Nonprofit Tax Comparisons: Church vs. Religious Organization

One assumption we run into a lot in our work is the idea that for tax purposes, churches and ministries are essentially the same category of nonprofit. Turns out, that’s not exactly how it works.
📚 ADDITIONAL RESOURCES:
•VIDEO: What Can You Do With a 501(c)(3)? Understanding IRS Charitable Purposes • What Can You Do With a...
•VIDEO: Public Charity vs Private Foundation vs Private Operating Foundation
• Public Charity vs. Pri...
•VIDEO: How Do You Start a 501(c)(3) Nonprofit? • How Do You Start a 501...
•VIDEO: The 501(c)(3) Church Controversy • The 501(c)(3) Church C...
•VIDEO: Does A Church Need 501(c)(3) Status? • Does A Church Need 501...
•VIDEO: Form 990: The Public Window Into Your Nonprofit • Form 990: The Public W...
•VIDEO: Fundraising Registration in Multiple States? • Fundraising Registrati...
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0:00 Introduction
0:58 Nonprofit Purpose Categories
1:15 The Religious Purpose Category
3:14 Differences when Applying for 501(c)(3) Status
6:00 Differences when Filing Form 990
7:08 Differences in Registering for Charitable Solicitations
7:49 Conclusion

[@FoundationGroup]

If you need help filing for IRS 501(c)(3) status, we’d love to help. Fill out the form at bit.ly/3i6rFxz or give us a call at 888-361-9445.

[@charmingcharlie5211]

Some tax expert have suggested that 501c3 to 508. But in this video you stated that a 508 is automatically a 501. So I'm trying to see why it would be wise to convert a 501 to a 508. The organization is a church by the way.

[@FoundationGroup]

This is the part where we said there is a LOT of misinformation. The "tax expert" you reference is no tax expert at all if that's what they're suggesting. There is no such thing as a 508 organization. Section 508(a) of the Internal Revenue Code describes how nonprofits qualify and become approved as 501(c)(3) or other 501(c) organizations. 508 is not a different type of status. Anyone that tries to sell you on the idea that there is a difference is either misinformed or intentionally lying to you. Please watch our other video about the church 501(c)(3) / 508 debate here for more details: th-cam.com/video/abhGpXK61LI/w-d-xo.html

[@ChurchofGnome]

Curious if you have insights of what makes a religious organization qualify for the 1023-ez form?
IRS Publication 1828 states: "When applying for recognition as tax exempt under IRC Section 501(c)(3), churches and some religious organizations must use Form 1023. Smaller religious organizations may be eligible to use Form 1023-EZ"

[@FoundationGroup]

Could be a couple of things: 1) if a religious organization qualifies as an association of churches or a religious order (which as a specific definition), they are treated the same as a church and do not qualify for the 1023-EZ, or 2) a religious organization that is disqualified for the same reasons another charity might be required to file the full Form 1023, such as revenue expectations being too large for the EZ.

[@user-ps8bf5nv9c]

If a church holds a major annual Event at a venue rather than their church for their evangelistic purposes by inviting the public and selling tickets to the event will they then not qualify for the 501(*) (*)?
Or raise funds by hosting a banquet where tickets are sold to attend the banquet as raising funds for the church andnits activities such as church theology classes that gives a certificate of completion to be free for disadvantaged children such as those leaving foster care? I have amny more questions..

[@FoundationGroup]

I don't see anything in your question that would be a problem under 501c3.

[@user-ps8bf5nv9c]

@FoundationGroup Jacksonville Florida made us take our church sign down stating we are not a church. Due to some bs of the government office losing the commercial building's blueprints.

[@deborahwoodfork6776]

Thanks how do I start a church under our 501 3 C

[@FoundationGroup]

Hi, Deborah. That's a tough question to answer in a snippet. I recommend you reach out and talk to a member of our sales team about this. They can help you understand your options and best course of action to set up a church that is a part of a larger effort. Visit our website at www.501c3.org .

[@jessblair37]

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[@scottpappas3989]

A church is a place of worship, congregation, and community; maybe absolution if you’re into that sort of thing. That’s it. It needs: An operating budget for the pastor, utilities, heat, etc.; a celebratory budget for holidays and events; a maintenance fund, new roof, a/c unit, etc; and incidentals. Based on that budget, any excess titbe should be distributed to the needy within their community. If they want to keep the excess tithe, then they should be taxed.

[@FoundationGroup]

Don't hold back...tell us what you really think!

[@dr.tomtufts5238]

@@FoundationGroup but is the STATEMENT above correct? "It IS a place..." IT NEEDS ...." because the definition Scott Provided is not anywhere close to any church that I have pastored in the past