Churches - Tax Exempt and Charitable Status

Several churches have expressed a concern as to whether they are a tax exempt organization and whether contributions to their organization are tax deductible by the contributor. A review of United States Internal Revenue Service (IRS) documents will prove that these concerns are unfounded.

According to the IRS documents "Churches that meet the requirements of IRC section 501(c)(3) are automatically considered tax exempt and are not required to apply for and obtain recognition of tax-exempt status from the IRS."

(Quote from IRS publication Tax Guide for Churches and Religious Organizations - benefits and responsibilities under the federal tax law.)

After detailed research of information provided through the IRS web site, CBFNC has produced two documents that we believe will provide you sufficient information to make an informed decision on these issues.

If you are looking for a short, direct approach, follow the link to a one-page document titled "Do Churches Need to Apply to the IRS to get Tax-Exempt Status or get any special Tax Identification Number?". The resounding conclusion to the question is no.

Those desiring to research the issues further should follow the link to a more detailed document titled "Do Churches and Religious Organizations Need to Obtain Recognition of Tax-Exempt Status Through a Group Determination Letter?". This document begins with an executive summary and then provides a detailed analysis of IRS publications relating to this issue. Links are provided in the document to facilitate your access directly to the document on the IRS web site in case you desire to verify the accuracy of the information provided.

The primary IRS source used in this research is Tax Guide for Churches and Religious Organizations - benefits and responsibilities under the federal tax law. You may read or download this document directly from IRS by clicking on the following link http://www.irs.gov/pub/irs-pdf/p1828.pdf.


The staff and leadership of CBFNC will be glad to discuss this issue with you should you have additional questions.

  

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