Best Way to Start a Nonprofit Tax-Exempt Ministry – How Do You Know If Your Church Is 508c1a Business
Matthew 5:15 says, No one lights a lamp, then sets it under a basket. Instead, 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 method to register a church.
Why do you need church status for your own ministry?
The value of your church compared to some other nonprofit is better rights, and less constraints.
First, churches do not file income tax returns. All other nonprofits do.
Second, churches do not have to provide records of receipts, disbursements, nor do they have to give testimony under oath, of such statements like the rest of the nonprofits do.
Third, churches have special audit protections, where all other nonprofits don’t.
In case you’re wondering if your organization can 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 contributions.
Young Life, a non-denominational church that 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 advice and counseling 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.
Besides the different kinds of churches, there are different ways to organize a church.
There’s not any 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 company or even a 508c1a.
How your church is organized is crucial to what it can and cannot do.
The ideal way to register your church is a 508c1a since it does not wave rights and also have speech limitations, compared to all other nonprofits.
We specialize in 508c1a registration and formation. Just as a lampstand holds a candle to be a light to everyone, a 508c1a holds your ministry to be a light to everybody on earth.
Contact us to begin today.