Why All Churches Should Be A 508(c)(1)(a)
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Why All Churches Should Be a 508(c)(1)(A)
Many church pastors are unaware that founding a church as a 501(c)(3) organization imposes free speech restrictions. Specifically, all 501(c)(3) entities are prohibited from influencing legislation and participating in political campaigns. As social issues increasingly intersect with political matters, churches and their leaders often avoid addressing certain topics or taking definitive stances, fearing potential repercussions. This apprehension can hinder the teaching of Biblical principles and the development of godly leaders. |
What is a 508(c)(1)(A) Organization Video
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Purpose of Analysis
This analysis aims to highlight the dangers and restrictions associated with establishing a church under 501(c)(3) compared to the benefits and rights of organizing as a 508(c)(1)(A). Notably, 508(c)(1)(A) organizations are inherently tax-exempt and do not have to relinquish their rights to religious exercise and free speech as a condition of tax exemption.
Section 508(c)(1)(A) Benefits for Faith-Based Organizations (FBOs)
Churches, integrated auxiliaries, and associations of churches are not required to apply for 501(c)(3) status to be tax-exempt and offer tax deductibility for contributions. While most organizations seeking tax-exempt status must apply to the IRS, FBOs can be formed under Section 508(c)(1)(A) and enjoy "mandatory exceptions" from these requirements. This provision was codified in the Internal Revenue Code (IRC) to formally establish the right to free exercise of religion. A 508(c)(1)(A) organization is, by its very nature, a religious, non-profit, tax-exempt entity. All donations to 508(c)(1)(A) FBOs are tax-deductible to donors to the fullest extent of the law. Section 170(b) of the IRC states that donations are automatically tax-deductible to "churches or a convention or association of churches."
Annual Filing Requirements: 508(c)(1)(A) FBOs have no annual income tax filing requirement, such as Form 990. They are also not required to keep records, render statements under oath, nor comply with rules and regulations for reporting that the IRS may prescribe. In contrast, non-501(c)(3) FBO organizations are required to file tax returns annually, and failure to do so for three consecutive years results in automatic revocation of tax-exempt status. To get started fill out the information below.
If you just have a single question to ask us about a 508(c)(1)(a) organization, use the Contact Us page.
This analysis aims to highlight the dangers and restrictions associated with establishing a church under 501(c)(3) compared to the benefits and rights of organizing as a 508(c)(1)(A). Notably, 508(c)(1)(A) organizations are inherently tax-exempt and do not have to relinquish their rights to religious exercise and free speech as a condition of tax exemption.
Section 508(c)(1)(A) Benefits for Faith-Based Organizations (FBOs)
Churches, integrated auxiliaries, and associations of churches are not required to apply for 501(c)(3) status to be tax-exempt and offer tax deductibility for contributions. While most organizations seeking tax-exempt status must apply to the IRS, FBOs can be formed under Section 508(c)(1)(A) and enjoy "mandatory exceptions" from these requirements. This provision was codified in the Internal Revenue Code (IRC) to formally establish the right to free exercise of religion. A 508(c)(1)(A) organization is, by its very nature, a religious, non-profit, tax-exempt entity. All donations to 508(c)(1)(A) FBOs are tax-deductible to donors to the fullest extent of the law. Section 170(b) of the IRC states that donations are automatically tax-deductible to "churches or a convention or association of churches."
Annual Filing Requirements: 508(c)(1)(A) FBOs have no annual income tax filing requirement, such as Form 990. They are also not required to keep records, render statements under oath, nor comply with rules and regulations for reporting that the IRS may prescribe. In contrast, non-501(c)(3) FBO organizations are required to file tax returns annually, and failure to do so for three consecutive years results in automatic revocation of tax-exempt status. To get started fill out the information below.
If you just have a single question to ask us about a 508(c)(1)(a) organization, use the Contact Us page.
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Lord' Glory Ministry Can Help You File All Documents for a 508(c)(1)(a) Church Or Nonprofit
Lord' Glory Ministry Can Help You File All Documents for a 508(c)(1)(a) Church Or Nonprofit
If you or someone you know is interested in filing for 508(C)(1(a) status, start by providing us basic information below so that we can provide you with a Quote. Prices start at only $99 for a basic set up. We provide all Documents, then you file with your state.
