Best Way to Create a Nonprofit Tax-Exempt Ministry – Does A Pastor Have To File Self-Employment Tax On Housing If He Is Employed By A Church?
Matthew 5:15 says, No one lights a lamp, and then puts 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, some examples of IRS approved churches, and the best way to start a church.
Why do you want church status for your ministry?
The worth of your church in contrast to any other nonprofit is greater rights, and less constraints.
First, churches do not file income tax returns. All other nonprofits do.
Second, churches do not need to provide records of receipts, disbursements, nor do they must provide testimony under oath, of these statements like the rest of the nonprofits do.
Third, churches have special audit protections, where each of other nonprofits do not.
In case you were wondering if your organization can qualify, here’s some 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 contributions.
Young Life, a non-denominational church which focuses on youth and meet at recreation areas.
The Billy Graham evangelical Association, among 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 then changed the organization to church status.
Focus on The Family, a ministry that provides guidance and counselling on parenting, marriage 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’s no statute anywhere that says a church must be a 501c3.
A church could be organized as a 501c3, a 501c4, a 501d, a for-profit company or a 508c1a.
How your church is organized is vital to what it can and can’t do.
The ideal way to register your church is a 508c1a since it doesn’t wave rights and also have speech restrictions, when compared with all other nonprofits.
We specialize in 508c1a formation and registration. Just as a lampstand holds a candle to be a light to everyone, a 508c1a holds your ministry to be a light to everyone on earth.
Contact us to get started today.