Quote:
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.
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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.
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