such statements such as all other nonprofits do.
Third, churches have particular audit protections, where all other nonprofits don’t.
In case you were wondering if your organization may qualify, here is a few examples of
IRS approved churches and church ministries:
The Salvation Army. Since 1958, classified as a church and association of churches, their principal income comes from thrift sales and donations.
Young Life, a non-denominational church which focuses on youth and meet at recreation places.
The Billy Graham evangelical Association, one of the most significant evangelism ministries in America accepted for association of churches in 2016. After 66 years of operation as a nonprofit they had been audited by the IRS and subsequently changed the organization to church status.
Focus on The Family, a ministry that provides guidance and counseling on marriage,
parenting and other subjects through radio, books and social media.
The law firm, Liberty Counsel, an integrated auxiliary of Thomas Road Baptist Church.
Apart from the different types of churches, there are various ways to organize a church.
There is no statute anywhere that states a church must be a 501c3.
A church could be organized as a 501c3, a 501c4, a 501d, a for-profit corporation or a 508c1a.
How your church is organized is vital to what it can and cannot do.
The ideal way to start your church would be a 508c1a because it doesn’t wave rights and also have speech restrictions, compared to all other nonprofits.
We specialize in 508c1a formation and registration. As a lampstand holds a candle to be a light to everyone, a 508c1a holds your ministry to be a light to everyone in the world.
Contact us to begin today.