Church Incorporation Yes Or No ?

[Scott Hutchinson]

Here check this out.
http://hushmoney.org

[James Griffin]

Originally Posted by Scott Hutchinson

Here check this out.
http://hushmoney.org

Interesting site, but they only address the legality not the practical aspects.

It's also possible to legally run a multi-billion dollar enterprise without incorporating, but it would be foolish to do so. :-)


For reasons listed earlier it is often a good thing to choose 501(c)(3).

[embonpoint]

Originally Posted by James Griffin

Interference is a broad term. For the most part the government interferes whether you are incorporated or not. There are different types of incorporation but the one most familiar to the church world would be the 501(c) (3) so named because of where it is found in the Internal Revenue code. Unless you are so incorporated donors will not be able to deduct contributions to your church from their taxes.
If you are a church group there are certain restrictions on your political speech.

http://www.apostolicfriendsforum.com...3&postcount=24

(Above is a link to an article on this topic in another thread).


But not all non-profits have the same restrictions.

The primary trigger for governmental interference would be to accept federal funds, those invariably come with strings and lots and lots of rules. Example getting some type of grant for a church school.

How this helped answer your question, if not PM me :-)

You are not stating that if a church is not incorporated that the donations are not deductible are you?

Just trying to clarify.

[James Griffin]

Originally Posted by embonpoint

You are not stating that if a church is not incorporated that the donations are not deductible are you?

Just trying to clarify.

No, that was indeed poorly worded ,(what I get for being up past my bedtime),technically a bona fide church is not required to file a Section 501(c)(3) tax-exemption application (IRS Form 1023) to be recognized either as a church or as tax exempt per se. However without one they are more likely to be subject to a challenge: a tax-exemption determination letter makes it clear to church members that their contributions are tax deductible. Some church leaders believe that if members could never be sure if their contributions were deductible that uncertainty could discourage their willingness to make contributions, especially substantial contributions, to the church.

On the other hand even with 501 (c)(3) status a church can be held up to scrutiny as to whether it would pass the federal "church test".

And as pointed out in previous posts there are other reasons just as valid (and perhaps even more important) as donor's ease of claiming deductions, for a church to seek 501(c)(3) status.