Best Method to Set Up a Nonprofit Tax-Exempt Christian Outreach – The Zondervan Church Nonprofit Ministry Tax & Financial Guide
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 worth of forming your Christian organization as a church, some examples of IRS approved churches, and the ideal method to start a church.
Why do you need church status for your ministry?
The value of your church in contrast to any other nonprofit is greater rights, and fewer constraints.
First, churches do not file income tax returns. All other nonprofits do.
Second, churches don’t need to supply records of receipts, disbursements, nor do they have to provide testimony under oath, of such statements like the rest of the nonprofits do.
Third, churches have special audit protections, where all 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 donations.
Young Life, a non-denominational church that focuses on youth and meet at recreation places.
The Billy Graham evangelical Association, among the most significant evangelism ministries in America approved for association of churches in 2016. After 66 years of operation as a nonprofit they were audited by the IRS and subsequently changed the organization to church status.
Focus on The Family, a ministry that provides guidance and counseling on parenting, marriage and other topics through radio, books and social media.
The law firm, Liberty Counsel, an integrated auxiliary of Thomas Road Baptist Church.
Apart from the various kinds of churches, there are various ways to organize a church.
There’s not any statute anywhere that states a church is required to 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 crucial to what it can and cannot do.
The best way to start your church would be a 508c1a because it does not wave rights and have speech limitations, 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 get started today.